Finding Another Asset Under $250,000

11 Winter Street, Redan
Photo: Doepel Lilley and Taylor

Last week I had the pleasure of securing a 3 bedroom 1950s era brick home in a beautiful location within Ballarat for two very special clients.

The brief was particularly challenging for two reasons; firstly, they had already purchased last year in Ballarat’s Wendouree (north of the city), and secondly, they’d had a really great experience with their first purchase and wanted two properties priced under $250,000 returning 6 per cent.

I was determined to find them another property in a fantastic location, targeting a specific tenant.

The beautiful scenery around Lake Wendouree
Photo: Ed Dunens

Wendouree: An Investor Hotspot

Their current Wendouree property is also a 1950s brick house but that is pretty much where the parallels end. They have a secure long-term tenant who runs her business from home, and it’s fair to say that Wendouree is a family area offering a high chance of long-term tenancies.

Surrounded by schools (both public and private) and offering a railway station, a shopping mall and a family lifestyle, it’s a hot pocket for investors right now.

1950s style homes are common in Wendouree
Photo: Doepel Lilley and Taylor

To throw opportunity into the mix, Wendouree typically offers a strong mix of these unrenovated brick 1950s houses on full blocks – and any investor who has turned their hand to a good renovation project would know that their solid timber flooring, enormous sized living areas, well laid out floorplans and generous blocks make these properties exciting renovation assignments.

“It’s fair to say that Wendouree is a family area offering a high chance of long-term tenancies.”

Polished boards, new kitchens, new curtains and upgraded bathrooms can make a significant difference to rental values and asset value.

Going the extra step to incorporate ducted heating and cooling can guarantee a rent of $280 per week or higher for most.

We wanted to diversify our second property selection in Ballarat and so our criteria eliminated Wendouree and neighbouring Ballarat North. I made a deliberate decision to target the city’s southern pockets including Redan, Newington and Mount Clear.

One of the large bedrooms inside our chosen investment property
Photo: Doepel Lilley and Taylor

Finding a Property in Ballarat’s South

Our find was one street back from the Redan/Newington border on leafy Winter Street. Newington, which features some stunning properties around Lake Wendouree, is one of Ballarat’s glossiest pockets.

“This home was occupied by three younger tenants on employment contracts who kept the property like it was a show home.”

Typically, a budget of less than $300,000 would preclude even the unfussiest of buyers, but this home was interesting because it had a rear subdivision. Its reduced land size not only enabled it to fit the budget, but also enhanced its rental yield (keeping in mind that tenants rent houses, not land).

Their small block was home to an enclosed courtyard
Photo: Doepel Lilley and Taylor

Featuring period detailing, a modern fit out and three large bedrooms, this house was occupied by three younger tenants on employment contracts who kept the property like it was a show home.

With an advertised price of $239,000 and a competing buyer, I had to be tactical. I offered the winning bid of $235,100 and date stamped it for validity for that afternoon only.

Due to an existing fixed term rental of $270 per week, my clients now had two solid, reliable brick homes delivering gross rental yields of 6 per cent. This was a stellar result for these second time Ballarat investors.

For more information about Ballarat, read our suburb profile here. For a sales and recent sales report, please visit our Free Market Report page.

Photo: Pricefinder

Points of Interest in Ballarat, Postcode 3350

Ballarat and Queen’s Anglican Grammar School
University of Ballarat
Sovereign Hill
City of Ballarat