Property of the Fortnight – 109 Larter St, Ballarat East VIC 3350
Our pick of the week this week is 109 Larter St Ballarat East in regional Victoria! Recently sold for $340K, this updated 2 bedroom, 1 bathroom house sitting on ~900sqm block offers an amazing subdivision deal without too much cashflow drain:
- Location – minutes drive to Ballarat CBD. Two local primary schools nearby
- Building – Weatherboard house in decent condition with updated interiors and bathroom.
- Value Add Potential – the block of land next door has been subdivided and units built at rear of the block. The 900sqm block can be easily subdivided into two as is without having to knockdown the existing house, and owner can decide whether to build on rear block or sell off with profit.
- Yield – rental appraisal approx. $300 for existing house so about 4.5% gross rental return.
This deal is amazing from the point that you can subdivide and build or subdivide and sell off the block. Subdivision will be subject to council approval however given next door already has subdivision executed plus units built the chance of council approval is extremely high. At such low cost in acquiring a sub-dividable site yet in close proximity to Ballarat Central, not costing too much to hold, it’s definitely a gem every investor would like to keep in their portfolio.
Ballarat has been bucking the upward price trend after Geelong. With a low entry price and low vacancy rate of 0.8% the area has been defying the odds in the last 12 months and median price & rent continues to grow as more and more investors see value. As a matter of fact Domain economist Trent Wiltshire has said that Ballarat & Bendigo had price growth almost as fast as Melbourne’s over the past decade.
A little bit about fundamentals, Ballarat is about 110km north west of Melbourne with a current population of about 107K. Population growth is projected to be about 144K by 2036. Multiple industries exist there too: service industry (health care, government, retail), tourism (historic Gold Mining town), manufacturing (do you know most of Mars/Snickers/M&M are manufactured in Ballarat?) as well as a growing renewable energy sector industry.
Contact us today if you need assistance to find similar investment properties!