Central Equity Apartments

[buzzlightyear]

MICM have a bad rep as you mention for very good reason. Don't expect much co-operation or help when it comes to organising lifts,etc when you move in.

In all my time the process, appropriate person to contact to organise lift access, times you can move, has been clear and have had no issues.

 

[jcwc888]

Out of curiousity - what is the size (in sq/m) for the apartments in these developments and what are the average prices? Some people in this thread are saying that some of the newer ones are getting small, but what do you mean as small?

As a comparison, I've been looking at various 2 bedroom apartments in Canberra and i think they are getting too small and too expensive. As an example, some new 2 bedroom apartments off the plan* are around 75sq/m (priced between 370-390k). These are located in Bruce which is relatively close to major facilities but a long way from supermarkets and shops if you don't have a car.

So how do these prices compare to the ones in Melbourne that are being spoken about here.

* Note - i don't plan to buy anyoff these off the plan but i am just looking for curiousity sake and and also to gain an understanding of the developments.


Thanks


g

that's pretty hard to say in Southbank.... 2 bedders can range from 70-100sqm depending where you look and btw 410-500K, but it really depends. In south melbourne, it's generally a notch of 5-10% higher. i bought a 2 bedroom around 100sqm for 390K in Jan 2008 at Southbank. i am excluding the freshwater places as i cannot afford them.

Nowadays sizes are becoming smaller - just look at 109 Clarendon St. Also southbank and sth melb has a very high sales turnover, last checked 3rd highest of units in melb, st kilda, southbank.

 

[Tony3008]

Coming late to this thread as a new forum member I can add my own experience. I bought two Central Equity units whilst living in the UK - couldn't buy established property under FIRB rules.

CE is an interesting company in that it was started by two teachers who did up houses together in their spare time, then realised that this was more remunerative than teaching. Then their accountant realised that they were making more money than him so he asked whether he could join them. From this they grew to be a quoted company with a nine-digit turnover but got a lot of stick because of their governance (three directors only) and the large directors salaries, so delisted so as not to have to account to external investors.

The 'seminars' are a carefully put together presentation that makes you think that you are being offered a sound investment. Everything said is true, but selective. You're shown graphs of population growth and Melbourne property prices, whilst of course what matters is what has happened to CE property prices. A little muddling of the guaranteed rent return and mortgage payments, skimming over the little matter of body corporate and other outgoings. All very convincing to a novice.

My first CE unit was in the City Point building, 668 Bourke Street, a high corner 2-bed unit bought off plan in 2000 for $423K. I sold it in September 2007 and net of expenses realised $415K. During the time I owned it the net yield was about 3.0%. I have stayed in the building in short-stay apartments and was very impressed by the standard - it won an award the year it was completed.

My second unit, which I still own, is a large one-bedder in Dudley Street, balcony looks towards Flagstaff Gardens. Bought off plan in 2003 for $391K. The one below with a large terrace has just been on the market for $400K, so I would guess mine would be marketed at $380K, say $360-370K net if I sold. Current yield is about 3.25% net. If I hadn't paid off most of the mortgage it would be really bad news: I'll probably cut my losses when the current tenant vacates.

So all in all anything but a good investment. The one plus was that by the time I was ready to relocate to Melbourne I had a good track record with CBA so finance for my present home was not problem.

To give credit where it's due, for both units the management by MICM has been excellent: full paperwork and prompt payments, and on each void a re-let within a week or so.

T.

 

[jcwc888]

Coming late to this thread as a new forum member I can add my own experience. I bought two Central Equity units whilst living in the UK - couldn't buy established property under FIRB rules.

CE is an interesting company in that it was started by two teachers who did up houses together in their spare time, then realised that this was more remunerative than teaching. Then their accountant realised that they were making more money than him so he asked whether he could join them. From this they grew to be a quoted company with a nine-digit turnover but got a lot of stick because of their governance (three directors only) and the large directors salaries, so delisted so as not to have to account to external investors.

The 'seminars' are a carefully put together presentation that makes you think that you are being offered a sound investment. Everything said is true, but selective. You're shown graphs of population growth and Melbourne property prices, whilst of course what matters is what has happened to CE property prices. A little muddling of the guaranteed rent return and mortgage payments, skimming over the little matter of body corporate and other outgoings. All very convincing to a novice.

My first CE unit was in the City Point building, 668 Bourke Street, a high corner 2-bed unit bought off plan in 2000 for $423K. I sold it in September 2007 and net of expenses realised $415K. During the time I owned it the net yield was about 3.0%. I have stayed in the building in short-stay apartments and was very impressed by the standard - it won an award the year it was completed.

My second unit, which I still own, is a large one-bedder in Dudley Street, balcony looks towards Flagstaff Gardens. Bought off plan in 2003 for $391K. The one below with a large terrace has just been on the market for $400K, so I would guess mine would be marketed at $380K, say $360-370K net if I sold. Current yield is about 3.25% net. If I hadn't paid off most of the mortgage it would be really bad news: I'll probably cut my losses when the current tenant vacates.

So all in all anything but a good investment. The one plus was that by the time I was ready to relocate to Melbourne I had a good track record with CBA so finance for my present home was not problem.

To give credit where it's due, for both units the management by MICM has been excellent: full paperwork and prompt payments, and on each void a re-let within a week or so.

T.

Whereabouts are you now?

 

[Tony3008]

Melbourne Docklands - a salesman's dream story: I was here on holiday in 2007 knowing that my next trip to Melbourne would be to live here, so decided to do some research towards finding somewhere to live - I had planned to live at City Point but the views were being built out. Was looking at the pics of units for sale in a just completed building when the sales agent came out and offered to show me round. I explained I wasn't in the market at that point, but like a good salesman he wasn't put off. So he showed me a couple that fitted my description of what I would be looking for in due course (2-bedders around $500K), then he said "I've got this one but it's a bit outside your price range". Within ten seconds of going on the balcony and seeing the spectacular 270 degree view my mind was made up amd somehow I managed to get the finance together. I've now been here nearly a year and have no regrets at all, save that at the time I bought there was an identical unit ten floors up but another $100K was beyond me.

The two benefits I did have from buying my CE units was that (a) when I approached CBA for finance on this place I was an established customer with a flawless record and (b) because the returns on my CE units were so poor compared with then interest rates (and no negative cash flow tax relief in the UK) that I had overpaid the mortgages like mad so had lots of equity.

I can't decide what to do with the unit I still hold - it delivers a totally trouble free 3.3% net but as said before the capital value has gone nowhere.