1 bedroom apartment.. to buy or not to buy?

[Bryce]

Hey all,

I have hacked by partners account lol and thought id post a few questions i have about a purchase we are thinking of. We are looking at purchasing a 1 bedroom apartment in cranbourne newly established in an estate for about 200,000 (as i am a uni student and he is a 2nd yr apprentice) so that price range is good for us to start off. Its also near shops main access to the westernport hwy (therefor easy access to freeway) which i think are a few great reasons to purchase.???

Bryce has said that he wants to read a few books first that people have requested, to get an idea of what our best option is (which is great)
We have been going back and forth in the past 2 or so weeks saying yes or no! lol

So in relation to that i wanted to know what your personal opinions or experiences are? because any insight would be good at the moment just incase there are things we aren't taking into consideration because buying is a big step (lol specially in our relationship) and specially being a 1 bedroom, the big issue which halts us in purchasing is the fact it is only 1 bedroom. But with the price range, the FHOG due to it being a new dwelling makes it that little bit harder lol

Thanks all, appreciate any responses

Deborah

 

[tess85]

Hi Deb!

I remember Bryce posted a few days ago about good books to read... I replied on that thread too! But why should Bryce get to have all the fun reading the property investing books... you should definitely check them out too.

Re: Cranbourne, I'm not from VIC so I can't comment, but I do think it's important to thorougly know what you're getting into, hence reading some books would be a great start

do you know whether you can obtain finance for the $200k purchase? have you talked to a broker? Because it can be hard without an established full time job. (tell me about it... hubby and I had to wait till we finished uni and had a job before we could buy)

 

[The Donners]

Hi Deb!

I remember Bryce posted a few days ago about good books to read... I replied on that thread too! But why should Bryce get to have all the fun reading the property investing books... you should definitely check them out too.

Re: Cranbourne, I'm not from VIC so I can't comment, but I do think it's important to thorougly know what you're getting into, hence reading some books would be a great start

do you know whether you can obtain finance for the $200k purchase? have you talked to a broker? Because it can be hard without an established full time job. (tell me about it... hubby and I had to wait till we finished uni and had a job before we could buy)

... and the younger you are the harder it is. My fiance was 22 when we bought our first house, I was 26, I'd been in the then current full-time job for 2 months and she'd been in hers for 12 months. They never once questioned my employment record etc. but for my fiance they wanted blood. They even asked for a copy of her qualifications.

 

[Bryce]

hey all,

I have been reading a few things too, in between uni and all the assignments lol its hard to wrap your brain around it all but i'm happy to help where i can, see i'm god with budgeting and bryce is the researcher lol

Yes we are currently talking to RAMS home loan, they do a fast track home loan but Bryce's parents have said they are happy to go garantor to help us out to get started, so i guess thats a better chance?

I am 24 and cant wait to jump in to property as i am not getting younger lol and just wanna start, and bryce is 22 this year so i think he is at a great age to get it to property too.. hopefully we can!

Its such a big decision and its hard because i dont start full time work until i finish uni end of next year, finally then i will be a teacher!!

But yes i think research is the best thing at the moment in regards to the 1 bedroom apartment, i'm all for it but i don't want to make a mistake lol

Thanks guys

 

[Luv2Travel]

But yes i think research is the best thing at the moment in regards to the 1 bedroom apartment, i'm all for it but i don't want to make a mistake lol

I think it's great you're both so motivated to get into property, however some things I'd be considering are, why do you want to buy right now? You are still studying, so are you basing spending $200K on what you will be able to pay for once you are both working full time, or is this just what the banks will give you at the moment as a student and apprentice?

Given that Melbourne has just had a boom, and many say not to rush into Melbourne (must admit I'm going contrary to that advice), and with interest rates rising, if I were you, I'd probably wait a bit longer and keep saving. And then when you both have full time incomes (provided of course you can afford it, never over extend yourselves) look at getting a house for around $300K. I must admit I don't know Cranbourne that well, but I'd wonder at how much potential a 1 bedroom apartment would have out there.

All I'm saying is, don't rush into it just because you feel you 'need to be in the property market right now'. I know someone who could only afford student accommodation at the time so went ahead and bought straight away instead of saving a bit more. That's biting her in the @rse at the moment, as the capital growth has been close to 0% in a few years (yield is good though), and even though she's paid a good chunk off the loan, no banks will look at the equity in it so she can use it to buy another property.

 

[K_Raheja]

Bryce

1 bdr Apt in Cranbourne doesn't sound appealing in terms of CG. If I were you I'd rope in a BA and have them source me a Apartment in Frankston/Seaford,Glenroy & surrounds instead of Cranbourne.

Good Luck !

 

[Bryce]

Thanks for all the feedback all, pretty sure we will wait a bit more then. The reason we were looking at 200k now was because thats pretty much what we estimated at the moment to what we can afford.

But i guess we have to be patient more than anything if we want to make a informed and right decision.

We have saved a fair bit over the year as we both still live at home so were just going to put away more now then look again in a yr or so i guess, unless something really good pops up that we dont doubt lol

Thanks again all!!


Deborah

 

[Peter Parker]

Bryce

1 bdr Apt in Cranbourne doesn't sound appealing in terms of CG. If I were you I'd rope in a BA and have them source me a Apartment in Frankston/Seaford,Glenroy & surrounds instead of Cranbourne.

1br & 45km from CBD @ $200k?

Unless it's a very special 1br, one can certainly do better, eg

* 2br & 30km from CBD @ 215k http://www.domain.com.au/Property/For-Sale/Apartment/VIC/Werribee/?adid=2008368774

Is far far better value given it's walking distance to everything, near-river location and garage. Or pay $30-40k more for a nearby 3br house.

* 1br & 15km from CBD @ $210k http://www.domain.com.au/Property/For-Sale/House/VIC/Sunshine/?adid=2008302789

Despite the area it at least offers closer-in convenience.

 

[Bryce]

Yes thats so true on relation to the distance and is better value for money but the only thing is and i should have mentioned it earlier is that because it is our first home we will be receiving the FHOG and looking at new dwelling we are eligible for the 18k, also; and mainly we need to therefore live in it for 6 months so need something on the south east side of the suburbs due to work and uni etc.

but will be keeping an eye out for something with a bit more value to its renters

Thanks guys love the feedback its been great help !


Deborah

1br & 45km from CBD @ $200k?

Unless it's a very special 1br, one can certainly do better, eg

* 2br & 30km from CBD @ 215k http://www.domain.com.au/Property/For-Sale/Apartment/VIC/Werribee/?adid=2008368774

Is far far better value given it's walking distance to everything, near-river location and garage. Or pay $30-40k more for a nearby 3br house.

* 1br & 15km from CBD @ $210k http://www.domain.com.au/Property/For-Sale/House/VIC/Sunshine/?adid=2008302789

Despite the area it at least offers closer-in convenience.

 

[keneth]

personally if i was looking to buy at 200k now i'd be looking regional cities. ballarat or bendigo, or even launceston.

12 months ago 1 bedroom units in sunshine were 130-140k. i'd say the bottom end of the market in cbd's have already been given massive stimulus through lower interest rates, and also government grants.

I have also read that in melbourne there are many apartments planned over the next few years.... this will increase supply you would think for 1 bedroom units...

this may increase supply in this particular section of the market giving more choice. I would just be cautios about where i was buying 1 bedroom units. now...check for planning in the areas.

E.g Southport in queensland is flooded with them and are discounted heavily at the moment.

i have followed 1 bedroom market most are selling 100k more than they were 12 months ago.

 

[Intrinsic_Value]

Hey all,

I have hacked by partners account lol and thought id post a few questions i have about a purchase we are thinking of. We are looking at purchasing a 1 bedroom apartment in cranbourne newly established in an estate for about 200,000 (as i am a uni student and he is a 2nd yr apprentice) so that price range is good for us to start off. Its also near shops main access to the westernport hwy (therefor easy access to freeway) which i think are a few great reasons to purchase.???

Bryce has said that he wants to read a few books first that people have requested, to get an idea of what our best option is (which is great)
We have been going back and forth in the past 2 or so weeks saying yes or no! lol

So in relation to that i wanted to know what your personal opinions or experiences are? because any insight would be good at the moment just incase there are things we aren't taking into consideration because buying is a big step (lol specially in our relationship) and specially being a 1 bedroom, the big issue which halts us in purchasing is the fact it is only 1 bedroom. But with the price range, the FHOG due to it being a new dwelling makes it that little bit harder lol

Thanks all, appreciate any responses

Deborah

My opinion:
if you want an apartment you go inner inner city, like truely inner city, like several train stations from the CBD, why? because of scarcity.
Whats the price differential between an apartment and a house in the inner city, whats the differential in the median suburbs, whats the differential in the outer suburbs. In my opinion the only time to buy apartments outside of the inner city is when they are totally cash flow postive with a 2% borrowing rate increase buffer.

 

[Intrinsic_Value]

If you cant afford a house in the outer suburbs, or an apartment in the inner suburbs, YOU WAIT and keep saving.

 

[Peter Parker]

If you cant afford a house in the outer suburbs, or an apartment in the inner suburbs, YOU WAIT and keep saving.

If an apartment is nearly as dear as the house (most common in outer suburbs) then I'd agree that the latter is better value.

But apart from that, there are many owners of apartments in middle and outer suburbs such as Mentone, Sunshine and even Frankston who bought when they could (rather than saved) and have enjoyed excellent capital growth.

 

[Intrinsic_Value]

If an apartment is nearly as dear as the house (most common in outer suburbs) then I'd agree that the latter is better value.

But apart from that, there are many owners of apartments in middle and outer suburbs such as Mentone, Sunshine and even Frankston who bought when they could (rather than saved) and have enjoyed excellent capital growth.

because the whole market has shown great growth.

When the going gets tough, and one day it will, the wolves will be revealed in the flock of sheep.