1st Home - Apartment in St Kilda

G

gshaheen

Hi all,

Just after general thoughts on this property as I am looking to put an offer of $340k in this week... Not quite sure why it's so cheap but the RE agent assures me there is a genuine reason for sale and the current vendor is in a bit of a bind.

Section 32 states that there are 99 apartments in this complex over 3 levels wit total yearly charges (Water, Rates and Body Corp) not exceeding $3200.

General consensus...?

http://www.realestate.com.au/property-apartment-vic-st+kilda-107609306
 
Looks alright...check the mortgage registration date and see if there are any caveats. Sometimes distressed sellers have a mortgage registered only recently, and have lots of caveats against the property.

Also - what is the internal area? Make sure it is at least 50sqm. Get the exact body corporate fees if possible. Also make sure that the car space is on title.
 
Aaron_C said:
And are you 100% sure that yours is residential??
Click to expand...

Certain... Residential is somewhat segregated from non-residential... they are on opposite sides of the building... residential apartments do not face the main road (Inkerman Street)...

What do you think Aaron? I think it's a good buy at that price for St Kilda... As you already know... tossing up between this one and unit going to auction this saturday in chelsea...
 
It sounds good actually - a 6% yield is rare. But check those things that I listed in my post above - those are critical as they affect whether you can get finance or not. Be careful, as yield can suck you in.
 
Aaron_C said:
It sounds good actually - a 6% yield is rare. But check those things that I listed in my post above - those are critical as they affect whether you can get finance or not. Be careful, as yield can suck you in.
Click to expand...

Section 32 states:

ENCUMBRANCES, CAVEATS AND NOTICES
Mortgage XXXXXXX 15/08/2007
National Australia Bank Ltd

Any encumbrances created by Section 98 Transfer of Land Act 1358 or Sectuib 24 Subdivision Act 1988 and any other encumbrances shown or entered on the plan set out under DIAGRAM LOCATION below

DIAGRAM LOCATION
See XXXXX for further details and boundaries

ACTIVITY IN THE LAST 125 DAYS
Nil
 
Aaron_C said:
Looks alright...check the mortgage registration date and see if there are any caveats. Sometimes distressed sellers have a mortgage registered only recently, and have lots of caveats against the property.

Also - what is the internal area? Make sure it is at least 50sqm. Get the exact body corporate fees if possible. Also make sure that the car space is on title.
Click to expand...

Also, internal area is exactly 50sqm... obviously someone was thinking when they built this place ;)

There is definitely a car space on the title...

I do have the Body Corp fees that were charged last quarter and the latest minutes say that they are not due to change this year. The Vendors statement does however state the the total of Water, Rates and Body Corp will not exceed $3200... Body Corp fees currently set up $460 per quarter

Still torn between St Kilda vs Chelsea... St Kilda definitely wins on yield but Chelsea could win on CG
 
Okay that sounds fine. If you are 100% confident with finance being approved then you can make an offer on the St Kilda property. Maybe, to get the best of both worlds, what you can do is:

Make an offer for $X for the St Kilda place on Thursday. Say they accept it on Friday. You have 3 business days as a 'cooling off period', where you can pull out with only a 0.2% or $100 penalty, whichever is higher. Make sure you don't get legal advice yet otherwise you are not entitled to this.

Then go attend the Chelsea auction on Saturday, and if you can get it for a better price than what you expected, make a bid and obtain the property. Then cancel the St Kilda purchase with minimal penalty.
 
Aaron_C said:
Okay that sounds fine. If you are 100% confident with finance being approved then you can make an offer on the St Kilda property. Maybe, to get the best of both worlds, what you can do is:

Make an offer for $X for the St Kilda place on Thursday. Say they accept it on Friday. You have 3 business days as a 'cooling off period', where you can pull out with only a 0.2% or $100 penalty, whichever is higher. Make sure you don't get legal advice yet otherwise you are not entitled to this.

Then go attend the Chelsea auction on Saturday, and if you can get it for a better price than what you expected, make a bid and obtain the property. Then cancel the St Kilda purchase with minimal penalty.
Click to expand...

Just had a look at recent sales in this apartment block and 14 of them have sold in the past 12 months... Does this sound a bit excessive to you...? 14 sold out of 99 apartments...
 
I know that block well.

There is an Aldi store in the bottom.

The surrounding area is ok, not the best part of st kilda (east ?) but not the worst.

cheers
 
peteb said:
I know that block well.

There is an Aldi store in the bottom.

The surrounding area is ok, not the best part of st kilda (east ?) but not the worst.

cheers
Click to expand...

Thanks for the contribution PeteB.

Is there any gaping area of concern for the area. I know that it joins on to Grey street which is known for the prostitutes, but this is just part and parcel of living in St Kilda I would've thought.

Still trying to figure out why so many of them have sold in the past year. Will talk to the RE agent...
 
gshaheen said:
Thanks for the contribution PeteB.

Is there any gaping area of concern for the area. I know that it joins on to Grey street which is known for the prostitutes, but this is just part and parcel of living in St Kilda I would've thought.

Still trying to figure out why so many of them have sold in the past year. Will talk to the RE agent...
Click to expand...

50sqm for a 2 bed is tiny. They must be miniscule rooms. Have you seen the plans?

I know this area well. I own a couple of houses in St Kilda East . Overall its not a bad location. There are quite a few new developments going up in the same area. e.g post office development. Have you investigated these? Are you specifically looking for a 2 bed.

http://www.domain.com.au/Property/For-Sale/Apartment/VIC/St-Kilda/?adid=2008747526

Also it is a good 600 meters from the beginning of Grey Street. Not close enough to make a difference, especially when you have the busy st kilda road separating you. Grey St is not what it used to be now. The ladies have moved onto other parts of St Kilda because of the increased police presence.
 
50sqm is too small for a 2 bed. that would be bare minimum for a 1 bedder to achieve some decent capital gain as an investment.

there are other 2 bedders ard melbourne which are 100-110 sqm - which are double the size. location vs size vs views are all equally important factors but if it is 60-65sqm then would be considering it. otherwise - best to just avoid unless it is really a super fire sale.
 
simo74 said:
50sqm for a 2 bed is tiny. They must be miniscule rooms. Have you seen the plans?

I know this area well. I own a couple of houses in St Kilda East . Overall its not a bad location. There are quite a few new developments going up in the same area. e.g post office development. Have you investigated these? Are you specifically looking for a 2 bed.

http://www.domain.com.au/Property/For-Sale/Apartment/VIC/St-Kilda/?adid=2008747526
Click to expand...

Thanks simo74.

Keeping CG and yield in mind and considering that I am looking at St Kilda, do you think that a large 1br would be a better idea than a squashy 2br? The reason I am looking at this one is simply because it looks to be a great deal for a 2br...
 
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