1st Home - Apartment in St Kilda

[gshaheen]

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.

With regards to your comment on Capital Growth, I agree and disagree... If you want Capital Growth, the obvious answer is a large block of land in a developing area. Comparitively I wouldn't expect anything like this from an apartment in St Kilda (especially given that it has already become such an established area).

My thoughts are that an apartment purchase in St Kilda is an investment with mainly yield benefits as opposed to Capital Growth. The lot doesn't sit on a huge block of land and shares large parcels of common property with hundreds of other apartments.

I am still of the opinion that the apartment I linked to in my first post would be a great buy sub $340,000.

 

[Melbournian]

i agree and disagree

i have lived in 10 different apartments across melbourne alone and i know a lot about apartment living, selling and buying. And buying a block of land doesn't necessary equate to capital growth just by doing nothing. i have done both as i also have bought land etc. it also really depends on what stage you are in your life and how much funding you have.

you maybe a 250K per year person looking to negatively gear your property to reap taxation benefits which i would say yeah go for it.

But You can manufacture capital growth in an apartment as oppose to holding block of land with holding costs. apartments have a yield which may be positive subject to your deposit. and in some apartments you can make a 60-100K in a few months through renovation. and have minimal holding costs due to the it takes only a few weeks to do so and you do not have to worry about your yield dropping.

Unless you doing a multi development - it's a different game altogether.
as i said you need to be comfortable with your investment taking into account your income level, deposits whereby the st kilda apartment choice. yield, 50sqm and location of st kilda maybe ideal for you. my opinion is just to avoid it.

 

[simo74]

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...

That i cannot really comment on. I've never owned apartments only houses. It would depend on how well designed the layout is. Personally i would be a little concerned with a 2 bed being 50sqm however that being said it could be a good little earner.

Is there any reason you are considering offering $340k? Its been on the market for nearly 3 months and has been reduced by $20000 already. I would be lowballing it at say 310 -315k. You never know your luck.

 

[gshaheen]

That i cannot really comment on. I've never owned apartments only houses. It would depend on how well designed the layout is. Personally i would be a little concerned with a 2 bed being 50sqm however that being said it could be a good little earner.

Is there any reason you are considering offering $340k? Its been on the market for nearly 3 months and has been reduced by $20000 already. I would be lowballing it at say 310 -315k. You never know your luck.

I wasn't aware that it has been on the market for 3 months - where did you get that information from?

The RE agent advised that an offer has been put in writing today for between $350k and $370k but couldn't tell any of the people at the open what the price was.

I doubt that he is being truthful however, a mortgagee auction took place on one of these properties last month and it sold for $335k, hence I verbally offered $335k if the deal falls through. It's a price that I would be happy with and believe that I would get a reasonable return for the offer.

If I don't get it, I will attend the Chelsea auction this weekend and potentially bid on that. If I don't get either, I may start to consider 1br apartments in St Kilda or 2br apartments in Caulfield area.

 

[Tony3008]

I wasn't aware that it has been on the market for 3 months - where did you get that information from?

http://www.refindhouseprices.com will tell you this, and also shows reductions in asking price.

 

[simo74]

I wasn't aware that it has been on the market for 3 months - where did you get that information from?

The RE agent advised that an offer has been put in writing today for between $350k and $370k but couldn't tell any of the people at the open what the price was.

I doubt that he is being truthful however, a mortgagee auction took place on one of these properties last month and it sold for $335k, hence I verbally offered $335k if the deal falls through. It's a price that I would be happy with and believe that I would get a reasonable return for the offer.

If I don't get it, I will attend the Chelsea auction this weekend and potentially bid on that. If I don't get either, I may start to consider 1br apartments in St Kilda or 2br apartments in Caulfield area.

Agent is full of it.

http://www.onthehouse.com.au/report...it_226,135_Inkerman_Street_ST_KILDA_VIC_3182/

http://www.refindhouseprices.com/viewad/8124685/226/135 Inkerman Street

 

[gshaheen]

This forum just keeps on giving... thanks simo74 and tony3008...

 

[Bigtone]

there is a reason it is cheap and always will be compared to others in the area and that is because it is a crap unit in a crap building.

as for capital growth coming fom a big block in a developing area i couldn't disagree more.

 

[Property Meister]

what posessed the agent to list at $430 at the start I have no idea, there are like 2 on the same floor advertised at about $350, a couple at $420k (1bdr) , but I assume they are the serviced apartments, hence the price

 

[gshaheen]

there is a reason it is cheap and always will be compared to others in the area and that is because it is a crap unit in a crap building.

as for capital growth coming fom a big block in a developing area i couldn't disagree more.

Can you elaborate Bigtone? Where do you live?

 

[gshaheen]

what posessed the agent to list at $430 at the start I have no idea, there are like 2 on the same floor advertised at about $350, a couple at $420k (1bdr) , but I assume they are the serviced apartments, hence the price

Apartments aren't serviced Property Meister...

 

[Melbournian]

just on stats alone it seems like a good buy and you have a carpark. Seems like you're deadset i would keep putting low ball uncod offers if you were serious.

402 135 Inkerman St Vic 3182 $465,000 20/08/2011 Auction Sale 2 2 0
321 135 Inkerman St Vic 3182 $437,500 20/08/2011 Auction Sale 2 2 0
222 135 Inkerman St Vic 3182 $375,000 30/07/2011 Auction Sale 2 1 1
313 135 Inkerman St Vic 3182 $475,000
06/07/2011 Private Sale 2 2 0
412 135 Inkerman St Vic 3182 $415,000 21/05/2011 Auction Sale 2 2 0
223 135 Inkerman St Vic 3182 $482,000 04/04/2011 Private Sale 2 1 0
219 135 Inkerman St Vic 3182 $385,000 05/02/2011 Private Sale 1
401 135 Inkerman St Vic 3182 $490,000 13/12/2010 Private Sale 3 2 0
123 135 Inkerman St Vic 3182 $560,000 04/12/2010 Auction Sale 2
117 135 Inkerman St Vic 3182 $375,000 03/05/2010 Private Sale 2 1 1
124 135 Inkerman St Vic 3182 $465,000

 

[Property Meister]

Apartments aren't serviced Property Meister...

ok fair enough.

222 135 Inkerman St Vic 3182 $375,000 30/07/2011 Auction Sale 2 1 1
223 135 Inkerman St Vic 3182 $482,000 04/04/2011 Private Sale 2 1 0

based on these two pretty much being on the same floor and right next to 226,

your one is a 2 1 1, that you can pickup for $320k

so 222 sold for $55k more
so 223 which DOESnt have a carpark sold for $482k 7 months ago, ($162k more)

and $375k being the cheapest sale recently,

all on paper seems like a damn bargain!

what sort of bodycorp/rates/yield?

 

[gshaheen]

ok fair enough.

222 135 Inkerman St Vic 3182 $375,000 30/07/2011 Auction Sale 2 1 1
223 135 Inkerman St Vic 3182 $482,000 04/04/2011 Private Sale 2 1 0

based on these two pretty much being on the same floor and right next to 226,

your one is a 2 1 1, that you can pickup for $320k

so 222 sold for $55k more
so 223 which DOESnt have a carpark sold for $482k 7 months ago, ($162k more)

and $375k being the cheapest sale recently,

all on paper seems like a damn bargain!

what sort of bodycorp/rates/yield?

Too late now... Sold for $365k on the day of the open (Wednesday)...

http://www.realestate.com.au/property-unit-vic-chelsea-108314191 < got my eye on this one for tomorrow...

 

[gshaheen]

Very excited - Could own my first home tomorrow!

 

[The Y-man]

Very excited - Could own my first home tomorrow!

Good luck!

The Y-man

 

[gshaheen]

Good luck!

The Y-man

Thanks Y-man - will let everyone know how I go... First time bidding at an auction too! Set my limit... ready to rock and roll...

 

[Ed Barton]

Too late now... Sold for $365k on the day of the open (Wednesday)...

http://www.realestate.com.au/property-unit-vic-chelsea-108314191 < got my eye on this one for tomorrow...

hope the tenants like blue.

 

[gshaheen]

Disappointed - I was played off against a non-bidder!

Hi all - i was top bidder at the auction at the Chelsea property today, however it was passed in. We negotiated up to what I believed was a fair price however they were looking for $12k more.

It was frustrating to see that they had begun talking with another woman after the auction who was willing to put in an offer subject to bank valuation.

They played me off against her saying that she would offer $340k vs my $328k.

Is it normal (or even legal) to take even be considering her offers at the end of the auction given that:
A - I should be the only party they are negotiating with at the end of the auction
B - She wasn't even involved in the auction - I.e. she didn't place a bid...

 

[Aaron_C]

Don't worry....they will not accept an offer subject to finance because any contract within 3 days of an auction is under auction conditions (i.e. unconditional)...

And yes, you've made your offer, they rejected it, so they can now negotiate with whoever they want.