2 Bedroom Unit near refinary in Altona North, VIC. Have i made the right decision?

[dehgam]

I will appreciate opinions of members of this forum regarding a unit that we have decided to purcahse. Offer is accepted. Cooling of period is still on. It is located on Berkeley Crescent, Altona North Victoria 3025. Even though this is our second IP, we are still not 100% sure whether we have made the right decision and will appreciate your opinions on this.

In our views, the following are the advantages and disadvantages:

Advantages:

- Unit in good condition with a good tenant. Lock in garage, 2 good size bedrooms, seperate laundry.
- Within our budget of $350K
- Newport train station is 4 kms
- 15 kms from Melbourne CBD
- Even though we dont live in this area, we have been to the area many times and it has got all the facilities near to the unit. The fitness centre, schools, child care, shopping centre, recreation parks, etc.

Disadvantage:

- The mobil refinary...The refinary is less than 1 kms from this unit.
- Very near to the industrial area on Kororoit Creek Road.

The close proximity to industrial area is our main concern. But we plan to keep this unit for at least next couple of decades and hence the big question. Have i made the right decision?

 

[buzzlightyear]

More info required - What are the numbers ie rent, purchase price, how many units in the block, owners corp fees, comp sales

 

[Wunderbar]

Are you crazy? Why do you want to buy near a refinery? Don't forget when your next purchaser comes in he's going to think the same thing...plus the valuer will give you a hard time due to the noise/pollution/proximity to the refinery. Cancel the contract ASAP

 

[Melbournian]

would stay far away from altona north - dun see much value in that area.

 

[dehgam]

hi buzzlightyear:
Rent - 280 per week (confident that it can be increased to 300 pw in July).
4 units in the block. No body corporate. The owners share the insurance. purchase price 320K + stamp duty.

comparable sales in the same steet:
http://www.oldlistings.com.au/real-estate/VIC/Altona+North/3025/buy/1/BERKELEY

 

[buzzlightyear]

I guess being close to the Refinery, you will always have imo, people wanting to rent something affordable. This seems to fit the build.

The issue is, will the demographics in the area, council and state government investment in the area, start to shift to maintain the upward path fo rentals and capital growth above the norm? I don't know the area well enough to make an assessment.

On the numbers you provided, around a $6000k pa loss based on current IR, 80%LVR and a rental of $300. It doesn't stand out from that perspective.

Buyers remorse is often cited after asking a substantial purchase, but if you have doubts after due consideration, and it seems you do, I, in your position would withdraw.

 

[Melbournian]

spot on buzz!

 

[Property Meister]

for the experts
is there any hope of the refinery disappearing?

and if so, would it be minimum 5 years, 10?

 

[Propertunity]

is there any hope of the refinery disappearing?

Yeah sure. Once we have been weened off our need for turning oil and other fossil fuels into speed.

..and if so, would it be minimum 5 years, 10?

You'll need to ask the Greens, or more specifically, Christine Milne. They're running the country now.

 

[Wunderbar]

Yeah sure. Once we have been weened off our need for turning oil and other fossil fuels into speed.

You'll need to ask the Greens, or more specifically, Christine Milne. They're running the country now.

haha - succinctly put!

 

[dehgam]

thanks everyone for their opinion. call me crazy but i have decided to go ahead with the purchase and review the decision in 5 years time.