Apartment in Richmond, Vic

Good evening folks. First post here.

I am after some advice from people with a bit of experience in the area. I currently own a one bedroom apartment near Victoria St in Richmond. It is my PPOR. I am looking at upgrading to a bigger, one bedroom art deco apartment on Punt Rd, still in Richmond, down near the Yarra. I am after people's opinion on if this is a wise move. It is about $40,000 more expensive than my current place. The big advantage for me is it is a really nice building and only a five or ten minute walk to work. Although it is pretty quiet, I am concerned about the Punt Rd stigma when it comes time to sell.

Let me know your thoughts.

Thanks.
 
Is there a rear entrance? Punt Rd would painful to get in and out of everyday during peak hour.

I saw some good art deco units in Richmond two or three weeks ago. They're not on realestate.com anymore. Actually, nearly everything 2nd hand from a few weeks back has turned over.

The only constants are:

Charlie
Cirque
Niche

Anyone have any opinions about these developments? I know Charlie has appreciated since it came on the market 18 months or so ago.
 
Why wouldn't you try find something off the main road?

I assume it's a cost thing, but if you can stretch it, you should get something away from Punt Rd.
 
From an investing point of view, I wouldn't sell the 1st apartment to just get an upgrade down the road. You'll be up for stamp duty costs ($15,000 - $20,000) agent fees in selling the apartment (at least $5,000 but probably closer to $10,000). Then there's moving costs.

Unless you really need to get an upgrade and a bigger place I think you're better off keeping what you have and saving for an IP or another PPOR when your PPOR now can become an IP.
 
V.Ice,

What's the differences in body corp and rates between the 2 places? Will the deco place require more upkeep?

Cheers,

The Y-man
 
Hi YMan,
Haven't got the figures yet, but the agent assures me they are about the same as the current place. Don't know about maintenance, the block was refurbished by a developer about ten years ago. The block I am in (70s block) is needing more and more maintenance though, sewer/storm water problems.
 
I think I know which one you are talking about. As an owner occupier, I would see far better options in and around Richmond.

The only other thing to check, is if there is any Vic Roads overlay on the property. When looking at a commercial property on Punt Rd (admittedly down in Windsor) so about 1km+ further down towards St Kilda, there was on overlay on the property (and for a number of properties on Punt Rd I assume) for road widening, I doubt that will be the case where I think you are referring to. They just built a large commercial building just before the bridge, so I suspect they wouldn't have down that, with such an overlay on their title. Pays to check though.
 
Why not keep your apartment and turn it into an IP and rent another apartment where you want?

This way the interest you pay on the mortgage becomes tax deductable and you can deduct depreciation and body corporate fees.

THe rent you recieve should hopefully be close to the rent you pay..

You get to live where you want and become more tax effective and save on the stamp duty and agents and legal fees.

Plus if you find you don't like where you are living it is easy to move and costs next to nothing.

cheers,

RightValue
 
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