Apartment or Unit in Melbourne?

[feihong]

An older post worth a read

I think this old thread might be of some interest to this particular discussion:

http://somersoft.com/forums/showthread.php?t=54291

 

[starter]

That's an interesting thread feihong, wonder if those figures will still stack up today. An advantage for the inner city to me is the security of having good tenants and demand for rental, and also it's relative resiliance in tough economic times (similar to what we're experiencing now). You still have to pick the right property though, a shiny OTP apartment is not one of those.

I had a choice a few years ago, to buy an apartment in Prahran or a house in an outer suburb like Melton. I picked the arpatment and don't have any regrets at all, while the yield isn't great I have no trouble getting tenants at all. The CG has actually been reasonably solid, even these last couple of years. Nothing spectacular, but also nothing to keep me up at night.

 

[Jake Milne]

That is really interesting...

In response I've put together a table of info with data from Residex with a much more comprehensive list - feel free to come to your own conclusions.

 

[traveller]

Well to use my personal experience, bought a house 30kms from the cbd in 2002 for 130k rented it at 125pw. Today its valued at 375k and rents at 330pw. No Body corporate whatsoever.

To add to above there is even potential to subdivide the property and build at back further increasing the equity and rental yield.

Now to say that inner city properties have(or likely to) out-perfomed outer city by 3 times(as mentioned in post 2) will seem to be a stretch...