Apartments in Potts Point Sydney, good idea?

That's good money!

I'd be asking the agent if you can keep in the tenant that's renting at the moment.

Not sure what the normal rental return is, but i suggest you do some research and make sure it's around the same mark as other similar units in the area.

Hope that helps a bit?
 
Looks like a "hotel" apartment.
Be careful, because the overall size may be less than what a bank will loan money for.
also make sure rental figures are not for "holiday let", but are normal rates for long term tenants.
Pen
 
thank you both for replays, very helpful!

As it turns out it is a hotel and I'm not really interested in such investment.

What are your opinions about 1bdr units / studios in the area?
 
thank you both for replays, very helpful!

As it turns out it is a hotel and I'm not really interested in such investment.

What are your opinions about 1bdr units / studios in the area?

Yeah, i'd steer clear in that situation.

Not too sure about the units. Generally speaking, from what i've read etc, studios don't have such a great return. But because of the area it may be an exception.

I'd suggest looking around for how much studios and units sell for in the area, then looking at the rentals for the average return and working out if it's worth your while perhaps?
 
piNoob,

I follow the Potts Point/Elizabeth Bay market very closely as i have a one bedroom investment in EB.

I do believe the area is a good place to buy into, as you can achieve a strong yield and get good capital growth.

But you must be weary of what building you buy into as quality varies greatly. Studios in the area normally rent out really quickly and get very high rents, but capital growth is very hard to achieve as most purchasers struggle to get decent finance on them, because of their percieved risk in the re-sale value by the banks.

If you have the funds i would target at least a quality one bedroom or two bedder ($400 to $600k). You will still acheive a good yield and should see strong capital growth.

Fuzzboy.
 
I rented a 1.5 bedroom appt with no parking and no kitchen for $500/wk.... didn't like it 'cos I had to pay an extra $50/wk for long term parking with Wilsons and going/to from Potts Point was a major pain in the *** being so close to the city with all the traffic. Would be alright if you worked in the city or could get to work via public transport I suppose.
 
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