Hi we have 2 IPR's one in Kensington and the other in North Melbourne. Both are in 70's style blocks, one has been fully renovated, the other semi. Both have 2 bedrooms of good size with large kitchen.
Both are in nice quiet streets with majority being older style terrace housing and close to facilities / parks / schools / transport etc.
How do people feel the value will hold up in the long term given all the new apartments and developments being built? For Kensington we paid $418,000 in Aug 2010 and recently had agents out to look at selling one said 450 which may have been optimistic and the other said high 300's low 400's..
I know some people want new and shiny and investors want to buy OTP and get the stamp duty savings etc but the new apartments seem to be getting smaller and smaller. One of the agents said ours is the size of an equivalent 3 bedroom in new development. The other thing that puts me off is the build quality of some of these and the exorbitant body corp fees for all the facilities.
Are these new developments dragging prices and rents down, or encouraging more growth into the area? I had always invested on the premise that if you bought in a good area close to the city, facilities and public transport then it should be a reasonable prospect for long term growth. Have always done well with the PPOR's in the outer burbs, currently in Ivanhoe. Should have bought the block next door for $520k a few years ago and whacked 3 townhouses on it which is exactly what someone else did and made some good money. A 3 bed townhouse in our street 5 years old sold for $855,000Didn't have the funds at that time to build though.
The other issue is for Kensington the rents seem to be dropping with the competition from the new developments.
I think we originally started at $350 and are now down to $320. Should we sell or hold onto for long term? I'm inclined to hold on given what the agents are saying.
Both are in nice quiet streets with majority being older style terrace housing and close to facilities / parks / schools / transport etc.
How do people feel the value will hold up in the long term given all the new apartments and developments being built? For Kensington we paid $418,000 in Aug 2010 and recently had agents out to look at selling one said 450 which may have been optimistic and the other said high 300's low 400's..
I know some people want new and shiny and investors want to buy OTP and get the stamp duty savings etc but the new apartments seem to be getting smaller and smaller. One of the agents said ours is the size of an equivalent 3 bedroom in new development. The other thing that puts me off is the build quality of some of these and the exorbitant body corp fees for all the facilities.
Are these new developments dragging prices and rents down, or encouraging more growth into the area? I had always invested on the premise that if you bought in a good area close to the city, facilities and public transport then it should be a reasonable prospect for long term growth. Have always done well with the PPOR's in the outer burbs, currently in Ivanhoe. Should have bought the block next door for $520k a few years ago and whacked 3 townhouses on it which is exactly what someone else did and made some good money. A 3 bed townhouse in our street 5 years old sold for $855,000Didn't have the funds at that time to build though.
The other issue is for Kensington the rents seem to be dropping with the competition from the new developments.
I think we originally started at $350 and are now down to $320. Should we sell or hold onto for long term? I'm inclined to hold on given what the agents are saying.
