Brisbane and Perth - what about these units?

Y

YPG

I am not in the position to buy currently, and won't be again for at least 6-12 months but I still like to have a look around realestate.com.au and check out some listings and short list some that I like - even if I know that they will be gone by the time I am ready again. For this search I was looking at:

Brisbane - because I know Brisbane well and I think that there are some good buying opportunities now and hopefully a positive outlook in the medium to long term.

Perth - I have been researching a lot about Perth lately and it appears that it looks like a solid bet over the next few years. Population growth and demand for housing looking to be fairly strong too.

That said I am looking for 2 bedroom apartments under $325-350k that I can see great potential to be renovated. I look specifically at size, layout, street appeal and a good skeleton for a cheap but effective cosmetic renovation (I like solid brick as well as older units that look like they could be easily redone on the outside and look much newer - some of the older architecture no matter how hard you try it still sticks out). I want to find units close to transport within 4-10km of the CBD. Preferably older stock with less than 10 in complex. No pool or elevators, etc.

What are peoples opinions about the following three - if I was in the position to buy right now I would seriously consider further investigating and possibly making an offer 5-10% lower than asking price.

http://www.realestate.com.au/property-apartment-wa-west+leederville-111097707

http://www.realestate.com.au/property-unit-qld-hamilton-110913975

http://www.realestate.com.au/property-unit-qld-annerley-111231371

Cheers,
YPG
 
starter said:
What's the likely rental for the Brissie apartments YPG?
Click to expand...

Just having a rough guess for both

Hamilton - after a 5-10k reno - perhaps $360-390 a week

Annerley - after a 5-10k reno - perhaps $340-375 a week

Not really sure, could be a bit off
 
In relation to that West Leederville IP, with a unit median for the area of $215k and an asking price of $350k I'd be giving that one a wide berth.
 
Rixter said:
In relation to that West Leederville IP, with a unit median for the area of $215k and an asking price of $350k I'd be giving that one a wide berth.
Click to expand...

Won't that include 1 bed and studio prices? I'm not really looking in the area, so I don't know, but I reckon it's not bad for a 2 bedder. would love to see the square meterage, given he's using the words "large" and "double" a bit.
 
Rixter said:
In relation to that West Leederville IP, with a unit median for the area of $215k and an asking price of $350k I'd be giving that one a wide berth.
Click to expand...

+ it looks like an older complex from the 70's with the shared landings that are hitting the time when they need major maintenance items like roof replacements etc - make sure you check the strata notes and sinking fund status as the last thing you want to do is buy then get hit with a special levy for 20k a pop. I'd definatly pass on it mediocre with limited reno potential and possible risks and no depreciation - you can get 2 bedroom stock in the Joondalup CBD precinct a lot newer (with depreciation) and near all amenities for the same price and a better return.
 
Last edited:
FormerLurker said:
+ it looks like an older complex from the 70's with the shared landings that are hitting the time when they need major maintenance items like roof replacements etc - make sure you check the strata notes and sinking fund status as the last thing you want to do is by then get hit with a special levy for 20k a pop. I'd definatly pass on it mediocre with limited reno potential and possible risks and no depreciation - you can get 2 bedroom stock in the Joondalup CBD precinct a lot n=ewer (with depreciation) and near all amenities for the same price and a better return.
Click to expand...

Some interesting points lurker. I've bought two houses but never an apartment, unit or townhouse yet. Obviously a number of things I need to get a better understanding of such as some of the points youve made about strata notes, sinking fund, unforeseen fees, etc.

I do think that I disagree with limited reno potential though - by the pictures it looks to have a bit of size and a decent layout. New vinyl flooring, paint and cheap kitchen would transform it.

I will have to have a look at the Joondalup CBD area than - I don't really know much about the suburbs of Perth. I just liked this one because of the close prox to the city train and the 4-6 hospitals that are close by and also on the train line.

Now this may be a silly question so bare with me - but what exactly do you mean by landing? I am not sure what you mean? I am thinking of balconies, is this correct? If this is the case I can't see any on street view where you can get a rough view of each side of the building.

Good point about the depreciation but the newer stock seems to be smaller and has higher bc fees.

Thanks for your comments
 
Rixter said:
In relation to that West Leederville IP, with a unit median for the area of $215k and an asking price of $350k I'd be giving that one a wide berth.
Click to expand...

I don't put a great deal of weight on median price. Too often I think it is misleading and people rely on it too much. I mean look back to West Leederville in January 2012 the median unit price was $1,522,500.
 
Lest Weederville :)) ) has a bucketload of studio-above-garages recently converted and sold off.

this skews the price substantially - and doesn't mean that a 2 or 3 bed unit proper is worth anywhere close to $215k.

if you can get me a unit in WL for that much, i'll take 10 thanks.
 
YPG said:
Some interesting points lurker. I've bought two houses but never an apartment, unit or townhouse yet. Obviously a number of things I need to get a better understanding of such as some of the points youve made about strata notes, sinking fund, unforeseen fees, etc.

I do think that I disagree with limited reno potential though - by the pictures it looks to have a bit of size and a decent layout. New vinyl flooring, paint and cheap kitchen would transform it.

I will have to have a look at the Joondalup CBD area than - I don't really know much about the suburbs of Perth. I just liked this one because of the close prox to the city train and the 4-6 hospitals that are close by and also on the train line.

Now this may be a silly question so bare with me - but what exactly do you mean by landing? I am not sure what you mean? I am thinking of balconies, is this correct? If this is the case I can't see any on street view where you can get a rough view of each side of the building.

Good point about the depreciation but the newer stock seems to be smaller and has higher bc fees.

Thanks for your comments
Click to expand...

A lot of older apartment blocks have a long exposed external landing that acts as the "hallway" to each apartments entrance - I suspected that leaderville complex would have such a beast (think UK style estates). An undesirable trait IMO.

In terms of renovation their is potential to renovate the internals especially the large bathroom but you'd be stuck with a tarted up unit in what looks to be a somewhat rundown older complex with the unrenovated units around you setting the buy/sell prices and rents to a degree for you i.e. dragging yours down.
 
Ahh yes we were on the same page. Yeah I am really not a fan on the shared landings. It does appear that this one doesn't have one though as you look on street view but interesting enough its pretty hard to locate the entrance as well. Completely agree with you that they drag the desirability right down.

Yeah good point about having a renovated unit that can really dragged down by the crapper ones where nothing has been done and are selling cheap. Obviously need to think about it a bit more. Thanks for bringing more points up hah
 
YPG said:
I don't put a great deal of weight on median price. Too often I think it is misleading and people rely on it too much. I mean look back to West Leederville in January 2012 the median unit price was $1,522,500.
Click to expand...

I agree.....one must conduct their DD on more than just one data source. Median's can be skewed due to number of props sold and type sold for a reported period. Even the formula's for obtaining the median price varies from one data supplier to another.
 
YPG said:
I am not in the position to buy currently, and won't be again for at least 6-12 months but I still like to have a look around realestate.com.au and check out some listings and short list some that I like - even if I know that they will be gone by the time I am ready again. For this search I was looking at:

Brisbane - because I know Brisbane well and I think that there are some good buying opportunities now and hopefully a positive outlook in the medium to long term.

Perth - I have been researching a lot about Perth lately and it appears that it looks like a solid bet over the next few years. Population growth and demand for housing looking to be fairly strong too.

That said I am looking for 2 bedroom apartments under $325-350k that I can see great potential to be renovated. I look specifically at size, layout, street appeal and a good skeleton for a cheap but effective cosmetic renovation (I like solid brick as well as older units that look like they could be easily redone on the outside and look much newer - some of the older architecture no matter how hard you try it still sticks out). I want to find units close to transport within 4-10km of the CBD. Preferably older stock with less than 10 in complex. No pool or elevators, etc.

What are peoples opinions about the following three - if I was in the position to buy right now I would seriously consider further investigating and possibly making an offer 5-10% lower than asking price.

http://www.realestate.com.au/property-apartment-wa-west+leederville-111097707

http://www.realestate.com.au/property-unit-qld-hamilton-110913975

http://www.realestate.com.au/property-unit-qld-annerley-111231371

Cheers,
YPG
Click to expand...

I am familiar with the property in W/Leederville, I don't like the location, there are few of these older type units on this street and there is always one of these on the market at any given time.

This would probably be a better option which sold recently $368k

http://reareports.realestate.com.au...derville-wa-6007/myrp-490?propertyId=13535177
 
Annerley is on my radar too.. although I'd be looking for a slightly better yield than the one in the link. In the $330k range you'd want a spacious rooms with built ins, large balcony or possible ground floor terrace would be even better. A second bathroom is also possible.. quiet street would be a must, close to transport.

I think the better yielding ones are in the $280k-$290k range with a $5k reno, which should be able to rent for $350/wk. You may lose out on depreciation, but the yield and low BC fees will more than make up for it. Often the selling agents can underquote the rental possibilities.. because they don't know what they can really go for if rented through a good property manager. ;)
 
I agree with Rixter give Cambridge Street a wide berth. Maybe have a look North Perth, Highgate, Mt Lawley these areas are pretty hot at the moment.
Cheers
 
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