Buying in KEW (first IP in Melbourne),please help!!

[doxa5]

Hi everyone,
this is my first post on this forum, and i would really appreciate some information and advice from more experianced investors.

I am currantly looking for my first IP in Melbourne, particularly in KEW.
I am looking for 2 bed + 1 car bay apartment in small complex (max 20).
Max price to spend $450 K (line of credit).

Questions:
- is $450 K right price in this area for apartment ?
- what is the weekly rent ?
- how easy is to rent in this area ?
- any chance for capital gain grove ?

Regarding to real estate institiute of Victoria annual change is 57.5%
but quarterly change is 0 %

Waiting for your help ,Thank you very much
Doxa

 

[The Y-man]

... particularly in KEW.

Y Q in particular?

Cheers,

The Y-man

 

[alexlee]

Re whether it's the right price and what sort of rent you get, try to do some research yourself first. A quick search on the usual property websites will give you some answers.
Alex

 

[doxa5]

I do not know very much about Melbourne, but i heard Kew is good place to invest for capital geowth.

Thanks - Doxa

 

[The Y-man]

- is $450 K right price in this area for apartment ?

Seems to be a few on the market at this price range.
http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=13296193&s=vic&tm=1198737612

- what is the weekly rent ?

probalby around the $300-$320 pw mark?
http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=76439881&s=vic&tm=1198737428

- how easy is to rent in this area ?

Vacancies are quite low in inner Melb at the moment.

- any chance for capital gain grove ?

At a guess around the 7%pa mark

Cheers,

The Y-man

 

[Harris]

I have a unit in kew that i purchased in early 2002. Had virtually no growth in value since I bought it at the tail end of the last boom till around 18 months ago. Approx 50% growth in value in the last 18 months.

With the amount of capital appreciation for Kew recently, I would not be selecting it for my very first IP. Unless you are a high income earner and can negatively gear the out of pocket expenses, happy to sit out the lean times till the next wave of boom and dont mind low rental yields....

Middle and outer suburbs of melbourne offer better capital growth and rental yield prospects at this point in the current cycle.

It is a very solid, leafy, blue chip suburb with excellent rental demand and great schools and transport. My prop there has never been vacant even for a single week in the past almost 6 years, so rental wise you wont have an issue letting it quickly.

Good luck

Harris

 

[doxa5]

The Y-man and Harris, thanks for info and advice.
The Y-man, special thanks for "for sale" link. I have proposition to buy identical apartment on the same street for $450 K. ????
Over $100 K difference !!!!
Any more advises ??? - Thanks Doxa

 

[jingo]

The Y-man and Harris, thanks for info and advice.
The Y-man, special thanks for "for sale" link. I have proposition to buy identical apartment on the same street for $450 K. ????
Over $100 K difference !!!!
Any more advises ??? - Thanks Doxa

Hi Doxa5,

The link that Y-Man gave you is to a property/flat that is going to auction. It is quoted at $340,000+. (See below).

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=13296193&s=vic&tm=1198737612

It is not uncommon in Melbourne at the moment for properties to exceed the quoted price by around 20%.

However, I must clarify that I have no IP's in Kew, and do not know the area from an investment perspective.

Please do your due diligence carefully, and try looking at what similar properties have recently sold for in the area rather than relying on quoted price ranges.

I hope this helps a little.

Regards Jason.

 

[Bradsdad]

Hi Doxa5,

The link that Y-Man gave you is to a property/flat that is going to auction. It is quoted at $340,000+. (See below).

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=13296193&s=vic&tm=1198737612

It is not uncommon in Melbourne at the moment for properties to exceed the quoted price by around 20%.

Very true and sometime even higher. $340+ probably means $420K+. Guess I'll have to keep an eye out now so see what it goes for. I have a few clients at the moment that are tearing their hair out due to advertsied auction prices. It's rare to see one come in under a 20% excess of the quoted price and not rare to see around the 30+% mark. It makes you wonder about agents sometimes

Kew is a great area but the post from Harris is well worth noting.

 

[Perp]

I concur with Harris - sounds like it's a wee bit late in the property cycle to buy optimally in Kew. But if you're comfortable with negative gearing, plan to hold for the long term, and have a particular affinity for Kew, then no doubt it will still be profitable long-term (as almost any property investment is, long-term).

But if you want to buy at the best time in the cycle, I'd be looking elsewhere. Try checking out sites such as www.hotspotting.com.au, www.residex.com.au, www.propertyupdate.com.au, and reading API magazine. If you see the same suburbs mentioned as likely to boom in at least a couple of sources and then buy there, that's probably going to mean that you've done more location research than 90% of buyers

 

[our obsession]

Median House Prices-Kew 94-05

Doxa5; these are figures from the Victorian Valuer-General, they show the change and growth over the 10 year period (1994-2005):

Kew: 1994 Median House Price: $274,750.............2004 MHP: $793,000 A change of: 189%

Note: Remember it is, as the Valuer-General stated; house prices.