Buying in Yarraville, Victoria

[skyash]

Hi All,

Suffering from a bit of first IP buyer's nerve and need some wise words from those who've been there and done it.

I've done a bit of research on Yarraville on the net and also on this forum and there's a lot of good talk about the suburb.

In light of that we decided to go and see this one bedroom unit on Williamstown Road advertised for $229,500.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=54015227&s=vic&snf=rbs&tm=1244271995

It's a private sale and we've been advised by the Agent to put forward an offer if we're interested (because it's going to be sold by the end of the day). Is the price range ($229,500) right for a one bedroom unit in the area (just don't want to be overpaying)?

I found a few recent sold one bedroom properties in Yarraville below:

9/18 Tongue St, Yarraville Unit 4 Apr 2009
Auction $245,000

Sold for $211,000 Saturday 16-May-09
1/37 SOMERVILLE ROAD YARRAVILLE

Seems to be a big spread in price no doubt due to the location and condition of the unit. I've also inspected a few other one bedroom units in Yarraville and the Agents were asking for $240K+

Any pro's and con's about Yarraville or in particular this one bedroom unit? We are looking for a mix of capital growth and rental yield and Yarraville seems to offer this. Agent says we can expect up to $220/week in rent for this one.

The figures seem to be very good for Yarraville in terms of long term growth.

http://www.investsmart.com.au/property-research/VIC/3013/Yarraville.asp

Median Price $360,000
12 Month Price Growth 1.0%
Rental Yield 3.8%
Long-term Trend 14.23%

Any input would be greatly appreciated.

Thanks.

 

[Propertunity]

skyash,

You've done your research. You have comparable sales. Just do it!

 

[zayne]

I noticed this one come up in my searchs as well. Thing that turned me off this one was that it was on the main road. Very noisy with lots of trucks driving down there constantly.

 

[THEHEATH]

They aren't bad sized units, I went to an Auction there a few years back. http://www.realestate.com.au/cgi-bi...r=&cc=&c=47538844&s=vic&snf=rbs&tm=1244425079 There's this one in Williamstown for the same price, couple of blocks from the train station. I'd always go Williamstown>Yarraville.

 

[THEHEATH]

I noticed this one come up in my searchs as well. Thing that turned me off this one was that it was on the main road. Very noisy with lots of trucks driving down there constantly.

Those units go back a fair way though, depending on where your unit was located I don't think it would be too bad.

 

[skyash]

I noticed this one come up in my searchs as well. Thing that turned me off this one was that it was on the main road. Very noisy with lots of trucks driving down there constantly.

Good point.

We saw it on a Saturday afternoon and didn't really notice the traffic but what you've said is definitely something to be mindful of.

Cheers.

 

[skyash]

They aren't bad sized units, I went to an Auction there a few years back. http://www.realestate.com.au/cgi-bi...r=&cc=&c=47538844&s=vic&snf=rbs&tm=1244425079 There's this one in Williamstown for the same price, couple of blocks from the train station. I'd always go Williamstown>Yarraville.

We've picked the northern suburbs to invest in for our first IP because we're more familiar with the suburbs in the north. I haven't researched Williamstown yet but will keep an eye on properties in that area.

Thanks.

 

[skyash]

Those units go back a fair way though, depending on where your unit was located I don't think it would be too bad.

According to Residex, the property is worth $255,000. It was last sold in 1976 and based on the capital growth since then is estimated to be worth $235,000 today. If you were a numbers person, and buying it for $230,000, it doesn't seem like a bad buy.

 

[skyash]

They aren't bad sized units, I went to an Auction there a few years back. http://www.realestate.com.au/cgi-bi...r=&cc=&c=47538844&s=vic&snf=rbs&tm=1244425079 There's this one in Williamstown for the same price, couple of blocks from the train station. I'd always go Williamstown>Yarraville.

Rent is very low for this property in Williamstown.

"Presently Let until 01/06/2009 and returning $737 P.C.M. you can elect to move in after June or simply keep the property Rented."

Works out to be $170/week.

A two bedroom in the same apartment complex as this Yarraville unit is renting for $260/week, so I'm hoping for atleast $200+/week for a one bedroom unit.

 

[THEHEATH]

Yes, I would think it is being rented under value. Might be what is putting potential buyers off. These units were renting for $160 3 years ago. Not sure what is putting people off though, maybe it just needs a bit of a spruce up, not big enough for couples (fhb) and not shiny and new enough for singles fhb's. I've seen smaller flats in Williamstown (nicer looking block though) unrenovated, but nicely presented go for 280k.

 

[keneth]

I paid 190k for this in January. there is a property in the same block renting for $210 a week... 1 bedroom unit, just has floor boards...


http://www.homehound.com.au/unit+5+45+oxford+street+newport+vic+3015/8002391/

 

[exstatic]

Williamstown road is a very very busy road during the week with lots of trucks and commercial vehicles, so you need to be aware of that.

The price isn't to bad for the area, and I am sure with a few value adds you can up the rent from what it is now to something more comparable.

 

[keneth]

yarraville, seddon, toteham, kingsville all trucking area. I did some courier work along those routes.. a few years ago.

along francis street in particular, and through footscray.

I think its closeness to the city makes up for the high traffic volume, and the price compared to inner city suburbs on the eastern side.

You can actually by a house for 400k where as you would only get a 2 bedroom unit in east, or the sth east....

If i had a choice i would choose to live in armadale, but thats just too expensive for me and most!