I wouldn't be buying it to redevelop... Rather, it's a prestige house desirable because it's directly opposite a gorgeous park with walking tracks etc as well as being walking/cycling distance to the city and walking distance to an established restaurant and cafe strip... also close to a ritzy private girls' school.
Can expensive houses ever work as a profitable investment?
- Thread starter china
- Start date
I think this should answer your original question...
http://www.theage.com.au/business/property/13m-sale-defies-slowdown-20120418-1x7nb.html
http://www.theage.com.au/business/property/13m-sale-defies-slowdown-20120418-1x7nb.html
If I was forking out a reasonable sum like that, I'd be expecting a much better return. Sure it has ocean frontage but you can buy better in places like Hunters Hill, Linley point, Northwood etc for deep water frontage & plenty of rental demand from Sydney based executives who would be paying $2K + for a lesser property.
Hi China,
Maybe look at things like:
This one around $5m - has an acre of land in inner CBD (land value) + value in the building (heritage - non-replaceability valuse)
http://www.realestate.com.au/property-house-vic-hawthorn+east-110238769
This one for potential land value as Melbourne creeps out on the eastern boundary
http://www.realestate.com.au/property-lifestyle-vic-nar+nar+goon+north-7351641
Or this one..... uhh..... just for the hell of it.
http://www.realestate.com.au/property-house-vic-mount+eliza-105363806
The Y-man
Maybe look at things like:
This one around $5m - has an acre of land in inner CBD (land value) + value in the building (heritage - non-replaceability valuse)
http://www.realestate.com.au/property-house-vic-hawthorn+east-110238769
This one for potential land value as Melbourne creeps out on the eastern boundary
http://www.realestate.com.au/property-lifestyle-vic-nar+nar+goon+north-7351641
Or this one..... uhh..... just for the hell of it.
http://www.realestate.com.au/property-house-vic-mount+eliza-105363806
The Y-man
What if I can pick up a 3 story water front property for $670k in the current flat market that would have sold for around $1m 3-4 years ago. And it has heaps of potential for renovation.
Apart from it being very difficult to rent out and you'd have to live there as your own PPoR (but then its tax free gains), I reckon it would make a top investment!
Buying prestige places at bottom of market around about now I reckon makes a lot of sense. They were so hyped up, tightly held and out off reach just 3-4 years ago. Now is the time!
Apart from it being very difficult to rent out and you'd have to live there as your own PPoR (but then its tax free gains), I reckon it would make a top investment!
Buying prestige places at bottom of market around about now I reckon makes a lot of sense. They were so hyped up, tightly held and out off reach just 3-4 years ago. Now is the time!
I agree exactly. If the prestige market is down, there must be opportunities right now. These are meant to be blue chip properties and when the market picks up, these should be the properties that bounce back. The only issue is how long one needs to hold the property with its attendant costs before the market picks ups. It is not possible to predict how long the market will stay down.
Y man, I see you have included a mount Eliza property there. We have been thinking long and hard about making a sea change and moving there - do you have any thoughts on the market there in general?
The houses seem like a lot of bang for your buck compared to what else is around - near the beach, good sized land and reasonable public schools. If of course you can handle the commute to the city.
Mrs wannaretire
The houses seem like a lot of bang for your buck compared to what else is around - near the beach, good sized land and reasonable public schools. If of course you can handle the commute to the city.
Mrs wannaretire
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Sorry - no opinion because I don't know the area much - in fact that ad I included for Mt Eliza - I don't even think it is a particularly nice house. To top it off, we think that house has been on the market for close to a year (unless I am very much mistaken - which I often am
)The Y-man
Thanks for replying anyway Y-man!
Just an update. The above property sold for 1.2mil today at auction with seven interested bidders - is this a good buy? I would be interested in opinions from people familiar with the central coast market.
I don't think it is a good buy.
I can think of a couple places in Sydney where I would rather sink $1.2m. When market picks up here you can easily make 300k or so when the markets picks up in 2-3 years..
Remember the casflow to hold something like this is going to cost about 30-50k after tax. So in my eyes not a good investment. Also it is very speculative.
I believe the market which is going to move soon is the FHB segment. If rates head down....we should have good pickup in NSW where rents are going gangbusters and it might cost the same to buy assuming you can qualify for a loan.
I am getting 360pw on properties I bought for less than 233K. If rents head up and hit say 385pw I will have a return of about 9% by mid next year. If I can lock in rates at mid 5's I am well and truly positively geared. I bought most of the properties in 2011.
I can think of a couple places in Sydney where I would rather sink $1.2m. When market picks up here you can easily make 300k or so when the markets picks up in 2-3 years..
Remember the casflow to hold something like this is going to cost about 30-50k after tax. So in my eyes not a good investment. Also it is very speculative.
I believe the market which is going to move soon is the FHB segment. If rates head down....we should have good pickup in NSW where rents are going gangbusters and it might cost the same to buy assuming you can qualify for a loan.
I am getting 360pw on properties I bought for less than 233K. If rents head up and hit say 385pw I will have a return of about 9% by mid next year. If I can lock in rates at mid 5's I am well and truly positively geared. I bought most of the properties in 2011.
Lived in Red Hill for 2 years...weather is terrible. Good if you like 9 month long winters.
Some of the wines are nice though.
Thats great buying. Are these 9% returns for Western Sydney houses with granny flats added to them to create such high yields?
Typical 3-bedders are selling for $240k and renting for around $320 per week. That's at their ASKING prices without any work. That's 6.9% gross yield.
To get better you'll have to find a place that needs work, then buy it cheap and renovate to get top rent.
