Carnegie VIC - Hold on or Get out

Hi Everyone,

My brother in law recently had an offer accepted for a 2 bedroom 1 bathroom apartment in Carnegie Victoria through a private sale ($409,000). With the current state of the market in Melbourne it is difficult to get a seller who is not willing to go to auction. SO they were quite happy when their offer was accepted (personally I think they paid $9000 over the what they should have A ground floor apartment (not renovated) in the same building went for $380,000.

So the apartment is on the top floor with good views and has been renovated. The building is old 1978 build i believe. The building is quite small just 8 units in total. Most of the apartments are occupied by their owners except for 2 (One is rented out and the other *here's the thing* is either rented out to or is leased by the department of housing.

The flat in question is located on the ground floor, has poorly kept curtains and there is a dank stale cigarette smell when passing it.

My brother in law did not know about this flat and only after enquiring about the poor conditions to the body corp was told the truth. However They did mention that they were trying to get rid of the people in the apartment or ensure it was not leased by the department of housing - *Not sure have to clarify this*.

He has the option to pull out of the deal and it will cost him $880, What does everyone think? tick with it or pull out? Is this a poor investment in the long run?
 
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Don't think about losing $880...think abt the $409000 that is being spent. Is it a good investment?

Hi Everyone,

My brother in law recently had an offer accepted for a 2 bedroom 1 bathroom apartment in Carnegie Victoria through a private sale ($409,000). With the current state of the market in Melbourne it is difficult to get a seller who is not willing to go to auction. SO they were quite happy when their offer was accepted (personally I think they paid $9000 over the what they should have A ground floor apartment (not renovated) in the same building went for $380,000.

So the apartment is on the top floor with good views and has been renovated. The building is old 1978 build i believe. The building is quite small just 8 units in total. Most of the apartments are occupied by their owners except for 2 (One is rented out and the other *here's the thing* is either rented out to or is leased by the department of housing.

The flat in question is located on the ground floor, has poorly kept curtains and there is a dank stale cigarette smell when passing it.

My brother in law did not know about this flat and only after enquiring about the poor conditions to the body corp was told the truth. However They did mention that they were trying to get rid of the people in the apartment or ensure it was not leased by the department of housing - *Not sure have to clarify this*.

He has the option to pull out of the deal and it will cost him $880, What does everyone think? tick with it or pull out? Is this a poor investment in the long run?
 
Not just buyer's remorse?

Carnegie - IMHO a good solid area, should be no major vacancy issues

Comparing prices with a Ground floor no view with a top floor is not quite comparing oranges and oranges (maybe orange with lemon)

Block of 8 - good

78 build - not bad. Have older, and they are fine.

DOH - IF the fer.... I mean tenants are causing an ACTUAL ISSUE (i.e. threat to safety, damage) - have the BC manager contact the department immediately - they are quite quick in changing out the tenants, to give you a different set.

We had one case of "bad" where the tenants had loud music at night, yelled at and threatened passing foot traffic, and allegedly slashed a tyre on some other tenant's car. Complained to the department and they were out within a week.

On the other hand, we have a unit in a block of 4 with the department owning one, and have never heard complaints form our tenants/PM. Every time we've gone past, the housing owned place looks fine, and I think I even saw their tenant out the front sweeping the driveway.

One great thing with the department is that they never oppose any OC resolution (go with whatever you want) and are never late in paying OC fees.

The Y-man
 
there seems to be an awful lot of "should I hold or sell" type threads recently.....

thats the extent of my contribution....sorry:D
 
Carnegie is a great suburb, I'm biased as I grew up there though.
However look at the development along the main shopping strips, library, new restaurants, train station etc.

I'm looking at buying there amongst other areas, imo great spot. Has the lot, shops, public transport, schools etc.

Just realized this is an old post, I would have hung onto it if it was me.
 
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