Docklands - $500k

[adam73021]

I've been reading through the pages of threads on Docklands Vic, I've noticed there's quite a few properties around the $500k mark that are somewhat targeted towards investors (Chinese investors perhaps???). The first listed appears to be rented for $520pw (no mention of this being a Quest apartment), IMHO this seems to be a fairly good gross return. Is this 673 - 675 Latrobe st the potential 'ghetto' area people are referring to? There also appears to be quite a few apartments in the same complex which concerns me.

Looking for first property to build up equity & CG. Opinions?

http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Docklands/?adid=2009935894

Others in same location;
http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Docklands/?adid=2010265337

http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Docklands/?adid=2010308228

http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Docklands/?adid=2009597850

 

[Aaron_C]

Why bother? Docklands is a terrible place to live and is the laughing stock of Melbourne.

 

[Tony3008]

Why bother? Docklands is a terrible place to live and is the laughing stock of Melbourne.

I rate Docklands as a great place to live in spite of the knocking - nearly everything I want within a short walk. As a place to buy an IP, no. A dual key (1-bed+studio) flat identical to and just above mine was for sale recently; I think they got around $700K. I paid $623K six years ago, so if I sold now I'd be only breaking even once buying and selling costs were factored in. Not a good start.

The combined rent for flat and studio would be $780, which looks OK for a $700K purchase price. Allow 50 weeks rented, deduct 10% for management and letting fees, $6800 OC, $1150 rates, $300 LLins and $700 water and the net is $26,150 or 3.74%. Not much of a return for a property whose value won't go anywhere in the near future with so many new flats coming on stream.

 

[zed_kid]

There also appears to be quite a few apartments in the same complex which concerns me.

You’re right to be concerned about this.

Are you a foreign investor? If not then don’t bother with Docklands and other OTP rubbish, get a deco 2/1/1 in the inner east / bayside.

 

[Melbournian]

deco for landed but no way for apartment (disaster for renovation) and basically lifeless and unappealing without one.