Footscray, CBD or Docklands for 1br Apartment as IP?

Just wondering what the collective thoughts are about purchasing a 1BR apartment in either Footscray (Saltriver Place?) Docklands or CBD?

With so many corporates moving to Docklands it seems to be the logical choice, but I can see Footscray forging ahead as well.

I'm open to suggestions about other areas as well.

Some here have suggested that it might be better than buying H&L in the outer east.

Thoughts greatly appreciated.

Cheers

Brett.
 
Definitely not Docklands - as the place is a wind tunnel and doesn't really have any life in spite of all the development going on there. Why don't you try apartments in nearby suburbs like Carlton, Fitzroy etc? There's usually a glut of CBD apartments so it might be hard to get substantial growth. Footscray is not a good area so if you're going to buy apartments there it'll have to be right next to the university in order to get good rentals
 
The idea of docklands is nice. The reality is not so great as a place to live.

Lots of companies moving into Docklands doesn't mean that people want to live there, since most people don't want to live on top of their office (its too depressing).

Next docklands has a lot of nice (pricey) bars, restaurants, shops, etc... That makes it a great place to visit, maybe not to live.

While it is waterfront. It isn't nice waterfront, its post-industrial water front.
 
Footscray is not a good area so if you're going to buy apartments there it'll have to be right next to the university in order to get good rentals

The apartments that BDK refers to are not really student accommodation. They tend to attract young professionals who want to live with two bathrooms, a big balcony with river and city views (very nice too) and all the security doo-dads.
The slightly older developments rent for about $500 a week (that's a guestimate). Not sure about the latest stage - I don't think it's finished yet.
One thing I will say is that it's a surprisingly noisy spot - stuck in between all that truck traffic on Footscray and Dynon roads and the freight train line too.
Incidentally, I think the perception that Footscray is not a good area is out of date. Just look at the growth in the past 12 months, and all the building and redevelopment. As a friend said to me recently, ''everyone bags Footscray, until you come to buy a house there and you see what it's going to cost!".
cheers.
 
If you're looking for a good 1 bedroom apartment you really need to look at South Yarra, Richmond, Prahran, Fitzroy etc. The question you have to ask is this - who is going to rent/buy this apartment from me? People who buy 1 bedroom apartments are predominantly young people, and that group likes to live near trendy places that are quite close to the city. North Melbourne and Footscray don't fit the former criteria so they're not good apartments for investment.
 
The idea of docklands is nice. The reality is not so great as a place to live.

I rate it as a great place to live ... but to invest? In my building there is currently a 2 x 2 flat for sale, water views, $725K, likely rent quoted as $600p.w. (and that's the selling agent's figure). Knock off 10% for letting fee, management etc and another $5K for BC and you get about 3% net. Might be OK if serious CG was likely but I somehow doubt this.
 
Agreed I went down to Nth Melb to have a look the other day. So overpriced for what it is. Would far rather live in Ivanhoe or something like that.
 
If you're looking for a good 1 bedroom apartment you really need to look at South Yarra, Richmond, Prahran, Fitzroy etc. The question you have to ask is this - who is going to rent/buy this apartment from me? People who buy 1 bedroom apartments are predominantly young people, and that group likes to live near trendy places that are quite close to the city. North Melbourne and Footscray don't fit the former criteria so they're not good apartments for investment.

Or even try well located in North Fitzroy and Northcote. For a desirable one it will cost $400-$450 though I think. Same with Richmond. Not sure about South Yarra but it has more high rise so maybe you could get it cheaper due to supply/demand etc.

All the good 1BR's I've seen sell in the above areas recently have been around $450. That's a lot of $$ for one bedroom.
 
Thanks everyone for your opinions.

I do agree, Docklands can be a wind tunnel.

I do still think that Footscray has heaps of potential going forward despite its industrial setting. For some reason I do like that area down by the river.

I will now expand my research to the suburbs suggested.

South Yarra
Richmond
Prahran
Fitzroy
Northcote
Nth Melb
Carlton
Fitzroy

That is if I can find something circa $400k

Really appreciate the effort. Great advice.

Cheers

Brett.
 
re

re

Having worked very closely in the Footscray community over the last 12 months or so, I would say that I would be extremely cautious on Footscray. There are some parts that you simply should not be in.

Warrenkh.2010
 
Carlton's 10 year average growth is only 3% for units. As an investment that's poor especially as it's been a pretty good ten year period. It does tick a lot of boxes though and fell 17% last year so you could buy in cheaply.
North Melbourne has average 9% and was pretty stagnant last year. NM's long term growth is better than Richmond, SthYarra, Prahran and Collingwood.
I'd be looking at East Malvern though. Blue chip location, transport, lifestyle and good buying: 10 year average = 10%, but in 2009 -17%. A one bedroom apartment here is good buying now for my money.......if I had any :p.
 
You can't judge Carlton on the yield of 3% for units in the past 10 years - that includes the obscene amount of crappy student units. Last 2BR I saw in Feb was advertised for $550+ and sold for $630K
 
Carlton's 10 year average growth is only 3% for units. As an investment that's poor especially as it's been a pretty good ten year period. It does tick a lot of boxes though and fell 17% last year so you could buy in cheaply.

Is that due to all the cheap student accomodation that has been built during that timeframe? ie all those 150k units have surely pushed down the statistical median?
 
Just wondering what the collective thoughts are about purchasing a 1BR apartment in either Footscray (Saltriver Place?) Docklands or CBD?

With so many corporates moving to Docklands it seems to be the logical choice, but I can see Footscray forging ahead as well.

I'm open to suggestions about other areas as well.

Some here have suggested that it might be better than buying H&L in the outer east.

Thoughts greatly appreciated.

Cheers

Brett.

Probably Footscray of those three. I haven't been to Docklands in a year or two buy surely there is still going to be be more apartments coming onto the market for years? ie years and years of oversupply?
 
Carlton's 10 year average growth is only 3% for units. As an investment that's poor especially as it's been a pretty good ten year period. It does tick a lot of boxes though and fell 17% last year so you could buy in cheaply.
North Melbourne has average 9% and was pretty stagnant last year. NM's long term growth is better than Richmond, SthYarra, Prahran and Collingwood.
I'd be looking at East Malvern though. Blue chip location, transport, lifestyle and good buying: 10 year average = 10%, but in 2009 -17%. A one bedroom apartment here is good buying now for my money.......if I had any :p.

This is where statistics are soooo misleading.
Why is carltons 10yr average only 3%, because of the proliferation of student accomodation (which generally shows poor growth). This effects the average.
The 10yr average on 'proper' apartments in carlton, ie ones of decent size and can be utilised by both owner occupiers and tenants have shown much much higher growth than 3%.
 
And again for the CBD and docklands, capital growth over the last 3 years has been fantastic. This is where i have made my money, buying when other people dont want it, and selling when demand arises.
The key is not to buy off the plan, and not to buy when the suburb goes through a concentrated spurt of new supply.
 
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