Fully Furnished Apartments/Units - Perth inner city

MTR

MTR

Hi All

There are plenty of units in great inner city locations, however the rental returns are pretty average around 5%. The 1 bedders can achieve higher returns, in particular East Perth, problem is they are tiny (under 45 sqm).

With so many FIFO workers perhaps there is now a very good market for this type of set up, where pehaps 8%+ returns could be achieved. I am currently investigating this option as I think the demand for units inner city is high, rents going up and I also expect growth to follow.

I would be keen on feedback from anyone who has been down this road and what areas you would consider ideal.

Cheers, MTR
 
Personally I think there is more of a market for short term contractors and/or new to Perth people not FIFO but my answer is the same. I've been looking into short term corporate stays instead and I believe there is money in it.

I too, have been thinking the same thing but my plan to buy an apartment got side tracked by me putting an offer on a house last week instead.

This is a prime example - the size would be hard to finance but you get the idea

http://www.realestate.com.au/property-apartment-wa-perth-112126903

The add doesn't say it anymore but the other week it mentioned that it had an occupancy rate of I think 87% and its major tenant was visiting opera singers at His Majesty.
 
Westminster
thanks for the link/feedback.
I can use cash to purchase smaller units, the problem is getting the money out, and resale. As you mentioned, investors will have issues getting finance so just "cutting your nose despite your face".
The rent was pretty amazing though.

I plan to do some research this week and contact property management companies that specialise in these types of properties to find out what areas are in demand, rent range, areas, etc.

I would not want to be managing these properties, so I expect fees will be costly, just have to see how it stacks up.

It would be great to purchase a few of these in great locations and just sit on them till the next boom cycle.

Cheers. MTR
 
Mtr,

I just recently purchased one in wembley, a fully furnished one bedroom apartment for around 180k. Rents are approx mid 200's to high 200. Mine 290. location is also quite close to subiaco, 4kms from the city, and neighbours floreat. Has potential also to renovate the kitchen and bathroom for equity increase at a later stage. Also it may also pay to have a look at east Vic park??

With the way Perth is going and rental increases these units could represent great value in years to come. Anyway I'm excited.

Also my first post, been investing for a number of years, live in Perth, Scarborough. Long time reader but never found the need to actually post, was purely research. :)
 
i design 40sqm 1beds that are bigger and more usable in actual, furnishablespace than a lot of 50sqm units ive had the displeasure of living in.

people will always crticise these sizes until they understand why the vision is laid down as such.

my point is, dont knock them on thier size - understand the space first.
 
FastMoney said:
Mtr,

I just recently purchased one in wembley, a fully furnished one bedroom apartment for around 180k. Rents are approx mid 200's to high 200. Mine 290. location is also quite close to subiaco, 4kms from the city, and neighbours floreat. Has potential also to renovate the kitchen and bathroom for equity increase at a later stage. Also it may also pay to have a look at east Vic park??

With the way Perth is going and rental increases these units could represent great value in years to come. Anyway I'm excited.

Also my first post, been investing for a number of years, live in Perth, Scarborough. Long time reader but never found the need to actually post, was purely research. :)
Click to expand...

THanks for your feedback, and great that I was the first post that inspired you jump in.

I will certainly look at Victoria Park it was not on my radar but certainly close to the city.

Cheers MTR
 
8% is too low for something like this, especially if it's gross and you haven't factored in body corporate and your neighbours on strata are annoying.

Also questionable where the growth is unless you can take out floors and renovate/re-divide it.
 
Aaron Sice said:
i design 40sqm 1beds that are bigger and more usable in actual, furnishablespace than a lot of 50sqm units ive had the displeasure of living in.

people will always crticise these sizes until they understand why the vision is laid down as such.

my point is, dont knock them on thier size - understand the space first.
Click to expand...

Hi Aaron
not knocking the smaller units (40-50 sqm) the problem as I see it is - finance. I have been chasing a couple of these where agents have had multiple offers, however buyers could not get finance. When and if I decide to sell is when it will be an issue - finance.

Cheers MTR
 
Deltaberry said:
8% is too low for something like this, especially if it's gross and you haven't factored in body corporate and your neighbours on strata are annoying.

Also questionable where the growth is unless you can take out floors and renovate/re-divide it.
Click to expand...

Hi Delta
I agree need higher yields and that is what I am trying to achieve with this strategy, but have just started researching.

Units are very easy to renovate and I am not expecting to make a killing on this in the short term, however it could improve the yields substantially. The idea is really to hold some stock in quality areas, close to the city as I can see that there is demand for these types of properties which hopefully will increase values.

.Cheers MTR
 
Not sure what budget range you are considering, but ive got something quick to contribute here.
Last yr i almost bought a studio apt, nth facing, adelaide tce east perth. This was the best positioned studio, top floor highest ceilings and views over pool and landscaping that couldnt be built out. This was going for 360k (brand new, complex finished at time of sale).

A workmate bought one 3 floors down for abt 340k. His direct neighbour leased his immediately for $550 week. Thats a pretty good yield for unfurnished and "set and forget".
Esp when u factor depreciation in.

Anyway a few months later i noticed another in the complex, being privately managed and advertised thru Gumtree. This was renting fully furnished, minimum 1 week at a time, for around $850/wk. Judging by available dates it seemed hugely in demand. Perfect for fifo, or someone not wanting to pay for a week in a hotel (ridiculously exp in perth mid weel). This place obv has pool gym etc so similar facilities.
 
Last edited:
Hi Beijos
that budget is fine.

Its the strata fees on these types of properties which have pool, gym etc which puts me off. You get in one hand, and they take from the other.

Vic Park is looking very interesting, but one really needs to look hard to find something suitable, that ticks all the boxes. Interestingly enough after chatting to various property managers in this area, you perhaps will only get an extra $20 pw in this area for fully furnished for lower end.

On the flip side if you buy well you certainly can get great yields by doing a minor reno. All fun and games, back to looking.



Cheers MTR
 
I too am buying furnished in the city so I will follow this thread. Have no experience in it but I do run furnished short term rental in Mandurah and it has gone so well that I decided to do the same thing somewhere else. My husband's company rents furnished accommodation in the city area when they bring over new employees from the eastern states or overseas, however there is a LOT of competition and when business slows down so will yours.
 
This is a 1 bedder which sells for around $220K, reasonable complex. Nice reno, if it rents at this price will be reasonable.

http://www.realestate.com.au/property-apartment-wa-victoria+park-405293014


This one has been on the market for 3 months and has been slowly dropping, original condition, with a reno have been told possible to achieve $400 pw, not sure about this as it is only around 60 sqm. One thing that puts me off the lower end is the community laundry.
This property has apparently had 3 offers around $265K.


Now this property, apparently better location, security complex, once again community laundry, however room for washing machine in bathroom area or alternatively front loader, kitchen. Once again this is original.

http://www.realestate.com.au/property-unit-wa-victoria+park-112046703




Cheers, MTR
 
Im talking short term as in days - weeks!

Although I looked at your first link to that 1 bedder in east perth, that looks nice and that rent is great! Im renting out my Mandurah place at about $950 per week I predicted it would flop and that people staying would be few and far between but its pretty much fully booked and bringing a hell of a lot more than it would have as a regular rental down there.
 
Due to location I have obviously gone the more "tourism" route rather than corporate. I enjoy the unpredictability of it - I like a challenge :)
 
mandimoo said:
Im talking short term as in days - weeks!

Although I looked at your first link to that 1 bedder in east perth, that looks nice and that rent is great! Im renting out my Mandurah place at about $950 per week I predicted it would flop and that people staying would be few and far between but its pretty much fully booked and bringing a hell of a lot more than it would have as a regular rental down there.
Click to expand...

Sounds like you have tapped into the right market, would like your figures if you dont mind sharing.

$950 per week, how much did you pay for the property??
 
You must log in or register to reply here.

Similar threads

W
Trendy inner city units in Adelaide?
Replies
4
Views
812
wll6568
W
G
Annexed Unit Floorplan
Replies
1
Views
908
Scott No Mates
Scott No Mates
MTR
R40 - 776 sqm block
2
Replies
28
Views
4K
westminster
westminster
sammmeee
Inner city or house and land Perth?
Replies
5
Views
1K
Kent Cliffe
Kent Cliffe
N
Liverpool surrounds v Inner West
Replies
10
Views
2K
blackenator
B
Back
Top