Help on the Aprtment development at Burnley Street Richmond Melbourne

[Neophyte]

It'd have to be a very impressive 1bdr apartment to get around $400/wk in Richmond. Although looking online there are plenty of 2bdr asking $550/wk.

Guess I must be out of touch on inner city rents.

I would expect high rents in southbank/cbd/east melbourne. But Burnley st Richmond is not walking distance to the city.

 

[Tony3008]

Tony, can I ask why you bought the second one? Three years had passed, didn't you do the sums then and see what it was costing you out of pocket and that it hadn't grown much?

The first was bought ultimately to be my PPOR (not as it turned out) and was still in the rental guarantee period when I bought the second (first bought Nov 2000, completed Dec 2002). First year gross $26K, exps $7K, net $19K. Three years later $21K/$8K/$13K. But as the sales presentation says "if rents rise by 7% a year ..." and at the time you can't see why they shouldn't.

T.

 

[The Y-man]

Read this article from The Age website. Rent lower than projected and BC higher were 2 things she got caught out on.
.

Holy heck.... is that her real name??

The Y-man

 

[wobbycarly]

Holy heck.... is that her real name??

The Y-man

If you had the choice, would you choose that name as a pseudonym? And you're not mis-reading it like this are you?

 

[Tools]

Keep in mind too that when the building is finished and you are looking for a tenant, so will 30 or 40 other investors. Some will be more desperate to find a tenant than you and will drop their asking price below yours. Be prepared for a potential vacancy period up front.

Tools

 

[Tools]

If this apartment is not in the Salta development , then Salta may be finished around the same time and will be more competition for you.

Tools

 

[Tony3008]

Keep in mind too that when the building is finished and you are looking for a tenant, so will 30 or 40 other investors. Some will be more desperate to find a tenant than you and will drop their asking price below yours. Be prepared for a potential vacancy period up front.

This is actually one of the few good arguments for a short rental guarantee: the letting agent(s) aren't being bombarded with everyone wanting their unit to be given priority and moves into the building can be staged over a reasonable period - even more important where lift capacity is an issue.

T.