how is this property doing?

[Melbournian]

staying on the topic, do you think that the apartment market in southbank vic will continue to see capital gains over the next few years? I realise its all a bit crystall ball stuff, but im trying to gather as much info as possible to make some decisions.
One suggestion has been to hold off selling and use the rental returns to acheive my other objectives. Fair point, and ill consider doing that. I would probably rather just prefer to sell and get the money and distribute it as i see fit ( much cleaner option).

Southbank will not grow massively. It will just stablize. As for all the OTP they will mostly be capital losses. But that doesn't mean it is a dead market. Depending on how you present your property, location and various factors you can make a large gain. There are still many many buyers in this market (the 2nd hand apartments). Trust me - i got to inspections and auctions every single week. And some very high net worth student or business PR buyers if you catch my drift. in my building a 2 bedroom 2 bath sold for 740K on the 24th floor.

 

[Melbournian]

i m not a crystal ball but ive heard on numerous occassions that the inner city apartment market is probably not the best market to get into in the next few years, due to severe over supply currently and in the future with gazillion OTP apartments going up.

You're right there but as "W" said. it depends on location and depends on what you actually buy

I dare say if given the right apartment and right price in southbank or south melb or south yarra or carlton or st kilda road or city for low to mid 500s i can achieve 18-25% Net capital gain (after stamp duty etc) with renovation in less than a year or even 6 months. There would be more than just buy and hold strategy of many other suburbs. I would be even willing to wager a bet on it with anyone.

 

[eeew]

I know southbank or south melbourne apartments very well. Whereabouts is it? if i can view it or know the size and address- i might even buy it from you.

its on city rd, north facing, near to top of the building.

thanks for your potential offer, but i think ill refrain from selling and wait a few yrs. Even if it does 2-3% per yr cap gains, i will take that, given the rental yields are strong.

 

[Melbournian]

no worries.

Was going to say that city rd is going through a bit of downside on southbank. it's congested due to only one lane going towards southbank and multiple carparks (5) in that corner of queensbridge creating even more congestion. All the properties in that road are taking a while to move. there is also plans for another tower to come up further down and the new building which just finished building in where many vacant apartments are still available. There is also a few towers to near the BMW dealership just coming up.

But i reckon if you bought it for 400Kis - u're already positive geared - so you should have no probs maintaing that property in your portfolio. All the best!

 

[Wunderbar]

Southbank is a better version of Docklands. But mainly because of Crown

 

[eeew]

no worries.

Was going to say that city rd is going through a bit of downside on southbank. it's congested due to only one lane going towards southbank and multiple carparks (5) in that corner of queensbridge creating even more congestion. All the properties in that road are taking a while to move. there is also plans for another tower to come up further down and the new building which just finished building in where many vacant apartments are still available. There is also a few towers to near the BMW dealership just coming up.

But i reckon if you bought it for 400Kis - u're already positive geared - so you should have no probs maintaing that property in your portfolio. All the best!

yes, i agree. Traffic is a bit of an issue. Thank god that i am on a higher floor and all wondows and balcony door are double glazed- blocks out a lot of noise.

 

[Melbournian]

yes, i agree. Traffic is a bit of an issue. Thank god that i am on a higher floor and all wondows and balcony door are double glazed- blocks out a lot of noise.

From my knowledge - only the penthouse are double glazed on those blocks unless they were specifically put in on that apartment when initially bought. if they are you are lucky coz back when it was built it wasn't that buzy like it is now.

 

[boiselfish]

From my knowledge - only the penthouse are double glazed on those blocks unless they were specifically put in on that apartment when initially bought. if they are you are lucky coz back when it was built it wasn't that buzy like it is now.

Depends which building your in, Kavanagh st/Power st corner double glazed to LV23, City rd/Power st has double glazing on the whole building.

 

[Melbournian]

strange my unit on the 5th floor is not double glazed. If you look at the corner, they're all carparks on the first few levels if you talking abt city rd.

12th floor unit on kavangh is also not double glazed. i'm not talking about the 2 sliding windows which only overlay in the middle by 10-20%. that's not double glazed.

 

[bojangles]

Smart?

How is being cash-poor an opportunity? The only way out of that situation is to purchase a high yielding assets to fund future acquisitions. There's no need to be a smart-***

MY dear friend, the only reason I'm still a (small time) property investor is because of the encouragement that came from Rixter. If you think he made a 'smart' comment to you.. well i think you may be easily offended.. so take it from me... He's one of the most experienced on here.. listen and learn...

 

[boiselfish]

strange my unit on the 5th floor is not double glazed. If you look at the corner, they're all carparks on the first few levels if you talking abt city rd.

12th floor unit on kavangh is also not double glazed. i'm not talking about the 2 sliding windows which only overlay in the middle by 10-20%. that's not double glazed.

Which building are you in and which way do you face. 'The summit' Should have been completely double glazed not just the sliding doors. Also
The Sentinel' is only double glazed facing Kav and Power Streets up to LV23.

Clearly the car park levels are not glazed at all.

 

[Melbournian]

MY dear friend, the only reason I'm still a (small time) property investor is because of the encouragement that came from Rixter. If you think he made a 'smart' comment to you.. well i think you may be easily offended.. so take it from me... He's one of the most experienced on here.. listen and learn...

who is rixter and what's it got to do with the thread on this person's apartment?

 

[Melbournian]

Which building are you in and which way do you face. 'The summit' Should have been completely double glazed not just the sliding doors. Also
The Sentinel' is only double glazed facing Kav and Power Streets up to LV23.

Clearly the car park levels are not glazed at all.

i can tell you all the buildings that i am or have been and this is only in southbank.

summit
sentinel,
centurion
southbank towers
melbourne towers,
southbank condos,
vue grande

i can 100% tell you that the unit on the 12th floor is not double glazed. (i consider double glazed is whereby it has 2 sliding doors or the door/window has a spacing between 2 glass) Trust me i know these places have owned close to 13-15 of these apartments and renovated every single one of them.

 

[boiselfish]

i can tell you all the buildings that i am or have been and this is only in southbank.

summit
sentinel,
centurion
southbank towers
melbourne towers,
southbank condos,
vue grande

i can 100% tell you that the unit on the 12th floor is not double glazed. (i consider double glazed is whereby it has 2 sliding doors or the door/window has a spacing between 2 glass) Trust me i know these places have owned close to 13-15 of these apartments and renovated every single one of them.

Ok, well the ones I have been in Summit, Sentinel Melb + City Towers all have apartments with double glazing to particular levels and particular sides of the buildings. So unless your on the sides not facing traffic or higher than what was double glazed (usually LV 23 or 24) I cant see how your coming to this conclusion.

But never mind its not worth arguing over something so silly..

 

[Melbournian]

Ok, well the ones I have been in Summit, Sentinel Melb + City Towers all have apartments with double glazing to particular levels and particular sides of the buildings. So unless your on the sides not facing traffic or higher than what was double glazed (usually LV 23 or 24) I cant see how your coming to this conclusion.

But never mind its not worth arguing over something so silly..

No worries - u looking to buy in southbank?

 

[boiselfish]

I have had since '06'. Same as the thread starter. I could only afford a 1 bedder at that time. So he has seen a greater $$ gain than me however our % increase is similar at around 60% so im fairly pleased.

Why do you buy/sell so many?

 

[Melbournian]

I have had since '06'. Same as the thread starter. I could only afford a 1 bedder at that time. So he has seen a greater $$ gain than me however our % increase is similar at around 60% so im fairly pleased.

Why do you buy/sell so many?

read this months API mag and you will know why.

 

[eeew]

I have had since '06'. Same as the thread starter. I could only afford a 1 bedder at that time. So he has seen a greater $$ gain than me however our % increase is similar at around 60% so im fairly pleased.

Why do you buy/sell so many?

yes, they have done well since 06. Good cap growth ( considering these are apartments with no/minimal land) whilst returning strong rental yields. Few investments have delivered this kind of cap growth whilst yielding strong rental returns at the same time in that period. Its usually one or the other.
[ houses sit on land and thus appreciate faster but since they are usually further from the city, they offer lower rental yields. Inner city apts are the opposite. If you can get both at the same time, consider yourself lucky.]

In the next yr , Inner city apts will show minimal cap growth, but deliver strong rents. However, the factors contributing to cap growth (i can only speak for melbourne city)[ strong immigration, govt 'beautification' plans, job growth, high oil prices, and an ageing population ] all are so strong that apartment prices will have to increase in the future; its only a matter of when and how much. Nobody knows the answers to these, so its generally better to adopt a buy n hold strategy when it comes to inner city apts.

So what i suggest: now is the time to get into the property game if you have not already- id probably go with inner city apts, but you MUST have a med-long term strategy with these- 7-10 yrs historic price doubling.

I would avoid houses; if you want a good deal in mel or syd, you will have to go so far out in no-mans-land, you will have to take a REX flight to get to the city.

 

[Melbournian]

yes and no.

Owners corporation fees are really very expensive. With more towers coming up and student intakes cut - would put more pressure on rent and resulting in pressure on rents. again location is important. Many of the newer apartments are like shoeboxes. I mean off the plan 78sqm for 690K - i mean you serious? how long would someone be able to get a decent capital growth ?

I would both landed property and apartments offer capital gain.

The only benefit buying in 06 is that you bought before the boom in melbourne therefore anyone who bought anything around that time would have had a high capital growth now but that doesn't mean that it will happen again today. the price paid in 06 even where you went 95% gearing would still be positive gearing today if you had a tenant. Prices are quite high especially for off the plan and there are long lists of losses for people who do buy off the plan. I would buy inner city apartments - yes however the right ones where there is room to renovate or added value or in the right location. Just going ahed to buy something without any strategy or tactics could result in losses.

 

[Wunderbar]

$690k for 78sqm on the 8th floor