So I bought OTP in Coburg at Air Pentridge about six weeks ago. The ave price for a 2BR in Coburg seemed to be around $420-$440K and I paid $530K. What I hear you ask? Yes I KNOW it's above the median and OMG it's in a hi-rise what was I thinking?
Well... it DID have an amazing view of the city from one side and the Dandenongs from the other. No pool or gym either so body corp lower than normal hi-rise apartments. Also unique in that it's in the Pentridge development which has a special place in my heart.
Even the guy selling tried to persuade me to buy 2 x 1BR instead because I'd get a better rental return but we stuck with the 2BR because the 1BR didn't have city views, which is what made it so awesome in our eyes.
Also, if other investors are buying the 1BR all the more reason to buy a 2BR so I'm not competing so hard for a tenant right?
Anyway... since then I've been really busy trying to buy a more normal established, small block 2BR in inner Melbourne and I'm constantly priced out of it at auction AND in private sale. I lost out on one yesterday that was only advertised as 'for sale by owner' with one OFI because someone else was willing to pay $60K above market price.
I feel better and better about our earlier decision every day and every time we miss out on yet another unit.
Our OTP doesn't settle until Feb 2012 by which point the median will probably have caught up at the rate we're going AND we have the advantage of an amazing view from the 8th floor. (or at least my perspective tenants do)
I'm giving up on Melbourne and turning my attention to Sydney and Brisbane. Melbourne is going to have to wait until next time round.
I love you Melbourne, you're my home and I'm really glad my PPOR/IP is in the obscenely overpriced Richmond but goodbye and good luck. All the crazy people willing to pay $200K above reserve can have it.
Rant over. Feel better. Thanks for listening
P.S. Yes I know I can find probably find property further out in the 20k ring etc but that doesn't suit my personal strategy.
Well... it DID have an amazing view of the city from one side and the Dandenongs from the other. No pool or gym either so body corp lower than normal hi-rise apartments. Also unique in that it's in the Pentridge development which has a special place in my heart.
Even the guy selling tried to persuade me to buy 2 x 1BR instead because I'd get a better rental return but we stuck with the 2BR because the 1BR didn't have city views, which is what made it so awesome in our eyes.
Also, if other investors are buying the 1BR all the more reason to buy a 2BR so I'm not competing so hard for a tenant right?
Anyway... since then I've been really busy trying to buy a more normal established, small block 2BR in inner Melbourne and I'm constantly priced out of it at auction AND in private sale. I lost out on one yesterday that was only advertised as 'for sale by owner' with one OFI because someone else was willing to pay $60K above market price.
I feel better and better about our earlier decision every day and every time we miss out on yet another unit.
Our OTP doesn't settle until Feb 2012 by which point the median will probably have caught up at the rate we're going AND we have the advantage of an amazing view from the 8th floor. (or at least my perspective tenants do)
I'm giving up on Melbourne and turning my attention to Sydney and Brisbane. Melbourne is going to have to wait until next time round.
I love you Melbourne, you're my home and I'm really glad my PPOR/IP is in the obscenely overpriced Richmond but goodbye and good luck. All the crazy people willing to pay $200K above reserve can have it.
Rant over. Feel better. Thanks for listening
P.S. Yes I know I can find probably find property further out in the 20k ring etc but that doesn't suit my personal strategy.