Is Rhodes a good investment?

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Recently chanced upon the Mirvac website and found out about Pinnacle at Rhodes which is a multistorey development next to Rhodes Shopping Centre.

Visited the showroom and spoke to an agent who told me that the East facing side with city views commands a higher price than the West facing the water and premium 2Br with media were going for 800k. In contrast the West facing apartments ranged from 650-750k

The views are unobstructed of the city skyline from 10-15kms away and you could see Sydney harbour bridge.

Train station behind 2mins walk to out of your lift is reasonably convenient for a city worker like me and 1/2hr rides through strathfield to the townhall.

Coles / target / ikea next door for convenient shopping and living. Flemington markets for great vege and fruits, grocers etc. DFO 3mins drive to buy some clothes, Concord hospital ED in 3-5mins, Top ryde city 10mins away for some Hurricane's ribs. Any others?

Lots of developments from Crown, Meriton, Phoenix all with some multistorey developments in progress at various stages.

Thoughts?

I'm concerned about oversupply and capital growth and rental demand
 
Could also walk to events in the Olympic park :) I used to live in the area and miss being able to do this.

Do they provide a guide price for the different units? Personally I wouldn't be that interested in it because of high rise (very low land value per unit), possible high strata costs and potential oversupply of units in the immediate surrounds (you can see them all in the brochures!).

But hey - I'm new at this so may be talking rubbish! :)

Jason
 
High strata fees and a lot of unsold units.

800k+ for a 2 bedroom unit in that area doesn't strike me as a good buy. I'd prefer an older style unit somewhere closer to the city like Neutral Bay.
 
The other thing Meadowbank is only across the water and is half the price in the older section and about 3/4 the price in the new developments and on the same train line but also has the ferry which is great way to head to town.

You can buy a house in West Ryde and still have some change out of the $800k.

The is also alot more units to come in Rhodes as we are tendering on two more towers to go in later this year.
 
jeffb5ltr said:
The other thing Meadowbank is only across the water and is half the price in the older section and about 3/4 the price in the new developments and on the same train line but also has the ferry which is great way to head to town.

You can buy a house in West Ryde and still have some change out of the $800k.

The is also alot more units to come in Rhodes as we are tendering on two more towers to go in later this year.
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Not a good idea. I live in Concord West - one suburb down - closer to the city by one railway station and you can buy a 2 br house for $645K (this will sell for less too)

http://www.realestate.com.au/property-duplex+semi+detached-nsw-concord+west-107715716

I know which I'd choose (and yes would have bought this one but instead have decided to buy some cheaper IPs first)

Rhodes is oversupplied, not great capital growth and low rental demand.

Also don't buy near homebush either around the M5/Concord Rd intersection - there is a new block seeming to sprout up each day....

Area wise though its great - less than 30 mins to the city by express train and close to Olympic Park (concord that is!)
 
The property you have mentioned is on sale for the last 12 months with different agents. Not sure, why this has not been sold, probably next to industrial warehouse, opposite to westpac customer service, behind is a big isolated park and land size is also less.
 
ndpjai said:
The property you have mentioned is on sale for the last 12 months with different agents. Not sure, why this has not been sold, probably next to industrial warehouse, opposite to westpac customer service, behind is a big isolated park and land size is also less.
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Yes its next door to Chiswick plumbing and opposite Westpac service centre and Channel 9's Underbelly Razor Studio's was next door (but they have since moved and the industrial complex is vacant again) - so not exactly quiet and a hard sell!

The point is though that there are some other sub 800K houses around Rhodes (i.e west Ryde and Concord West) which would give better returns than an apartment in Rhodes.
 
Do you think views out in Rhodes commands a price? Or would one be able to find a similar priced apartment in the same line of sight as Rhodes closer to the city? Say Breakfast point, cabarita, abbotsford, chiswick, drummoyne, hunters hill, rozelle, pyrmont?

That being said, given the high price, would you say it's an apartment for negative gearing or reclaiming depreciation costs?

Mirvac's a pretty good developer, "10x better" than any Meriton you can find - although Meriton's experienced in building sky scrapers such as World Sq.
 
Rhodes is too expensive mate for Investment property under $500k

I was once offered Sanctum Rhodes Studio 1 BR with waterfront view for $499k
that was November 2011

better off get it in West Ryde and Meadowbank I think.
 
christos said:
Not a good idea. I live in Concord West - one suburb down - closer to the city by one railway station and you can buy a 2 br house for $645K (this will sell for less too)

http://www.realestate.com.au/property-duplex+semi+detached-nsw-concord+west-107715716

I know which I'd choose (and yes would have bought this one but instead have decided to buy some cheaper IPs first)
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Better idea than buying the place you listed, unless you like the industrial landscape and a semi detached house on a small block.Also the area becomes a wasteland after hours.

My point was to move one station away and you would get a 3br house (Freestanding) on a 600sq block for the same cash or actually less and have less outgoing bills.
 
jamiefhr said:
Mirvac's a pretty good developer, "10x better" than any Meriton you can find - although Meriton's experienced in building sky scrapers such as World Sq.
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As investment property you are not living there, so there is no need to be buying something more expensive when you going to achieve the same rental yield, Mirvac maybe "10x better" but it is certainly NOT going to give you "10x better rent" for apartments in the same area. Meriton's quality is decent enough and you could save $50k/$60k which you can use to buy another off the plan apartment.

Rhodes isn't cheap, at the same price you'd be better off looking at investment opinions closer to the CBD (within 10kms) which offers better rental returns.
 
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