melb cbd apartment bourke st

Hey guys
just want some advice on melbourne cbd apartments,

ive put a 15,000 deposit down on a 42m2 1 bedroom, balcony apartment on bourke st, the apartment is on level 10 with views of elizabeth st etc

www.equityapartments.com.au

The apartment has no features such as pool, gym etc but it will be built on a heritage listed building - equity chambers

the apartment cost $320,000 and it will eventually be my investment property.

i put the deposit down in nov 2009 and the construction wont start till jan 2012 ... expected completion late 2014

body corporate will cost approx 1200 per annum

my question is:

Is this a good investment property? ( rent wise )
At the completion date will the property be worth more than what i bought it for ?

cheers
jono
 
Hey guys
just want some advice on melbourne cbd apartments,

ive put a 15,000 deposit down on a 42m2 1 bedroom, balcony apartment on bourke st, the apartment is on level 10 with views of elizabeth st etc

www.equityapartments.com.au

The apartment has no features such as pool, gym etc but it will be built on a heritage listed building - equity chambers

the apartment cost $320,000 and it will eventually be my investment property.

i put the deposit down in nov 2009 and the construction wont start till jan 2012 ... expected completion late 2014

body corporate will cost approx 1200 per annum

my question is:

Is this a good investment property? ( rent wise )
At the completion date will the property be worth more than what i bought it for ?

cheers
jono

anything below 50sqm and below is not worth a look or consideration. The unilodges prices and many other student accommondations or pigeon hole apartments have been hovering around the same price for years and many banks won't lend on it. Commonwealth now decreased the size to 40sqm instead of 50sqm.

There would be minimal or none or even negative capital growth.
 
my question is:

Is this a good investment property? ( rent wise )
At the completion date will the property be worth more than what i bought it for ?

cheers
jono

Rent wise - about 4%-ish net of fees, BC etc at a guess.... for exampl over 400 apartments up for rent right now! So not exaclty a shortage....

Growth - as a comparison our CBD fringe 1BR (bigger floor space with Carpark and Storage cage) we bought for $180k in 2001 will probably get around $320k at present - so not spectacular CG wise.

Make sure you budget for the lift! (Double that BC estimate)

Will it be worth more at settlement? Hard to say.

The Y-man
 
she'll be right mate. how much are you stumping up on completion? what LVR are you looking at? rent and vacancy wise you should be ok. dont expect stellar CG though
 
thought i would explain why since you PM me : -

you can go do research - normally off the plan apartments do not get any growth or minimal CGrowth in the first 3-5 years. Secondly, at the prices they are selling you're looking and even none or very minimal. You're better off putting ur money in a term deposit.

forget about anything below 50sqm - it's very hard to sell it off unless you going below mkt value. i have bought, sold, lived in and rented out many apartments and lived in like 6 of them. i know what it is like to live, breathe, renovate, hold, rent and sell apartments in melbourne. Who is your target market to sell in the event that you need to offload? students?, single professionals would want a bigger place. If you're targeting the high net worth students - they're be looking at the eurekas, freshwaters and melburnian.

you're better off buying an old place, renovating it up to achieve higher capital returns. or increased capital growth. try wells st, dorcas st, bank st on south melbourne. rock solid.. even during these times 2 bedders selling strong 616K during auction. all certain parts in the CBD like spring st, la trobe, exhibition st.

Not all off the plans are bad.. there are rare ones like ikonapartments.com.au in glen waverley which was basically sold out in 6-7 hours (100% of it) coz of it's location and target market.

advice - first follow these factors :-
1. target market (the key factor)
2. how many buildings are there in your area (the more units build are going to affect your rental returns)
3. historical charts of apartments less than 50sqm capital growth.
 
Personally I won't touch the CBD...
But it looks like you already signed the contract. So make sure you talk to banks early. below 50sqm is bit risky with loan applications
 
No car space I presume..You will need to be careful about vacancy rate as there will be thousands of similar units in CBD. CBD unit will be hard to sell for the same reason.
 
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