Mitcham Village Apartments - OTP

Hi all,

Longtime lurker, first time poster.

On my daily train commute to the city from Ringwood, I have recently noticed the approval for proposed 1 & 2 bedroom apartments complex (totalling 200 apartments) situated right next to Mitcham station.

http://www.mitchamvillageapartments.com.au/
http://www.realestate.com.au/cgi-bi...r=&cc=&c=47729928&s=vic&snf=rbs&tm=1254811451

My first thought was that the prices were pretty expensive, but every time I think that, the market proves me wrong. I am not looking to invest in this complex, but I was interesting in other peoples' views as it seems the high density living that has become standard in the inner city suburbs is now making its way to the outer suburbs. Similar projects are under consideration for Box Hill and Ringwood.

Are these Mitcham apartments a viable investment opportunity considering the price, the lack of schools/universities (therefore the lack of student to rent) and the >20km commute to the city?

Cheers
 
proposed 1 & 2 bedroom apartments complex (totalling 200 apartments) situated right next to Mitcham station.

http://www.mitchamvillageapartments.com.au/
http://www.realestate.com.au/cgi-bi...r=&cc=&c=47729928&s=vic&snf=rbs&tm=1254811451

Similar projects are under consideration for Box Hill and Ringwood.


Cheers

Who wants to live right next to the train station, for IP it may be OK, Lately there are number of appartments build in Box Hill near the BH TAFE and they are still having problem to sell or lease, just my thought

KK
____________________________
Trust your hopes, not your fears
 
For brand a brand new development in Mitcham, I'd say they're asking a price at the high end, but not unreasonable. There are a few things to keep in mind however:

These will be about the almost only apartments of their kind in Mitcham, it's totally out of character with the rest of the suburb. The developers have had to fight hard and long to get this approved and it's a far cry from their original plans.

This is literally over the road from the train station. By over the road, I mean about 5 meters. Trains arrive every 5 minutes during peak times and every 20 minutes otherwise. On the other side is Whitehorse road. This is probably the noisiest site in the Eastern suburbs unless you're camping on Eastlink.

Parking will be a nightmare, so will access. You can't get a park by the station after 7:30am, busses and taxis are constantly turning on what will be the front door. It's a small street with limited access and a lot of traffic already. Add another 40 cars getting in and out, I may have to relocate my PO box.

Leasing will be a problem after the 'brand new' factor wears off. There's plenty of stand alone townhouses that are much nicer in the area.

On the good side, it is very well located. The problem is it's a bit too well located.

Mitcham is a great place to live, but it's still possible to get a 3br house on its own block for well under $500k within walking distance of this site. People are paying a premium for anything new.
 
I agree with K4K4M, those apartments will be too close to the train station and there will be no parking. Having lived in Mitcham for the past 10 years, I have to say, it is too far from the city to be building apartments. There are no major universities or shopping centers in the vicinity, hence it'll be difficult to rent it out. Those enjoy living in apartments will most likely be looking closer to the city where there's plenty of entertainment and resturants.
Buying a house in the suburb would definately be the better option.
 
I just bought one for a PPOR. Which reminds me PT_Bear, can I book you in for June 2011 to do a home loan? That's when they'll be ready. I can't wait to get into it, they are literally no more than a 3 minute walk to everything I need - post office, Coles, bank, Thai food, pub... yeah that that's pretty much all I need.

PT_Bear the parking situation doesn't affect the residents of the apartments as there will be a two-level underground car park with swipe card access. I personally don't see the traffic as an issue and there are some apartments in the complex that are well insulated from the noise of the rail and road by virtue of its design - but I'll take the noise in exchange for it's perfect location.

As for it being an investment, how can you go wrong? People who work in the city will love these apartments as will people who work in the eastern suburbs or anywhere near eastlink. You've also got access to 3 major universities by rail (Swinburne, RMIT & Melbourne). I like it because it sticks out like dog's balls and it's really convenient being able to roll out of bed and walk across the road to Coles or take the lift to the lobby to get a latte. That's what apartment living is all about.

Are they pricey? Nope - I don't think so for what you get. We're spending $420k for a 2 bedroom with ensuite and extra bathroom, a separate title for a car park, 3rd floor garden and city views. $420k is entry-level in the eastern suburbs and the fact that it is new and only $2k stamp duty is icing on the cake. If only I had the capacity I'd be getting another one as an IP - the 1 bedrooms are around $300k or so.
 
Sorry gcad, I'm not taking appointments for 2011 just yet, but rest assured my office is just down the road from your new appartment when time time comes :)

I just feel that the appartments are well out of character for the rest of the area. It's definitely a great location for convinience of amenities (there's also several gyms, a fish and chip shop, subway, two video stores, two butchers and bakeries, etc), but if you're looking for cosmopolitan, Mitcham really isn't it.

I love living in Mitcham, but I don't think appartment living is going to be the style for another 20 years in the area.
 
I don't disagree with you about it being out of character. There are 2 apartment complexes going up in Mitcham in the next 2 years that I am aware of - so perhaps Mitcham is changing?
 
Hey guys,
Thanks alot for your feedback...it will be interesting to see how the development of the apartments go. Since I last posted I have had an opportunity to look at some of the more detailed plans for Mitcham Village and I must say to my surprise, they are very impressive.
There is little doubt that the location will be very popular with so many things within walking distance from the complex. I initially thought parking would be a problem, but as gcad points out, most of the apartments come with a parking space.
I noticed that approx 2/3 of the apartments have already been sold - so obviously they are proving to be very popular and the prices aren't putting people off.
I do however, worry for the people who have bought a 1 bedroom apartment with the view of renting it out. With 147 one bedroom apartments in the complex, plus another proposed apartment block with a further 130 single bedroom units just down the road, renting may prove to be difficult as there is always the risk of oversupply in the area.
Never-the-less, I feel I may have been too hasty in writing off Mitcham Village Apartments. Perhaps those people who have invested in a 2 bedroom apartment may be onto a winner.
 
I just bought one for a PPOR. Which reminds me PT_Bear, can I book you in for June 2011 to do a home loan? That's when they'll be ready. I can't wait to get into it, they are literally no more than a 3 minute walk to everything I need - post office, Coles, bank, Thai food, pub... yeah that that's pretty much all I need.

PT_Bear the parking situation doesn't affect the residents of the apartments as there will be a two-level underground car park with swipe card access. I personally don't see the traffic as an issue and there are some apartments in the complex that are well insulated from the noise of the rail and road by virtue of its design - but I'll take the noise in exchange for it's perfect location.

As for it being an investment, how can you go wrong? People who work in the city will love these apartments as will people who work in the eastern suburbs or anywhere near eastlink. You've also got access to 3 major universities by rail (Swinburne, RMIT & Melbourne). I like it because it sticks out like dog's balls and it's really convenient being able to roll out of bed and walk across the road to Coles or take the lift to the lobby to get a latte. That's what apartment living is all about.

Are they pricey? Nope - I don't think so for what you get. We're spending $420k for a 2 bedroom with ensuite and extra bathroom, a separate title for a car park, 3rd floor garden and city views. $420k is entry-level in the eastern suburbs and the fact that it is new and only $2k stamp duty is icing on the cake. If only I had the capacity I'd be getting another one as an IP - the 1 bedrooms are around $300k or so.

I disagree with your sentiments - such as 'people who work in the city will love these apartments". It is hardly central living - Mitcham is 20kms from the CBD! Not a convenient location for a small apartment.

And as for your statement "as for it being an investment, how can you go wrong" - these could well prove to be a very poor investment. A block of 200 apartments does not create the scarcity you want for really good capital growth.

$420k for an apartment in mitcham is a lot of money for a tiny piece of real estate. You could have got a 2 bedroom apartment in Armadale for that money where there is high land value.
 
Mitcham is a great place to live, but it's still possible to get a 3br house on its own block for well under $500k within walking distance of this site. People are paying a premium for anything new.

That is a signal of it being a poor investment right there. If a house on a standard block is well under $500k in Mitcham- then a 2 bedroom apartment in a block of over 100 for $420k in Mitcham is crazy.

What would the proportionate value of land for each apartment - $20k? Terrible land to value content.
 
I disagree with your sentiments - such as 'people who work in the city will love these apartments". It is hardly central living - Mitcham is 20kms from the CBD! Not a convenient location for a small apartment.

As someone who has lived in the area for the past 10 years (near the station) I can say that it is easy to commute to the city for work, so in that respect it is convenient. It is also convenient in its walking proximity to shops.

And as for your statement "as for it being an investment, how can you go wrong" - these could well prove to be a very poor investment. A block of 200 apartments does not create the scarcity you want for really good capital growth.

Apartment blocks, if done tastefully, can create good capital growth. Granted this isn't Southbank we're talking about here, not by a long shot, but it is a well designed piece of architecture in an absolute ripper of a location - 20km from the CBD or not!

$420k for an apartment in mitcham is a lot of money for a tiny piece of real estate. You could have got a 2 bedroom apartment in Armadale for that money where there is high land value.

That is a signal of it being a poor investment right there. If a house on a standard block is well under $500k in Mitcham- then a 2 bedroom apartment in a block of over 100 for $420k in Mitcham is crazy.

A 2 bedroom apartment in Armadale for $420k and a house in Mitcham for $500k? I'll take it. What is the stamp duty on that? $20k-30k vs $2k for OTP. Couple that with the FHOG of $25k for building a new home and it makes the deal all the more sweeter.
 
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Apartment blocks, if done tastefully, can create good capital growth. Granted this isn't Southbank we're talking about here, not by a long shot, but it is a well designed piece of architecture in an absolute ripper of a location - 20km from the CBD or not!

Let us know how it goes over time. I honestly think these will not create good capital growth when they cost $420k, there are 200 apartments, and it is 20kms from the cbd.

I totally agree with you that apartment blocks can create good capital growth! Typically in high land value areas and where there is scarcity.
 
I can say that it is easy to commute to the city for work, so in that respect it is convenient. It is also convenient in its walking proximity to shops.
.

Agree - many people forget that this line runs express thru many stations - so the 20km gets gobbled up reasonably quickly.

Cheers,

The Y-man
 
Are you sure you can get a 3 bedroom house on its own block for WELL under 500k? That surprises me..

Edit

Just checked - you can wow - Blackburn much more expensive..
 
Are you sure you can get a 3 bedroom house on its own block for WELL under 500k? That surprises me..

Edit

Just checked - you can wow - Blackburn much more expensive..

Yes you definitely can. It won't be a new house but it's doeable. It is also possible to spend a lot more :D

I do think Mitcham is fairly well located (I'm bias, being a resident). It is 20km from the city, but it's less than 30 minutes via the freeway outside of peak times. Trains run express most of the way to the city, it takes less than 30 minutes to the loop. Just about anywhere along this train line is easy access to the city.
 
Let us know how it goes over time. I honestly think these will not create good capital growth when they cost $420k, there are 200 apartments, and it is 20kms from the cbd.

I totally agree with you that apartment blocks can create good capital growth! Typically in high land value areas and where there is scarcity.


agree with rprodrive - end of the day it's location that counts.. mitcham is now where.. just comparing surrounding suburbs doncaster has it's westfield.
box hill has its restaurants, shops and its strong migrant investment.

Wouldn't touch mitcham apartments..even if you have the FHOG.. but end of the day if it's too hard to rent out... you back in the same position as not having anything.. and with body corporate fees, mortgage payments etc.. u back to square one.

It would be differnt with the proposed box hill apartments in the unused carpark. would buy that any time....diff target market and location again.
 
The proposed box hill apartments in the unused carpark.

jcwc888,

Do you know where this location (unused carpark) is ?
any web link ?

Thanks
KK
____________________________
Trust your hopes, not your fears
 
I couldn't imagine living in Box Hill Central - it'd be akin to living in the city - which is not what I want. As an investment it's probably a good idea though. If it were next to somewhere quieter, like Mont Albert station - that'd be more my cup of tea.
 
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