New development Coburg!?

Once again, thanks for all the valuable feedback about Coburg. Really appreciated.

Just to update that I've taken the plunge, signed my life away and gotten a 2-bed, 1-bath apartment at Air Pentridge. Intended as PPOR for now, possible future rental.

The major deciding factor for me is that I have 2 years to save as much as I can before settlement, and my fixed deposits also mature next year. Which really helps towards dodging the 5% mortagee insurance and taking a smaller loan.

The second major deciding factor is that I don't have to worry (well, in theory anyway :p ) about renovations and such because the fittings are new. :eek:

I do realise that buildings depreciate, and am terrified that maybe I should have waited to save enough money for a townhouse / unit.

Opinions are most welcome. :)
 
Mazda said:
Opinions are most welcome. :)
Click to expand...

No, opinions are not required - you've done the necessary research, you have reasons, and you have made a decision. Doesn't matter what anyone says/thinks from here on - the thing is YOU HAVE DONE IT! Good on you and Congratulations. :)

Cheers,

The Y-man
 
The Y-man said:
No, opinions are not required - you've done the necessary research, you have reasons, and you have made a decision. Doesn't matter what anyone says/thinks from here on - the thing is YOU HAVE DONE IT! Good on you and Congratulations. :)

Cheers,

The Y-man
Click to expand...

Totally agree with the above.

Congratulations :)
 
Mazda. One thing to think about. If you can manage it, it might be better to use the apartment as an IP first so you can claim all the depreciation on your tax. Maybe move in after that to get the most out of it financially?
 
After a few discussions with Mazda and a ton of my own research I've taken the plunge at Air Pentridge as well. City view, 8th floor, 2 bed 2 bath.

I know it has cons but the pros outweighed it for me. It's EXACTLY the sort of place we'd like to live in 10 years ourselves and we do plan to downsize at that time.

I think it's a real 50/50 thing. It doesn't appeal to everyone, but it REALLY appeals to some people - people like me that dig the heritage and history about it.

Also, buying one of our initial four OTP works best financially for me too. Stops me spending it on something else that will cost money from day one. This thing won't be finished for 2 years.

So howdy neighbour!
 
Good work guys! The hardest step has been taken... now move forward.

Rae, you said you'd see yourself living there in 10 years time, is this for retirement or otherwise? I'm just curious, and nosey. :D

I think Coburg looks really good, well done again. :)
 
Casserole Dish said:
Good work guys! The hardest step has been taken... now move forward.

Rae, you said you'd see yourself living there in 10 years time, is this for retirement or otherwise? I'm just curious, and nosey. :D

I think Coburg looks really good, well done again. :)
Click to expand...

I don't know about what you guys think, but I generally buy with the following in mind:

I would only consider buying average flats/apartments if there is a huge differentiation in the suburb between a flat/apartment and an average house. Therefore, with this logic, I'd consider buying a flat/apartment in Toorak or South Yarra. Of course, this differentation is subjective.

Having said that, the price differentation between an apartment in Coburg and a house is not that great (at least I don't have to rob a bank to upgrade from Coburg apartment to Coburg house). Thus, I would not buy an apartment in Coburg personally.
 
I get the theory re: buying an apartment in Coburg, but we did view this one differently because it really is somewhere we'd happily live. I wouldn't live in South Yarra. I'd buy there, but I wouldn't live there by choice.

Casserole Dish: Yes for retirement. I'm 38 and working towards retirement at 50, at which point our 4 story townhouse will be too big. We need space right now because we work from home. Also, I had a brother spend time in Pentridge so it does have a personal appeal to me.

We had a look at the city view from the 6th floor and loved it. From the 8th it would be even better. I'll happily live in there and look at my favourite city from an armchair.

Next investment we do will be completely different.
 
Rae said:
I get the theory re: buying an apartment in Coburg, but we did view this one differently because it really is somewhere we'd happily live. I wouldn't live in South Yarra. I'd buy there, but I wouldn't live there by choice.

Casserole Dish: Yes for retirement. I'm 38 and working towards retirement at 50, at which point our 4 story townhouse will be too big. We need space right now because we work from home. Also, I had a brother spend time in Pentridge so it does have a personal appeal to me.

We had a look at the city view from the 6th floor and loved it. From the 8th it would be even better. I'll happily live in there and look at my favourite city from an armchair.

Next investment we do will be completely different.
Click to expand...

I commend your reasoned reply, unlike many others on this forum.

I now understand (more so) the rational behind your purchase and I think it is fine if a) you are happy to live in it b) able to appreciate the nostalgic feel and c) take in the views.

Pentridge is definitely not for me. Does not fit in with my personality so I will never understand but it has been a very popular development nonetheless.
 
Hi guys

Well done on what looks like a fabulous purchase! It has me slightly salivating, acutally, so I just jumped on the net to have a look at what's available. Of course, no indication of price range - and I don't mean to be rude, but is there any way you could give me an indicative range as a starting point? Completely understand if you would prefer not too.

Coburg's a great little hub, congrats mazda & rae.
 
Rae,

Congratulations on your purchase. My partner and I were actually looking at this development ourselves, however, the development time was a real killer for us. We also got a bit scared about the 'unknown' of an OTP so we settled for something already built in North Melbourne.

I think the development has definitely got potential. It's a shame that the site is still somewhat of a ghost town. Obviously, give it some time to develop further and it will become the hub of Coburg as it's intended to be. It will be interesting to see what Grollo has in store for the Sydney Road gentrification.

Has anybody occupied the vacant commercial tenancies at the bottom of the unit block at the site? I really do feel sorry for the people who purchased in the back part of the development because once AIR is built, they will loose their city view! =(

amazing_venice, I too have a PDF that has all the apartments prices, estimated council rates, water, BC, stamp duty savings etc + floor plans and other marketing material if you're interested. Unfortunately, it hasn't been updated with what is and isn't available. Can send it to you if you want though.

Rae, out of interest, how did they take you up to the 6th floor? If the marketing brochure is anything to go by, the view will be suburb and was what originally attracted us to the development. I assume your Unit is of the A1 design and purchase price of around $530K? I think the A1 is one of the better floorplans of the bunch.

Congrats again!
 
Hi schmick,

To view the 6th floor we were taken up to the building next door - Q2 or whatever it's called (I can't recall the name). We could see the Dandenongs view from there, but climbed over the air cond units to get the city view. It was important for me to see that before purchase and I was surprised they hadn't done with for every level with a crane or something.

They've actually changed all the pricing now too. They've put up all the prices for the south views by $40K so the asking price was $570K but I did research beforehand and said if they can give it to us for $530K (plus $9K in extras) we'd sign today, otherwise we'd buy in Richmond instead. So I guess that means we got $49K off the asking price.

We did go for the (I believe) premium layout of A1, being a corner unit offering the city view of course but also the Dandenongs. We took the warm layout.

It's definitely a ghost town right now. I had been looking at completed townhouses and was turned off for that very reason. That and I can't imagine successful rental while they have to put up with Air being built. 2 years from now it will be a different story and from what I know, most investors are obviously going for the 1BRs and owner-occupiers are going for the 2BRs so I don't anticipate any problems finding a tenant when the time comes.

I think that financially I would have been better off buying 2 x 1BR, but none of those have the views and that was an important part for me. You can definitely tell you're not too far from the city!

They've just released a few more 1BR's and I think they start at $290K.

The fact that it will take 2 years was appealing to me. It will stop me from buying too much too soon because I know I have to get finance for it in early 2012 and it will keep me in check!
 
Air apartments

Hi everyone,

I also purchased an air apartment. This is my first investment so I took the 1BR option on the 17th floor. ( the top floor)

I am also nervous but extremely excited. I purchased the property for an IP purpose but may live in it down the track.

I have visited the office a few times as I believe the building will be near there but can not see any developments and building should have commenced by now, does anyone know what's happening??

Thanks and congratulations to my fellow neighbours!
 
Congrats on your purchase. I haven't heard a peep since purchasing in Feb. Maybe send Mazda a PM because I think she keeps closer tabs on it. The longer they take the better as far as I'm concerned!
 
Hola new neighbour! :) I'm on 9th floor.

And Y-Man... don't forget the parties we're gonna have :p.

...

About the property, I visited the site a couple of weekends ago and still didn't see any digging. But developer's contact person seems to be really busy so hopefully they're finalising schedules. If nothing happens by end-July I'll drop them an email.
 
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