new development in Reservoir

[Rizwan]

guys i was interested in purchasing this investment property in Melbourne Reservoir. I am from sydney and not too familiar with the melbourne market.

the IP im interested in is a 2 bedroom off the plan apartment for $350,000 comes with some furniture and rental guarantee of 5% for thre first year it is due for completion in August 2009. if you go to the developers website www.opuland.com.au and select capri apartments this is the actual development im interested in.

Please let me know what you guys think any thoughts or advice would be good.

 

[The Y-man]

guys i was interested in purchasing this investment property in Melbourne Reservoir. I am from sydney and not too familiar with the melbourne market.

the IP im interested in is a 2 bedroom off the plan apartment for $350,000 comes with some furniture and rental guarantee of 5% for thre first year it is due for completion in August 2009. if you go to the developers website www.opuland.com.au and select capri apartments this is the actual development im interested in.

Please let me know what you guys think any thoughts or advice would be good.

Some things that worry me:

1. new apartment in a traditionally "non-trendy" house-with-backyards suburb (probably changing, but you will be bleeding edge)

2.OTP (well people here know my view of OTP - especially in what I consider a "toppy" market)

3. elevator (uggh)

4. Rental guarantee (eeww....)


Seriously,

Why not buy a house?
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=42809631&s=vic&tm=1205111326

Cheers,

The Y-man

 

[The Y-man]

Now this is from the website:

Capri Apartments is the first luxury apartment building in Reservoir.

Doesn't this worry you?

Our standard building features resemble New York style apartment buildings.

Note the house in the previous post - that is sort of typical of the area. NY style apartments may not quite fit into the landscape.


• Fully secure building with offsite monitoring
• Elevator to all levels

Both of these are expensive ongoing items - with so few on the block, the costs may be into the thousands per year.

Cheers,

The Y-man

 

[Rizwan]

reservoir

I agree with what you say especially with the house it would be a far gretater investment.
My onbly concern is that i need something new purely for the reason there will be no costs associated with repairs and maintenance and renovations this is something i need to avoid for the time being as this would be my first IP and im abit tight in terms of cash flow. So i need something with low vacancy and low unexpected costs such as repairs and maintence.

After this in a couple of years when im in a more secure financial position i want to look for houses that need rennovation jobs etc.

 

[shermy]

Hi Rizwan,
I live in this area, in Northcote, and looking at the map I notice that this development is right at the backend of Reservoir - which is a big suburb. If it was at the CBD end (near Preston/Regent), maybe it'd be worth a second glance. The blurb from the developers mentions exciting attarctions like the cafe's and shopping of High St Northcote. That's a 20 minute drive away on the weekend - traffic can be a real snarl.

As Y-man points out, this is a non-trendy house and backyard suburb. Some houses have been going for under 340k and maybe with the jitters felt over the last 3 weeks in the market therecould be a better chance of picking up a bargain. The blocks are generally on the large side.

Investors have been moving in to Reservoir over the last 18 months and buying some of the old 70's brick veneers on the big blocks. But the type of developments we're seeing are more in the line of 2 or 3 townhouses and duplexes.

This NY style apartment is more suited to the inner inner suburbs. I'm just getting a fish out of water vibe on this. It'd be the same as building trendy NY loft style apartments in Blacktown - it's not the market.

If you're interested in the area, search out units in Preston, Thornbury, Heidelberg area. Good transport, close to the Uni, close to shops and a lot closer than the back of Reservoir

Hope that helps

 

[Rizwan]

reservoir

Thanks Shermhy and y-man i think ur comments make alot of sense to me now. I had my doubts over this investment as well and not knowing too much about the are was abit confused.

I have a mate who lives in Hoppers Crossing and she tells me house prices are very cheap over there and its a good area only 30 mins from the city by car. My first impression was that its abit too far from the city to get the rental demand im after.

What do u guys think?

 

[shermy]

I really don't know too much about Hoppers Crossing other than it has a lot of new development and CG may be a problem. Also, access to the CBD is mainly over the Westgate Bridge and that's running at capacity now. It'll take years before another bridge is built and traffic will keep increasing.

 

[The Y-man]

I have a mate who lives in Hoppers Crossing and she tells me house prices are very cheap over there and its a good area only 30 mins from the city by car. My first impression was that its abit too far from the city to get the rental demand im after.

What do u guys think?

There's a station that has trains to the cty

As for driving - well driving into the City from Reservoir isn't a task for the light hearted.... (well that's my view of it!)

Cheers,

The Y-man

 

[oc1]

There's a station that has trains to the cty

As for driving - well driving into the City from Reservoir isn't a task for the light hearted.... (well that's my view of it!)

Cheers,

The Y-man

Mate, its 11 km from the city! Straight down St. Georges Rd. Too easy.

 

[long88]

Remember there is no freeway, did you count how many traffic along st georges rd ? and the traffic jam encountered.

 

[oasis1frog]

I lived in Fitzroy North, that St George road is a pain.

 

[The Y-man]

Mate, its 11 km from the city! Straight down St. Georges Rd. Too easy.

Yeah, I was actually thinking Sydney Rd for some reason.....

Cheers,

The Y-man

 

[oc1]

Remember there is no freeway, did you count how many traffic along st georges rd ? and the traffic jam encountered.

I must be special....it's pretty easy.

 

[The Y-man]

I must be special....it's pretty easy.

Come on, admit it - you are driving at 3am right?

The Y-man

 

[oc1]

Come on, admit it - you are driving at 3am right?

It's hard being a celebrity