Hi Raygun,
I'm new to this forum, but I've been advised buying new & especially off the plan is generally not as financially good as buying an older property.
I've been told this is because you can value-add to an older property whereas there's no scope to improve a new one (ie reno's extensions, facelifts).
Also, as others have already said, you're paying a premium price to the developer etc...don't believe what they're saying about a bargain!
Also, there are a lot of overheads (gym, lift, carpark hoists) in new apartment buildings...higher body corps etc.
Also, older buildings seem to appreciate (on the whole) faster than new ones. (Please feel free to correct me here as I'm no specialist by any means, just what I have read).
Also, newer apartments are attractive to renters, but quickly lose their appeal once an even newer block comes on the market. Then you're faced with competing with the other owners in your block for tenants...not good if it's a large block ie over 30 apartments.
I think you'd be better of buying an older property for that amount. It will have some scarcity value to it as it's not going to be exactly the same as 20 others in your block.
St Kilda east I think is fantastic - great growth, no problem finding tenants, quite trndy for a while now, but also look at elwood (similar feel & prices & also near the beach) & elsternwick..both a bit more laid back than St Kilda east, but same leafy feel to suburb, close to great shops & beach!
Probably around $430 for a decent 1BR with courtyard & OSCP in smallish block (one went in Mitford st last week & a friend attended. EPR was 330K - 360K! Furious bidding from several bidders). Was approx 60plus square metres not incl the courtyard.
PS 1 & 2BR's are getting around the same rental returns at the mome.
best of luck, very exciting time for you! Let us all know how you go!