one bedroom apartments/Sydney

[Shelly]

I'm wondering if anyone has information about one bedroom
apartments in the Potts Point,Elizabeth Bay areas of Sydney?

In fact out of these suburbs which one would be the best bet for a one bedroom unit,
Potts Point,ElizabethBay,Darlinghurst,Woolloomooloo,
Rushcutters Bay?

I'm not really interested in studios.Or should I be?I understand there is a size requirement when borrowing from most lenders.

I've got the general idea,close to transport,north facing etc.

What I'm not clued in about is the capital growth of these types of
investment properties.
The rental vacancies(naturally depends on the area etc).I'm talking resonable unit in a fairly good street.

Does any here own one or two?Are you happy with your investment so far?
Cheers Shelly

 

[Sam_H]

Hi Shelly

Im a big Potts Point/Elizabeth Bay fan. By that I mean I have spent considerable time talking to RE Agents/develeopers/friends living in the area and also people who have invested in the area.

To answer your questions (note this is simply my opinion!)

# Best suburb.....tricky question...and impossible to answer.I beleive they are all worth looking at

# Studios....I don't personally like them....but if you do have the deposit/equity (banks will require at least 20% deposit)-I have friends who have found their puchase price very affordable, high yielding, with a very low vacancy rate. Even cap gains in last few years (but what hasnt?)

I think 1 bedders are the go. Nothing less than 55m2. One friend has had a 1 bedder in Potts Point (Macleay Street) and has not even had 1 weeks vacancy in 5 years!!

Plus you will more likely get better tenants...like a prof couple in a 1 bedder verses some crazy single person living in a studio (why would you ever live in a studio??)

# Cap growth......which is influenced by changing demographics.In Potts Point for example...there are many large developers building now-targeting the high end of the market.This will encourage high income earners to buy in...which will ultimately see good cap growth


Hope this helps...if you want street specific info -please PM me -Im happy to help!

Cheers

Sam

 

[Donna L]

I've had a studio in Potts Point for about eight years and am only just selling it now. Vacancy is not an issue. I have had three tenants in eight years and one week of vacancy. You need to be very careful though as the picture can change literally from street to street. They may look identical to you but the locals know better. Where possible stick to north of Greenknowe Ave. I personally would prefer Potts Point, Rushcutters Bay or Elizabeth Bay to Darlinghurst or Woolloomooloo but people have different views. The only reason I am selling is that it was the first IP we'd bought and it was an old Art Deco which is very popular but no depreciation, rising maintenance issues due to old building fabric etc. Capital growth has been about 6-7% p.a. Personally, I would go for the 1 bedder too as I think you will get better capital growth and depreciation. Anywhere between 300 to 450K depending on whether new, refurbished and area etc. Good luck.

 

[bbruham]

Sam_H & Donna L,

My daughter loves that area for living and investing. But, with all those hotels being converted into units, is there going to be a flood of rentals there?
Potts Point could end up like Chatswood.

I have an investment at Chatswood and these developers are flooding the whole area with units. Mirvac is building eight towers of units(562 units in total) over the railway line. Another mob will be building three tower blocks. All in preperation for the Parramatta/Chatswood railway line. (They've started to build the tunnel under the Lane Cove River).
So with developers like Meriton,Mirvac etc going crazy with buildings Chatswood is already a concrete jungle.
Their half-wit mayor says this is great. All part of the master plan.

This is one of the problems you have with buying units in most of Sydney. You can be swamped in no time flat!!

Some areas are so carefully guarded by the locals, councils only dream of doing "Chatswoods" in their areas. Think of all those council rates flooding into their coffers.
Manly has one of the best councils going. Can't do a thing there without being grilled over the smallest of alterations.
"Friends of Manly Group" control the council.
Good on you Manly Council!!!!!!

BBruham.

 

[Shelly]

Thanks B,very good information.
I'm glad Manly is so pro active.
Who needs more concrete jungles as you say.
Cheers Shelly

 

[Sam_H]

BBruham

Point taken
I guess thats why Ive chose to invest and live in manly

Regards


Sam

 

[hobgoblin]

Hi Sam_H

Plus you will more likely get better tenants...like a prof couple in a 1 bedder verses some crazy single person living in a studio (why would you ever live in a studio??)

Are all single people crazy? ...or just fussy about who they share their life with???

I lived in a studio quite happily for 12 months, and was sad to leave. It was the best place I ever lived in! I'm not sure why you have something against studios, but from my experience in dealing with a 450 unit apartment block where the units ranged from 16m - 55m squared, the smallest ones were NEVER vacant. The 16m - 20m square units were by far the most popular. The larger ones were sometimes vacant. People renting these types of places want to save money, so they are looking for small and cheap. In addition, if you whack some el cheapo furniture in there, you can charge 6 weeks rent for bond instead of just four. So, if they DO trash the place, you can more than cover your costs

Shelly, I think you need to look at each property as an individual, and not generalise about these things.

 

[Sam_H]

Hi Hobgoblin

I didnt say all single people are crazy ??

16-20m2 ....hmmm...all yours!


Sam