Opinions please..about to put in an offer.

[Mel22]

Hi all.

Been looking at buying my first IP for a while, but analysis paralysis hit.

If anyone could please share any opinions on this property it would be GREATLY appreciated. Aiming for reasonable CG and good rental return...likely? Any negatives that a more experienced eye can pick that I may have overlooked? Positives?

http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Port-Melbourne/?adid=2009318624

Thanks in advance guys, this is a great forum. Massive lurker here, but I hope to be able to contribute more soon enough!

 

[Empty Pockets]

Maybe we could start with what you see in it.

 

[Aaron_C]

Hi Mel22,

Port Melbourne is a great area. Although I would expect a lower rental return because it is a top-floor property (renters don't pay top dollar for views). I personally like it as it's dual level and with nice views and TWO car spaces - a real rarity in apartments.

But some key questions for you:

1) Facilities?
2) Body Corp Fees?
3) Expected rental income?
4) Internal Area?
5) How much do you think it's worth? any comparable sales in the building/area?

 

[Mel22]

Sure.

Bayside, proximity to CBD, generally nice area, good rental return, fair potential for CG I think - more slow and steady I am guessing and looking long-term here, nice apartment in comparison with others in the complex, two parking spaces.

 

[Aaron_C]

Sorry I didn't see the first part of your title...I would not put in an offer before the auction...it shows your hand too early. Wait for the auction and see how it turns out.

 

[travelbug]

There are 906 of them???

 

[Don K]

Nice to have second living area. One more vote for wait till auction. Still Melbourne market is very slow so it may pass in. Hope you are not falling in love with this property.

Have you crunched numbers? What is the net yield like?

 

[The Y-man]

There are 906 of them???

No... Same as hotel numbering systems <floor number> + <unit/room number>

So 906 would be unit 6 on the 9th floor.

The Y-man

 

[SeafordSunshine]

vacancy factor


Hello,
I think .. how long will it be vacant for?
How many people are looking to rent that kind of place?
Is there much of a market for them?
If you are the lucky purchaser, and it settles in the next 6 weeks that brings us into the 'dead zone for renting'
otherwise known as Christmas.
I am sure you want to put a tenant in there from day 1 (so they can pay off the mortgage for you!)
What is the profile of the rest of the occupants?
Are they people who don't celebrate Christmas?
Then you can ignore my concerns!
Best of luck!
(mostly its research though)
SeafordSunshine

 

[BayView]

What are:

1. Body corp fees
2. Rental yield
3. Rates
4. Insurances

How much are you borrowing as well?

If all the above add up to lots of neg cashflow each week (depreciation will soften that blow a little), then all the cap growth in the world is no fun if you are broke every week trying to hold it.

Look into a fully-furnished Corporate rental for this as well; could be more lucrative?