Purchasing in Melbourne

Congratulations Rolf!
It looks fantastic. That's your second purchase with Metropole in a short time am I right?
 
Hi Rolf,

Of course, well done on another purchase, and thanks for sharing it on the forum.

Just a question for some positive discussion perhaps: Why do you, or Metropole, believe this type of property in this suburb and location will be a good investment?

You say it was below asking price, but was it below market value (based on comparable sales)? Sometimes asking prices don't seem very accurate to me, ie, the vendor 'asks' or wants too much.

When you add the cost of buyer's agents fees (?10k), is it still below market value (rather than asking price)?

GSJ
 
Sorry, Rolf - but makes Queensland look good! Where are the windows, where is the light? Where are the indoor/ourdoors areas. I own one nearby to this, but glad I started buying in Queensland.
 
Hiya,

Congrats, Rolf! This is excellent news :D

I am sure that it will be the wealth-creating machine that you hope it to be; well done!

Cheers

James.
 
Well Done Rolf, Looks like a great low maintenance IP.

For my own benefit, why isn’t there a body corporate ?

Cheers
Adam
 
Congrats Rolf. Will be very interested to know what typr of rental you are expecting from this and your rationale behind buying this type of property...

thanks-
 
Hi,
after having received quite a few e-mails and PMs as well as a few forum replies I thaught I give you a short overview of the sequence of events:

  • First meeting with Metropole in July 06; did not sign agreement since we were not ready yet
  • Second meeting with Metropole in Dec 06 and signed agreement - I must say that we never had any pushy sales call during the whole period asking us to move quick or sign up - I really think this is professionalism at a very high level
  • After dicussing my (very narrow) requirements; Metropole started the search - my parameters were specific suburbs, low maintenance, fairly new for depreciation purposes, off street parking and no body corporate, close to the CBD, schools and public transport - all this based on Metropole research as well as my own research
  • I dealt mainly with Bryce Holdaway and found him to be very helpful and professional; during the whole process there was never any hard core sales tactics or pressure put on me to sign up quick.
  • They were able to source the property well below asking price and below market value based on recent data from APM, REIV and Residex.
  • The estimated rental is $410 per week
PS: Of course I use the best finance broker in Melbourne - Rolf S :):):)
 
Adam,
the reason why there is no body corporate is as follows:
  • The actual vendor built the property himself and the property is a parent title rather than a strata title...
  • so no body corporate was required despite there being three townhouses side by side - which was a bonus for me given our experiences with body corporate previously...
  • there is a common wall shared and it does not affect any living areas... it is the garage wall that is shared with the townhouse to the south of mine...
  • we have no shared walls to the north
 
Some people also wanted to know how I finance it:
  • 95% LVR + LMI (I want to preserve my capital for more purchases in the next couple of months)
  • St George
  • Fixed for 3 years @ 6.95%
  • Interest only
  • HDT holding structure - big thanks to DaleGG & JamesGG
 
Sounds cheap... certainly won't get anything like that in Perth within 5kms of the city for under 500k. Is there any land with this property? What's the block size?
 
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