Rhodes - SMSF investment question

[anilroy]

Looks like there are several 3-4 year old apartments on sale in Rhodes.

I suspect the prices are a bit depressed because of the number of new apartments coming up in Rhodes. Does this make it a good investment buy opportunity from an SMSF point of view i.e. long term growth with positive gearing?

Also with the location, location, location mantra, how valuable (or not) is a lack of a car parking space when the apartment has an ideal location i.e. near to transport hubs, shopping, overlooking the water etc.

 

[Cherry Pro]

Hi Anil and welcome !

What is the purchase price of these apartments and kind of returns (yields and growth) will these apartments provide ? What level of positive gearing do you envisage and can you be assured of long term growth ? In the interim how much will it cost you to hold this property, know you will be flush with SMSF funds to pay. What are the strata levies on these apartments ?

A car space will definitely be a drawcard for a better rent but over the long term, I would think being close to transport / shops will be a huge bonus.

Continue reading the posts here ...

 

[anilroy]

Some numbers

The prices range from $460-480k, 1 Br, 1Bath, 1 car space

Strata ~ $1300 p/q

Deposit ~ $250K

Rental $480-520 pw

According to my calcs the gross yield ~5%

 

[bumskins]

That Strata seems pretty high, though I guess it depends on wha'ts included.

In terms of supply:

# They are still building in Rhodes.
# Wentworth Point across the river (Bridge between is planned). Building has virtually only just begun. I imagine it will end up with similar population/density again.
# Some planned in Olympic Park itself.

So just depends what the demand is like.
Personally I like working around Rhodes/Wentworth Point/Olympic Park everything is nice and new and clean.
Last time I was there it did look like quite a few building were in the final stages of fitout, which could mean a lot of new stock on the market at one time.
Not sure what it's like to live there, though I could see the appeal. As you mentioned a lot of close & relatively new facilities, park land, etc.

 

[datto]

Went to Rhodes recently. Felt like I was in a new city. Couldn't believe it. Have to get out more often and go further out than Carlile Ave.lol.

 

[Shahin_Afarin]

The prices range from $460-480k, 1 Br, 1Bath, 1 car space

Strata ~ $1300 p/q

Deposit ~ $250K

Rental $480-520 pw

According to my calcs the gross yield ~5%

These numbers look quite poor and you can get it almost anywhere. Why the attraction to Rhodes or these units? What's the strategy?

 

[baby blue eyes]

Agree with shahin look elsewhere.

I also would not put down more than 20% and keep the balance of cash in offset reducing the interest.

I looked at something in wentworth point like this 5 years ago, and nearly bought. Got cold feet and pulled out found better returns elsewhere.

Strata is a killer, running lifts and pools, ruins your returns..

 

[see_change]

I think Rhodes is a nice central area and they've done a good job on the aesthetics of how they've developed it , but as others have said , the numbers don't look great . Bit like Docklands . One thing to be aware of is that with the changes in Strata Laws 2-3 years ago , strata Fees are generally higher , Strata Fees used to be around the price of one weeks rent , but now they're often 2 weeks as buildings build up their sinking funds . On occasions their is a higher levee for a defined period of say 2 years which then will drop back . the agent should tell you if that's the case but ....

We lived in Concord west for a while and nearly bought in Llewelyn St in Rhodes as a PPOR 25 years ago. They have an almost inner city feel with a bit more space , better parking for visiting friends and it has good access to other parts of sydney with roads and rail

How about a really low offer ?? Something that would make it happen ?

Cliff

 

[Redwood]

Looks like there are several 3-4 year old apartments on sale in Rhodes.

I suspect the prices are a bit depressed because of the number of new apartments coming up in Rhodes. Does this make it a good investment buy opportunity from an SMSF point of view i.e. long term growth with positive gearing?

Also with the location, location, location mantra, how valuable (or not) is a lack of a car parking space when the apartment has an ideal location i.e. near to transport hubs, shopping, overlooking the water etc.

Hi Aniroy, remember with an SMSF it needs to be a 'single acquirable asset' or one part contract. Can't comment on Rhodes unfortunately.

Cheers, Ivan

 

[see_change]

how valuable (or not) is a lack of a car parking space when the apartment has an ideal location i.e. near to transport hubs, shopping, overlooking the water etc.

I wouldn't consider Rhodes Central enough to be able to do with out a car space . I'd be surprised if there were many places with no parking there.

Most of the places I'd think about no parking , would be older areas where no parking was common , so it wouldn't be such a negative for renters. Neither of our Mosman units have parking , but only two units in the block of ten have parking , but it is a around 200 mtrs to the ferry and the bus stop is almost at the front door . There is also good parking on the street and a council car park about 50 yards away so it is usually easy to park nearby. In manly it's common to have no parking.

Cliff