Richmond off the plan apartments?

Hi all,

My friend wants to buy an apartment that's currently on sale in Richmond

http://www.aplacetolive.com.au/

The place is near ikea in Victoria Gardens (not a bad location, only 4km from the CBD)

A 2 bedroom apartment for approx 500k, in my opinion it's not worth it, being off the plan, not only there are risks involved with finance, also you don't know what you are really getting apart from what they advertise.

He believes that if he pays 50k now, price will go up in 3 years when the building is complete, I believe it is not worth the trouble.

Any suggestions?
 
look everyone knows that the area around Victoria Street, near Abbotsford isn't the good part of Richmond. But $500,000 for a 2 bedroom apartment is OK depending on the quality of the furnishings. If it's cheap appliances/fixtures then it's definitely not worth it - esp. given its location.
 
The apartment will be returning approximately $400 per week.
If you paid 500k in the CBD for a 2 bedroom, return will be looking at $600 pw
 
I just had a look at the website. It looks sexy but what are the other options? how much are 1 bedroom, 3 bedroom apartments (if they exist?)
 
1 bedroom for approx $360k...but returning around $250-300 per week. Don't think they have 3 bedroom. If they did, it'd be over 600k.

No car park for $500k, car park is an additional 40k

If I had that money I'd invest in CBD instead
 
I don't mind the location of this being right next to Victoria gardens and on the tram line. Whilst it is on Victoria St it isn't right next to the restaurant area which could be seen as good or bad.

Personally I think it is a very good location for someone who wants to be close in but in a bit more peaceful spot (being near the Yarra aswell).

When I was there they quoteed $385k for a 1br including carpark. From what I understand of it the development has sold pretty well and constauction is starting in a couple of weeks.
 
I've walked past this a couple of times when at Victoria Gardens, which is a pretty crap shopping centre by the way.

It basically faces the back end of the shopping centre so she would want to check which way her apartment will be facing. No car park is a concern.
 
Remember also that part of Richmond is likely to get a lot more arguably better apartments in the near-ish future. Honeywell site on Victoria st backing on to the Yarra is getting developed I think. also the old MFB training site on the corner of Vic and Burnley.

Both those site back onto the river so will have apartments facing something both green and with water.
 
Here's another one that is close by

http://www.fdg.net.au/

I do agree that Victorian Garden shopping centre is not the greatest and apart from Ikea and tram at the front door there's not much other attractions in that area. And train station is a fair walk away
 
Shim

500k for a 2 bed in richmond/abbotsford where its returning 400 per week and has no car park. So once you add it all the additionals he would be neg gear inexcess of over 1k a month. The fact they are building in the area faster than docklands means I can't see a huge direction in CG. Has your friend lost his mind, with these type of properties being his target he is definitley a candidate for a pyramid/Ponzi scheme.
Jezza
 
1 bedroom for approx $360k...but returning around $250-300 per week. Don't think they have 3 bedroom. If they did, it'd be over 600k.

No car park for $500k, car park is an additional 40k

If I had that money I'd invest in CBD instead

Over the last 10 years the CBD has shown THE WORST CG in Melbourne.
 
Giddy-up is right - the CBD/Southbank has done very badly in terms of capital growth. But that's mainly because even though land values have gone up, you have to divide that growth by the 100s of apartments on one block of land.
 
I have always attributed the low (but still growing, not going backwards :)) capital growth in the CBD, Southbank and Docklands to the availablity of properties there. It means there's no scarcity, which usually pushes prices up. I guess when they run out of building sites prices will grow faster? I wonder when that will be?
Cheers, Medine
 
I have always attributed the low (but still growing, not going backwards :)) capital growth in the CBD, Southbank and Docklands to the availablity of properties there. It means there's no scarcity, which usually pushes prices up. I guess when they run out of building sites prices will grow faster? I wonder when that will be?
Cheers, Medine

I think Southbank is getting somewhat limited, especially in terms of land with good city/yarra views. Docklands I haven't had a good walk around in a while but I suspect it will be some time before there is real scarcity.
 
Docklands covers a large area.
We have an IP in Yarra's Edge which has now joined to Southbank and South Wharf and it is ticking along nicely.

Certain buildings seem to always have vacancies and apartments selling, ie Village Docklands (ugly building, ugly 'wintergardens') and the buildings near Ethihad Stadium can be hit and miss.

In regards to scarcity, I'd have to say it's getting harder to find a really 'good' apartment, there's still plenty of duds though ;)
 
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