Small 1 Bedroom unit inner city
- Thread starter sammmeee
- Start date
In Sydney, I think this area would be Ultimo which is full of high-yield 1 bedder studios.
* High-yield
* Low CG
* Very little potential in the future
Alternatively, I actually live in a 1 bedder apartment a bit further away but within 5K of Sydney City. I bought in 09/10 for 520K and it just got revalued at 630K so that could give you a bit of an idea.
EDIT: I should add that my 1 bedder is actually 60+ sqm so quite big for its type...
* High-yield
* Low CG
* Very little potential in the future
Alternatively, I actually live in a 1 bedder apartment a bit further away but within 5K of Sydney City. I bought in 09/10 for 520K and it just got revalued at 630K so that could give you a bit of an idea.
EDIT: I should add that my 1 bedder is actually 60+ sqm so quite big for its type...
Depends what the market is after.
I say I prefer 2 bedroom apartments due to xyz. Yet I met a lady who built a huge block of 1 bedroom apartments after her research showed the 2 bedders were harder to rent.
So it really is site specific. At 5km from a capital city CBD, chances are yours will rent fast and easily assuming it's near transport and shops. Your issue as you already pointed out is borrowing from the bank and the associated low capital growth, and the strata fees will eat a lot out of your rent.
I say I prefer 2 bedroom apartments due to xyz. Yet I met a lady who built a huge block of 1 bedroom apartments after her research showed the 2 bedders were harder to rent.
So it really is site specific. At 5km from a capital city CBD, chances are yours will rent fast and easily assuming it's near transport and shops. Your issue as you already pointed out is borrowing from the bank and the associated low capital growth, and the strata fees will eat a lot out of your rent.
If it's a brand new shoe box built for students I would steer clear.
Im looking at 42sqm 1 bedder 1960's unit low strata fees.
Has a very high walkscore..close to all amenities.
I like it as the figures do work BUT have never looked at a 1 bedder before. Resale also means you limit your buyers to those with a larger deposit ect..ect
Needs renovating which is our bread and butter..
Has a very high walkscore..close to all amenities.
I like it as the figures do work BUT have never looked at a 1 bedder before. Resale also means you limit your buyers to those with a larger deposit ect..ect
Needs renovating which is our bread and butter..
We've purchased a number of 1bedder units lately for clients (due to their wanting to be in the Inner West but with a limited budget <$450K). None have had any issues getting finance or having to put in a larger than normal deposit.
I think there are a few lenders that will do this now.
I think there are a few lenders that will do this now.
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are you talking some og those highgate/mt lawley walkups? they have typically had pretty good growth and rent out quite easily, i know a few people who have done well investing in them.
i believe Marisa/MTR knows the area/market quite well, she might be able to confirm.
I bought very similar in Toorak, VIC. CG was great, doubled in about 5 years.
Yes, not the high rise ones.
I have a tiny 1 bedroom apartment in Potts Point.
I bought it in 2009 when no-one was buying and I got it for $217K. We put in a lowball offer of $215K and the agent laughed. I told him I had cash. He rang back 2 weeks later (owner needed the cash quickly). We were looking at studios which were going for $235K. It's had excellent CG.
It's in a block of 12. It used to be a boutique hotel.
I bought it in 2009 when no-one was buying and I got it for $217K. We put in a lowball offer of $215K and the agent laughed. I told him I had cash. He rang back 2 weeks later (owner needed the cash quickly). We were looking at studios which were going for $235K. It's had excellent CG.
It's in a block of 12. It used to be a boutique hotel.
It's had excellent capital growth compared to other properties which could have been purchased at the same time for $215k or surprisingly good CG given it's an apartment? If you had your time again would still have been your choice? I'm curious about many apartments around Potts Point and Darlinghurst and see high yields but low CG.
One Bedroom small
Personally I prefer 2 bedroom apartments. However if you lie the idea of a one bedroom I would not buy anything less than 5o m internal space. Anything a lot smaller you will struggle with resale.
Also consider that in many major cities especially Melbourne there is an over supply with small apartments coming out of the ground. Stick to established apartments in inner city areas.
Personally I prefer 2 bedroom apartments. However if you lie the idea of a one bedroom I would not buy anything less than 5o m internal space. Anything a lot smaller you will struggle with resale.
Also consider that in many major cities especially Melbourne there is an over supply with small apartments coming out of the ground. Stick to established apartments in inner city areas.
I had one on the LNS, it doubled in price and had only a couple of tenants over the years.
I bought a tired nd run down 1BR unit in Neutral Bay. I did minor cosmetic reno that cost about 10% of the purchase price.
I was able to get a reasonable yield due to the improvement and sold after 2 years for a 35% improvement in price.
It is tru that it will be alittle harder to sell and possibly finance. However it is alos true that it will be cheaper and therefore more affordable to potntial renters or purchasers down the track.
So having done it once before and not being burnt I would certainly consider it again.
Cheers,
Dwight
I was able to get a reasonable yield due to the improvement and sold after 2 years for a 35% improvement in price.
It is tru that it will be alittle harder to sell and possibly finance. However it is alos true that it will be cheaper and therefore more affordable to potntial renters or purchasers down the track.
So having done it once before and not being burnt I would certainly consider it again.
Cheers,
Dwight
My thoughts exactly.
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