St Kilda East...good Capital Growth??

[Ash1012]

Hi guys,

Hoping to get some invaluable advice and opinion..I'm a FHB and deciding to take the plunge in the property market. I wanted to get people's thoughts on St Kilda East.

2 of the apartment's I've had a look at are:
http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114856923
http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114833315

My partner and I plan to live in the apartment for the next 4-5 years and then hopefully convert into IP. The question I have, which may not be a straight forward answer, is whether with the supply of apartments in the St Kilda East area what sort of CG can we expect to see? We really like the area however, I can't help but think how much more can an apartment appreciate?

Are there better areas etc, purely from an investment and growth point of view that we could potentially look at for our budget of ~500k? Even though we will be living in the apartment, and at the end of the day it will be home, considering it's our first purchase we are really confused about things such as whether the purchase will be a good investment from a growth perspective. We don't want to over think it as well but would definitely like to get to know what some experienced people have to say about the above.

Thanks

 

[Aaron_C]

There's not that many new apartments going up in that area. Besides, the apartments you have listed are basically normal 60s styles walk-up units for that area and are unlikely to directly compete with new developments.

 

[Ash1012]

Thanks Aaron..

From a growth point of view, do you think it's a good investment purchasing an apartment, as above, in St Kilda Aast or would you say realistically there would be more growth in a house/townhouse further out such as Oakleigh.

I know there's a lot of variables in such a comparison but in a nut shell for the same budget of ~500k - 520k would you get an apartment or a house/TH??

 

[starter]

I own an apartment and a house on the other side of Danenong Rd in Prahran. The apartment has outperformed the house CG wise the last couple of years.

I think an apartment in St Kilda East will be a solid investment going forward, probably won't see any huge boom in prices but rather steady growth.

You should also make sure that the loan is IO with an offset, that way you can easily convert it to an IP in a few years.

 

[Jake Milne]

Hi guys,

Hoping to get some invaluable advice and opinion..I'm a FHB and deciding to take the plunge in the property market. I wanted to get people's thoughts on St Kilda East.

2 of the apartment's I've had a look at are:
http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114856923
http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114833315

Thanks

The area is above average for growth... Predictions are about 6% for the next 5-8 years. This is above Melbourne's overall predicted growth of 4-5%.

The problem though, is both of those buildings you've selected are terrible. I inspected that one on Alma about 2 months ago off market and was really underwhelmed.. The block is tired and feels like an investor ghetto in my opinion.

Plenty of better ones for low 400's. I've an off market right now on Inkermann for $420,000 that's better than both of those AND cheaper. Also... Check out http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114628251

Cardigan passed in at auction and should be worth $460ish but the vendor is motivated and will sell for $420 - $440...

 

[LoneWolf]

The area is above average for growth... Predictions are about 6% for the next 5-8 years. This is above Melbourne's overall predicted growth of 4-5%.

The problem though, is both of those buildings you've selected are terrible. I inspected that one on Alma about 2 months ago off market and was really underwhelmed.. The block is tired and feels like a ghetto in my opinion.

Plenty of better ones for low 400's. I've an off market right now on Inkermann for $420,000 that's better than both of those AND cheaper.

PM me the details Jake for the Inkermann?

 

[Ash1012]

The area is above average for growth... Predictions are about 6% for the next 5-8 years. This is above Melbourne's overall predicted growth of 4-5%.

The problem though, is both of those buildings you've selected are terrible. I inspected that one on Alma about 2 months ago off market and was really underwhelmed.. The block is tired and feels like an investor ghetto in my opinion.

Plenty of better ones for low 400's. I've an off market right now on Inkermann for $420,000 that's better than both of those AND cheaper. Also... Check out http://www.realestate.com.au/property-apartment-vic-st+kilda+east-114628251

Cardigan passed in at auction and should be worth $460ish but the vendor is motivated and will sell for $420 - $440...

I agree the Alma Rd block is completely rundown, was just one of the apartment's we had seen last weekend. I had a look at Cardigan a few weeks ago, decent apartment but the location is not that great; quite far from public transport.

Can you PM me the details for the Inkerman property as well?

 

[Jake Milne]

Sorry Ash/Lonewolf the off market properties are reserved for my clients. I can only tell you that it's one of the apartments is in 338 Inkermann.

Also keep an eye out for 22 Westbury Grove, St Kidla East. There's a 2 bed apartment with courtyard that will be coming onto the market soon.

I understand what you mean about Cardigan.. if you'd consider the street there is another one coming up in 13 Cardigan which is a 2 bed apt and will be high $300s which is pretty cheap.

Plenty of new stock will be hitting the market this month.

If you're happy to look in other areas 2/20 Cumming Street http://www.realestate.com.au/property-apartment-vic-brunswick+west-114819843 just sold last night for $421,000 ...One of the recent sales in the same block (after renovation) went for $484,000... there'll be profit in that deal.

There are similar priced units coming up here too.