Sydney CBD

Hi guys,

I tried using the search function but couldn't come up with anything. Feel free to point me in the direction though if this has been asked before.

Wanted to know what you guys thought of the pros and cons of purchasing an apartment in the Sydney CBD?

The rental returns seem pretty decent and has attracted my attention so was wondering if there was any hidden catches...

Thanks for helping out a noob!

Rental Rtns can be very good, and vancay rates low

Lenders can be shy to lend above 70 to 80 % lvr, some will do 90 % plsu on a deal by deal basis.

That financing issue may hold back cap gains a little compared to say a terrace in

Its really only in the last 10 to 15 years that living in the CBD wasnt associated with living in a private hotel, and 20 years ago people dident live in the CBD, people did business there :)


In addition to what rolf said, the strata fees are likely to be high because inner CBD units are in highrises with lifts (as a min) and also gyms, spas, pools etc.

All these are expensive to maintain - so nett yields can be low.

Compare these strata fees with a 9 - 12 pack say 8kms away, in the Inner West, where strata fees are around $550 per qtr. Railway close by and some with good village atmosphere like Croydon, Summer Hill etc - all good for CG.
You will have many choices, but I quite like the Millennium Tower on Sussex Street.

I think it's less than 10 years old so not too dilapidated like some older apartments if you dont want to spend money renovating it. The rooms are very generously sized and they come with lock-up garage and small storage area.

If you can get a property facing the back, it's not noisy. If not, double glaze windows should do the trick.

Recently, a one-bedder (around 70sqm) in that complex was sold for around $500k and it rents out for around $550 (and you can rent out the garage separately - not sure what the going rate is but surely at least $40/wk?)

A quiet north-facing two-bedder (120sqm including garage) was recently sold for around $650k and can be rented out for $750-$800.

Both are in very good conditions ready to move in. They appeared to be the better units in the building (position and layout wise), so if it's for investment you might be interested to look at some of the other units in the complex for a bit less in price.

There will probably be many other options in the city with better returns, but this one is worth an inexpection for comparison purposes.