The heat in Melbourne's Inner City Property Market continues.

[timmyboy]

Hi Tim,

Congratulations ont he purchase in Footscray! Do you mind sharing details? I know the area well and have been following the market closely. I bet there was a fair bit of competition. Did you buy at auction?

Footscray has had a big jump in the past 12 months but I think it still has some legs in it. Good work.

Ozi

G'day Ozi,

I had been looking at and contemplating Footscray for a couple of months early on in this year, but lost interest as I was priced out based on auction results and info I gathered.
However the opprtunity to purchase off the plan in a small development arose....so against what seemed to be a slight majority opinion at the time -and probably to a degree my own self doubt about whether it would be a good or bad thing - I jumped in.
It's in a block of 18 on Droop St.
Comparitively speaking, I cannot fathom how to judge the price I paid or the potential gain from a brand new, 2 bed, car bay, small development, apartment/unit against the auction advertised 2/3 bed "workers cottages" (this is the term I personally use to describe them as this is how they are referred to over this end of the world ), which have the land content but require extensive renos to bring them up to standard and always sell for a lot more than initially advertised.
Footscray is earmarked as a transit city in the 2030 plan, has already undergone some degree of improvement and has state funds allocated to continue improving I believe....
I suppose I based a lot of my faith in the area from seeing the same types of suburbs in Perth improve dramatically in stature over a period of time - it's what....3-4klm's and 4-5 stops from the cbd of melbourne?
Whilst I am still wary of the OTP bit coming back and biting me in the bum, I am hopeful and quietly confident that over time, the natural progression and improvement in the area will pay off.
After all, the folks who want in to Yarraville, Seddon, Kingsville etc but get priced out of there will take the next best option - Footscray I hope...

Cheers

Tim

 

[ozi]

Hi Tim,

Thanks for the info. I know the development you are talking about and that is a great pocket you purchased in. The only negative of Droop st is that being a main road, it gets quite busy and traffic can be a nightmare. On the otherhand though, you have a tram stop at your door step, you are walking distance to Footscray central shops, VUT, Footscray Park, Flemington race course, Maribyrnong river and the CBD is about 6km away. The rents are also sky rocketting in the area so you might even get much higher rent that what you are currently projecting upon completion, thats if there isn't a rental guarantee in place (?).

You seem to have done your research and I'm sure you will do well if you hold onto it long term.

Cheers,
Ozi

 

[timmyboy]

Hi Ozi,

It's good to hear that rents are on the up.
I'm lucky enough to have had my brother in law move to melb recently and he is going to rent from us - saves the need for a pm and all associated fees.
There was no rental gaurantee for these units, but I anticipated being able to rent it for $320 - 350 pw.
I see some others in the development advertised on RE.Com for $350 pw so it will be interesting to see if it is achieved.

Cheers

Tim

 

[jingo]

Melbourne Market hots up on Election Day!

According to today's papers the Melbourne market achieved a clearance rate of 81% for 653 auctions. Agents reported that there were fewer properties on the market due to the election. But the properties that were auctioned yesterday achieved very high results - further testament to the pent up demand in the current Melbourne market.

Here are a few samples from yesterday's results:

This single-fronted weatherboard at 51 Westbourne Rod, Kensington sold for $945,000.

http://www.realestate.com.au/cgi-bi...eader=&c=22983662&s=vic&snf=ras&tm=1196000830

According to (pg 3) the domain section of 'The Sunday Age' (25/11/07) a similar property had sold for $768,000 four months ago.

In Hawthorn East, an unrenovated Victorian property at 1A Wiseman Street sold for $4.01 million. The house was a 4-bedroom built around 1860. The final price was $600,000 higher than the expected price. ('The Sunday Age', Domain Section, pg 3, 25/11/07).

http://www.realestate.com.au/cgi-bi...eader=&c=33550350&s=vic&snf=ras&tm=1195999868

A two-bedroom art deco apartment at 2/25 Goldsmith street in Elwood sold for $588,000. The apartment was bought by the vendor last year for $450,000, and no improvements were made. ('The Sunday Age', Domain Section, pg 3, 25/11/07).

http://www.realestate.com.au/cgi-bi...header=&c=2681742&s=vic&snf=ras&tm=1195995314

The median price in Elwood has increased by 57% over the past year from $700,000 to $1.1 million.



So it would seem, for now at least, the market continues to defy the subprime crisis, high oil prices, latest interest rate rises and the change in government. We shall see what happens in the months ahead......

 

[Soren Lorenson]

Went to this one on last weekend 24th nov

http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104409851&s=vic&snf=rbs&t=res

it was originally listed at 460+ for the first week,

2nd week onwards, it went to 480+ and stayed at this.

Got inspections done, it is a very nicely renovated 2 bed 2 storey townhouse in a block of 8, Winter St. in Malvern, just off Glenferrie Road etc, very nice, no issues really on the body corporate etc, 1000 per year BC, 750 rates per year, stonnington council, single lock up garage on title too, quite nice,

I bid twice, there was about 6 or so bidders interested, but it finally sold for $596,500, well above expectations, i thought 550-560 it would sell for, but this chick wanted it badly and paid for it. i'm sure she will enjoy it.

reckon i can do more with 600K than buying a 2 bed townhouse in malvern, i'm open to correction though

 

[JIT]

A two-bedroom art deco apartment at 2/25 Goldsmith street in Elwood sold for $588,000. The apartment was bought by the vendor last year for $450,000, and no improvements were made. ('The Sunday Age', Domain Section, pg 3, 25/11/07).

http://www.realestate.com.au/cgi-bi...header=&c=2681742&s=vic&snf=ras&tm=1195995314

3 years ago when I was looking here this type of apartment was going for 340-380k!

 

[Soren Lorenson]

JIT, Jingo et al,

it looks like a lot of inner city properties have doubled in last 3 years this is making me think, not to purchase in the inner city, the prices surely must be close to peaks if not already peaked and will likely be flat for some time? maybe over the next few years? time to buy 15km+ from the CBD and pick up last of the ripple before the ship steadies?

 

[feihong]

JIT, Jingo et al,

it looks like a lot of inner city properties have doubled in last 3 years this is making me think, not to purchase in the inner city, the prices surely must be close to peaks if not already peaked and will likely be flat for some time? maybe over the next few years? time to buy 15km+ from the CBD and pick up last of the ripple before the ship steadies?

that was exactly what I've been thinking, and have acted accordingly. However, there are probably still some values left in inner north west which are still less than 15km from CBD, which are very purchasable for people who have already built up considerable equity.

 

[Soren Lorenson]

that was exactly what I've been thinking, and have acted accordingly. However, there are probably still some values left in inner north west which are still less than 15km from CBD, which are very purchasable for people who have already built up considerable equity.

inner north west? what suburbs do you mean? i've seen good rises in coburg/preston/ascot vale recently

 

[feihong]

inner north west? what suburbs do you mean? i've seen good rises in coburg/preston/ascot vale recently

to the best of my knowledge, oak park, avondale height are still quite ok.

 

[buzzlightyear]

According to today's papers the Melbourne market achieved a clearance rate of 81% for 653 auctions. Agents reported that there were fewer properties on the market due to the election. But the properties that were auctioned yesterday achieved very high results - further testament to the pent up demand in the current Melbourne market.

Here are a few samples from yesterday's results:

This single-fronted weatherboard at 51 Westbourne Rod, Kensington sold for $945,000.

http://www.realestate.com.au/cgi-bi...eader=&c=22983662&s=vic&snf=ras&tm=1196000830

According to (pg 3) the domain section of 'The Sunday Age' (25/11/07) a similar property had sold for $768,000 four months ago.

In Hawthorn East, an unrenovated Victorian property at 1A Wiseman Street sold for $4.01 million. The house was a 4-bedroom built around 1860. The final price was $600,000 higher than the expected price. ('The Sunday Age', Domain Section, pg 3, 25/11/07).

http://www.realestate.com.au/cgi-bi...eader=&c=33550350&s=vic&snf=ras&tm=1195999868

A two-bedroom art deco apartment at 2/25 Goldsmith street in Elwood sold for $588,000. The apartment was bought by the vendor last year for $450,000, and no improvements were made. ('The Sunday Age', Domain Section, pg 3, 25/11/07).

http://www.realestate.com.au/cgi-bi...header=&c=2681742&s=vic&snf=ras&tm=1195995314

The median price in Elwood has increased by 57% over the past year from $700,000 to $1.1 million.



So it would seem, for now at least, the market continues to defy the subprime crisis, high oil prices, latest interest rate rises and the change in government. We shall see what happens in the months ahead......

Let me add another one to the list.

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=44209279&s=vic&tm=1196474280

Forgetting the quoted ESR of $680-740k, the auction started at $740k. (that's another issue!), it was on the market at $810k and sold for $920k.

There was another story (from a family member, so I believe them), of a commercial property (on High St. Preston - Melb), it was purchased in 2004 for $230k, was sold at auction a couple weeks back at $760k.

 

[Lamingtons]

Insane! How is it so far from the ESR?

I'm listening to my friend whinge all the time. They wants to buy between less than $300K in the inner suburbs.. refuses to look at Western region, refuses to live on a main road; must be as far away from main roads as possible. Has to have laundry facilities in the apartment and must be at least 2 bedrooms. I have told her to borrow 95% for slightly more than $300K and she said they cannot afford it and at the end of 30 years of the mortgage she's paying more than $100K more in interest. I am trying to block out the noise.

 

[buzzlightyear]

Insane! How is it so far from the ESR?

I'm listening to my friend whinge all the time. They wants to buy between less than $300K in the inner suburbs.. refuses to look at Western region, refuses to live on a main road; must be as far away from main roads as possible. Has to have laundry facilities in the apartment and must be at least 2 bedrooms. I have told her to borrow 95% for slightly more than $300K and she said they cannot afford it and at the end of 30 years of the mortgage she's paying more than $100K more in interest. I am trying to block out the noise.

I'll send you earplugs....

As for the ESR, it has ben discussed before, but I knew that the property was worth $850k definitely, so I just cannot understand how you can honestly have a ESR of $680-$740. So much for the underquoting rules..

 

[jingo]

Melbourne Market Update - 3 December

Yesterday's clearance rate slipped slightly down to 78% as opposed to 81% last week.

According to the Herald Sun, it was only the fourth time this year that the clearance rate dipped below 80%.

Despite the drop in the clearance rate, many outstanding results were achieved. North Melbourne, a market that I have been observing for several years, is continuing to power ahead.

This town house located at 5E/335 Abbotsford Street consists of 3 bedrooms and a double garage. It has been renovated, is well located, and very nicely presented. It sold for $630,000 through Hocking Stuart. Three years ago, it would have been possible to buy this for around $315,000.

http://www.realestate.com.au/cgi-bi...eader=&c=15318851&s=vic&snf=rbs&tm=1196600559



Flats are moving very quickly, and selling for high prices. 15/147 Curzon street has 3 bedrooms, but no off street parking. The complex is located on a busy road. Hocking Stuart auctioned the property on the weekend, and achieved an outstanding result of $466,000. Last year, it would have been possible to buy similar flats for around $280,000.

http://www.realestate.com.au/cgi-bi...eader=&c=15318851&s=vic&snf=rbs&tm=1196600559

Based on the sale price above, this flat below marketed by Simpsons could be a good buy. It includes undercover car parking, and is located very near to the flat above.

http://www.realestate.com.au/cgi-bi...8851&cc=AUSTRALIA&s=vic&snf=rbs&tm=1196600559

Two bedroom flats with car spaces appear to be selling for around the $380,000 mark:

http://www.realestate.com.au/cgi-bi...8851&cc=AUSTRALIA&s=vic&snf=rbs&tm=1196600559

The property below is currently being built. It is part of a development consisting of town houses and apartments named 'The Leveson Apartments'. The development is still incomplete, and I would hazard a guess that an investor is flipping this apartment. The plan looks good, and I wonder how much profit the investor will make from this if they can sell it before it settles!

http://www.realestate.com.au/cgi-bi...8851&cc=AUSTRALIA&s=vic&snf=rbs&tm=1196600559

 

[Lamingtons]

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=41895075&s=vic&tm=1196635048

Guys, what do you think of that? I'm still wondering why the builder doesn't like right angles!

 

[FunFrankston]

to the best of my knowledge, oak park, avondale height are still quite ok.

What about Maribyrnong? I know some people living there and houses in Edgewater are in the high $700K, $800K, some even $900K for land much smaller than in Avondale Heights. Houses in the Waterford Green estate seem to be slightly lower, but still seems high to me. Is there still room to increase?

 

[feihong]

What about Maribyrnong? I know some people living there and houses in Edgewater are in the high $700K, $800K, some even $900K for land much smaller than in Avondale Heights. Houses in the Waterford Green estate seem to be slightly lower, but still seems high to me. Is there still room to increase?

We had discussions about Maribyrnong in this thread, and I was tipping Avondale Height to be the potential performer based on what Maribyrnong has achieved. I am not saying Maribyrnong will not go up higher by all means (in fact I think it will go up a lot more) but the holding cost is becoming rather high, and hence my suggestion in the previous thread

 

[IndexFund]

The real estate market in Australia is bullsh|t and if it goes up any bloody higher, might as well ditch the dream of owning a bloody home...

 

[BayView]

The real estate market in Australia is bullsh|t and if it goes up any bloody higher, might as well ditch the dream of owning a bloody home...

1. where are you looking
2. what is your budget
3. what is your income
4. do you have any money saved
5. are you eligible for the FHOG
6. are you a consumer
7. what is your level of personal debt.
8. what are your expectations of the property you wish to buy

Every one of these questions is going to affect your affordability

 

[alexlee]

The real estate market in Australia is bullsh|t and if it goes up any bloody higher, might as well ditch the dream of owning a bloody home...

Then rent. In any case, you'll find many people on this forum who disagree with you.

Mate, if your recent post was any indication, I'd get some education on property selection first. You're trying to get into this race with your shoe-laces tied together.
Alex