Thoughts?

Hi all, new to the game and would like some advice on our first IP.

We have narrowed it down to two properties but are split as to which one to go for. They are both 1 bedroom apartments, roughly same size (58sqm), similar rental returns, both private sales. Both are run down need kitchen, bathroom reno'd which is what we want.

Apartment 1:
Location: St Kilda
outgoings: ~$2.5k
pro's: $25-40k cheaper, 1st floor, timber floors, feel ever so slightly more spacious
Con's: No carpark (but free st permits available), longer walk/short drive to shops/supermarket

Apartment 2:
Location: Prahran
outgoing: ~$3K
Pro's: best street in Prahran, 1 carpark, short walking distance to supermarket/shops/public transport/hospitals
Con's: ground floor (less security, foot traffic past windows), no courtyard, approx $25-40k extra, carpet.

Would love some ideas/thoughts as we are really torn as to what is the right/better choice
 
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Hmmm, my thoughts if yields are same - Prahan because of the car park, walking distance to everything, great street, ground floor easier to reno? If it needs a reno, people have been living in it despite the lack of courtyard/ foot traffic. Think of of who your tenant will be and what they want/ will pay for.
Cheers, nat
 
No cost price? Negatively geared?
I personally wouldn't touch 1 bedroom apartments, but maybe its different in Sydney.
 
Hi all, new to the game and would like some advice on our first IP.

We have narrowed it down to two properties but are split as to which one to go for. They are both 1 bedroom apartments, roughly same size (58sqm), similar rental returns, both private sales. Both are run down need kitchen, bathroom reno'd which is what we want.

Apartment 1:
Location: St Kilda
outgoings: ~$2.5k
pro's: $25-40k cheaper, 1st floor, timber floors, feel ever so slightly more spacious
Con's: No carpark (but free st permits available), longer walk/short drive to shops/supermarket

Apartment 2:
Location: Prahran
outgoing: ~$3K
Pro's: best street in Prahran, 1 carpark, short walking distance to supermarket/shops/public transport/hospitals
Con's: ground floor (less security, foot traffic past windows), no courtyard, approx $25-40k extra, carpet.

Would love some ideas/thoughts as we are really torn as to what is the right/better choice

If I had to choose, I would take the one in Prahran but only because of the car park. I think living in St Kilda not close to shops with no car park would be painful. I house sat just off Grey St and finding a car park was always a lottery.

Re: Prahran, I would only be put off by the ground floor location if it's on a main/busy road but even then it can improved with double glazing and security features (if necessary). My main issue with both of these is the outgoings of more than $50 per week. This takes a big chunk of your rental income and rates & owner's corp fees can easily increase.

What are your reasons for focusing on these two properties? How big are the complexes? I can think of better ways to spend your money.
 
If I had to choose, I would take the one in Prahran but only because of the car park. I think living in St Kilda not close to shops with no car park would be painful. I house sat just off Grey St and finding a car park was always a lottery.

Re: Prahran, I would only be put off by the ground floor location if it's on a main/busy road but even then it can improved with double glazing and security features (if necessary). My main issue with both of these is the outgoings of more than $50 per week. This takes a big chunk of your rental income and rates & owner's corp fees can easily increase.

What are your reasons for focusing on these two properties? How big are the complexes? I can think of better ways to spend your money.


I Chris, thanks for the reply.

Yes, ground floor is the thing putting us off the most. The st is a premier st and is quite quiet.

The Prahran building is a 1950's build with only 10 apartments on the block. Personally, although I like the area I would rather invest in house and land perhaps in Brisbane or anywhere else that will produce best CG but the wifey is set on these areas and is not open to the idea of investing elsewhere, especially interstate.

Any tips on how I could get her to take the blinkers off? If only I could plant a seed like Inception lol.
 
If I had to choose, I would take the one in Prahran but only because of the car park. I think living in St Kilda not close to shops with no car park would be painful. I house sat just off Grey St and finding a car park was always a lottery.
+1.

Folks want to be near stuff..walking distance to things is a big plus.

No car park decreases that attraction for the St.Kilda one.

The Prahran building is a 1950's build with only 10 apartments on the block. Personally, although I like the area I would rather invest in house and land perhaps in Brisbane or anywhere else that will produce best CG but the wifey is set on these areas and is not open to the idea of investing elsewhere, especially interstate.
Go with that; it's all good - you are going to be IP owners. :cool:

You can still do the Brissy house and land later on.
 
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