TRIO apartments in Camperdown Sydney

[awsydney]

Can someone please advise whether a 1 bedder in the above development is a good investment? My wife has been bugging me to get it for months now. I keep saying we need to take the emotion out of it. She fell in love with the display unit there, it's around 80sqm. It's the east facing ones which have the beautiful city skyline view and going for around mid $500k's. Personally I think it's kinda overpriced. I need some real critical opinion and views. Slap me out of it or discourage me. Please help!!

 

[The Y-man]

Can someone please advise whether a 1 bedder in the above development is a good investment?

Kind of like asking if a Holden Commodore is good..... whole heap of thing we need to know about your objectives, risk profile etc etc etc before we can really make a meaningful comment....

Just on the info you've given, can the view be built out?
Why do you think it is overpriced?
How long are you intending to hold for?
Are you going to live in it?

Cheers,

The Y-man

 

[awsydney]

Hi Y-man

I think it's overpriced at almost $7k per sqm although location wise it is close to the CBD. At these prices, I would think most would be owner occupiers. I was merely checking to see if anybody has any particular views on the 1 bedders at this point in time, especially those who have bought into it. I dont intend to live in it so as an investment unit, I think there are better yield options.

 

[Ridin-High]

this is my opinion only.

i haven't checked the development but i presume their is a whole stack of units 100+?
well for the developement company to flog them i presume they have spent big on advertising? Do you have a advertising budget of 1million when u wanna sell? when you wanna resell whats going to make it different to the other 99 units in the complex.

IMO i think CG would be small for a long time, holding costs will be high. In brief i believe their is better places to park your dosh then the development ur wife is interested in.

Regs,

Rh

 

[awsydney]

this is my opinion only.

i haven't checked the development but i presume their is a whole stack of units 100+?
well for the developement company to flog them i presume they have spent big on advertising? Do you have a advertising budget of 1million when u wanna sell? when you wanna resell whats going to make it different to the other 99 units in the complex.

IMO i think CG would be small for a long time, holding costs will be high. In brief i believe their is better places to park your dosh then the development ur wife is interested in.

Regs,

Rh

Yes they are developed by the Fraser Property Group, with high profile architects etc and they would have a huge budget from the advertising they are doing, glossy magazines etc. I'm not so concerned about selling later on as I think there will be a market for these apartments, especially those in Sydney who are willing to spend a little more as owner occupier. However, I share your exact sentiments that there are better options ie better yield with smaller capital outlay and hence lower risk. But try explaining that to a woman who is already sold on the interior decor, views, beautiful bathroom fittings etc etc. Thanks Ridin-High for your input, merely reinforces my view the development is better as owner occupier rather than to invest.

This is their website:

http://www.triosydney.com.au/trio/default.asp?cID=2

 

[Propertunity]

There is nothing wrong with Camperdown as a place to invest.

Brand new in a high rise CONS:
1. Little CG for the first few years as it goes to the developer's margin
2. No uniqueness. What can you do to make your unit more desirable to tenants if there is a time where rental demand is less than it is today?....probably nothing except drop the asking rent
3. If econominc circumstances change, as they do, and a number of fellow owners have to sell at fire-sale prices to get out, what does that do to the value of your unit?.......comparable sales in the same building are how valuers value accurately
4. Strata levies are higher in buildings with lifts

Add to that:
1. Can the views be built out?
2. What is the current (& likely future) supply & demand?

You have rightly identified that

there are better options ie better yield with smaller capital outlay and hence lower risk.

But try explaining that to a woman who is already sold on the interior decor, views, beautiful bathroom fittings etc etc.

There is no room for this kind of emotion in investing. Suggest that you stop taking this woman to look at property for investment purposes or hire an unemotional professional to purchase for you.

 

[awsydney]

Hi propertunity

Thanks for your input.The views are unlikely to be built up but who knows. If I were to buy at TRIO I would want to live in it myself but I dont like the inner west living. So end of the road here. As wives can be emotional I take her along just so she can put in her 2 cents worth (its important!) but all my previous IPs are made based on pure $ and cents.

 

[The Y-man]

As wives can be emotional I take her along just so she can put in her 2 cents worth (its important!) but all my previous IPs are made based on pure $ and cents.

Yes but which is greater of two woes - buying a dud apartment or upset wife...

Cheers,

The Y-man

 

[auror]

I know the apartments you're talking about... and sorry, I do think they're massively overpriced. For $460-$490k you can still get great 2 br apartments in camperdown, reasonably new. I would never pay $500k+ for a 1 br apartment, no matter how nice it was, but that's just me!

 

[awsydney]

Good one Y-man!

When I was single, investing used to be very straight forward and easy. Since I got married, I used this strategy:

1. Choose a few potential IPs, visit the sites myself and I do all the research first on which is a good investment. I do not tell my wife at all about my research and results.

2. We go check out all the IPs together as though it's our first time.

3. She puts in her 2 cents. This is important as you need to give her a chance to voice, emotional or not and I have learnt to "play along".

4. If she chooses one which the numbers / elements don't add up, I may play along at first or I put my foot down straight away depending on the situation.

5. If she chooses one which makes $ and sense, then we have consensus.

Either way, the $ and sense will prevail. Until today, she still brags about a couple of IPs which we bought and she thinks that it's her good investment judgment because of the aesthetics and design of the place or close to the beach, whatever the case may be!

I have also learnt that a woman balances the softer and warmer side of an IP which a man sometimes cannot see. This can be potent complement to the process as long as the key principles of investing are followed. Like it or not, there are still huge number of couples where the wife's decision to buy is a big factor, and women see the same things! Developers and sellers also know this and dress up the property according to their taste sometimes. I try to look beyond this and take the bare walls as they are.

I say do the work behind the scenes and let her have the glory.

 

[awsydney]

Yup Auror, I share the exact same sentiments. Their website in itself already looks expensive. Thanks for your input!

 

[JustRent]

Hi awsydney,

We do not manage any properties in that building as such, but we are located in Annandale down the road and the rental demand in the area certainly is strong. Vacancy rates for units are very low with access to plenty of cafes and eateries in the area as well as the close proximity to the city.

Good luck with your hunting.

 

[awsydney]

Hi JustRent

Thanks for your note. I'm finding rental demand for the inner west a little hard to read. On the one hand, I hear and read about the continued influx of people wanting to live closer to the CBD and the inner west suburbs are a favoured choice, hence my initial consideration about Camperdown. On the other hand, I also hear about people wanting to move away from the congestion since the inner west is probably one of the most populated areas in Australia.

In any case, I bought a brand new 2 bedder in Erskineville which is due to complete before Christmas. I'm really unsure whether tenant demand in that suburb has changed. I read a McGrath report a few months ago that it was strong. Will have to wait and see.