Unit/Flat in Caulfield
- Thread starter propMelb
- Start date
Congratulations on your decision
OK, the median unit price in Caulfield is $400K or so for a unit, but that's just the median - there are units for sale around $300K
Will there be a better time? Prices have taken a bit of a hit with the GFC and local economy. Long term view is always the way to look at RE. IR's are the lowest in 60 years or whatever and rents are going up. It costs virtually nothing out-of-your-own-pocket to own. What more do you want? a set of steak knives
What is your research telling you?
Here's a start:
http://www.myrp.com.au/report_VIC_Caulfield_3162.html
http://www.investsmart.com.au/property/profile_suburb.asp?Postcode=3162&Suburb=Caulfield&State=VIC
http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=3162&t=1
As any REA will tell you, you'll never lose by buying in a Jewish area - they know how to look after an area's value! (I hope this doesn't trigger any religious rules on the forum?)
Having said that, I'd personally probably buy a unit a little further west or north west, say Windsor, Prahran, St Kilda East, etc.
Having said that, I'd personally probably buy a unit a little further west or north west, say Windsor, Prahran, St Kilda East, etc.
Sorry off topic slightly... I don't really know St Kilda that well but it seems to be in the news a fair bit (or I'm just noticing it). A stabbing at the McDonalds was the latest. Also some of the friends we met up with for a New Years Eve get together were decidely not looking forward to going home to St Kilda. Apparently NYE is really bad there. (Not just a few firecrackers)
Now I know bad stuff happens everywhere
Dunno, I have no interest in St Kilda and I live miles away but thought I'd mention it.
Now I know bad stuff happens everywhere
Dunno, I have no interest in St Kilda and I live miles away but thought I'd mention it.
Caulfield's a funny area with no real centre.
You've got small shops along Glenhuntly Rd in the south and the small Caulfield Plaza in the north. The southern bit has a slow tram, strip shops (no big supermarkets though) and is nice enough, but less handy.
You should have no problems getting tenants, especially in the part nearest the station where there's good access to several unis. Shopping is a bit limited - Carnegie and even Glenhuntly has a bigger range.
$300k is unlikely to get you anything other than a flat in this area.
You might be able to get a 2br flat in Carnegie (next suburb to Caulfield with excellent shopping strip) or Glenhuntly (also adjoining Caulfield with a mediocre shopping strip but with a tram).
Carnegie has a lot of students from Asia; Glenhuntly is more Indian. Both are also handy for city workers, but Glenhuntly has a far inferior train service to Carnegie (poor frequency and inability to board sometimes) so avoid it if commuters are your market.
If you get a villa for that amount in either suburb you're doing really well, though note that the southern half of Carnegie is too far from transport.
Otherwise $300k will get you a good 1br flat. It will probably be 1960s, but possibly renovated. For that price you'd hope for a reasonable amount of space, a good balcony, internal laundry and bathroom that's accessible without going via the bedroom (all the cheaper flats in Carnegie/Caulfield/Glenhuntly have that problem).
If you're happy to pay $300k for a 1br though, Elsternwick, Elwood, Prahran might also be within budget, and are all highly regarded inner city suburbs. Elwood has a little shopping vilalge and is near the bay, but I've found its beach hot and less pleasant than others further down the bay.
One positive for Caulfield (and directly surrounding areas) is that it is a bit of a transport hub. Sir Rod Eddington's transport blueprint featured a tunnel from Caulfield to Footscray. I've no idea if that will ever happen, but being the hub for trains on the Pakenham/Cranbourne/Frankston lines, Caulfield is likely to feature in anyone transport infrastructure development plans if they ever eventuate. The presence of Monash uni also means strong demand for rental property. There are new shopping developments on Dandenong Rd near the corner of Koornang and Chadstone is only 5-10 minutes from the area by car.
Caulfield will be a solid cap gain peformer in the long term, as usual.
Don't know that you'll get much for $300k? Just did a realestate.com.au search and found only 1 bedders and studios under $300k. Anything else near that in a 2 bedder was a clunker.
As for the near future, wouldn't like to make a prediction. Anything in prime locations will do well, but they never go for a bargain.
And, the rental yields there are traditionally cr@p by my standards (must be in line with interest rates at least).
All in the same boat - strong historic cap gain, but very ordinary rental yields generally.
Brace yourself for a neg cashflow.
As others have stated, these are all good areas. IMO, however, given your budget, St Kilda East would be my pick. I generally have a bias for property that is closer to the CBD, so hence my pick.
I would have also mentioned Elwood, but not sure if your budget gives you much. Alternatively, for those prices St Kilda West you would only be able to get a studio.
Whilst there are many factors to consider when selecting, I would make sure the property you ultimately choose is close walking distance to either train/tram. IMO critical.
I would have also mentioned Elwood, but not sure if your budget gives you much. Alternatively, for those prices St Kilda West you would only be able to get a studio.
Whilst there are many factors to consider when selecting, I would make sure the property you ultimately choose is close walking distance to either train/tram. IMO critical.
Agreed about the terrible yields.
An inner area might give more options regarding letting furnishd for higher rent, but you might get more transient tenants and higher management costs.
The following might be OK
St Kilda East $200k http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007596574
St Kilda East $239k http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007592923
Carnegie http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007523319
An inner area might give more options regarding letting furnishd for higher rent, but you might get more transient tenants and higher management costs.
The following might be OK
St Kilda East $200k http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007596574
St Kilda East $239k http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007592923
Carnegie http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007523319
Hi Bayview
Agree with you that over time prime locations do well, but disagree that you can't find a bargain. If you search hard enough, have your finances lined up and know your values bargains crop up from time to time, you just have to jump on them.
Bought the Brighton property linked below in Nov. 08, took possession in late Jan. complete renow to be done and will rent for a 5- 5.2% yield, in line with my interest rates.
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=33069735&s=vic&tm=1226006694
Have done the same thing with houses in Middle Park and Albert Park in the
mid 90's.
Buy @ $145000 + $20000 renow. Interest @ 6.63% = $10940, rent $11440
Buy @ $115000 + $25000 renow. Interest @ 6.63% = $9280, rent $10920
Both CF+
Yields on prime locations are not always crap and above is only residential, better rewards can be obtained on comm/ind/office at different times.
Cheers
Pete
