Vogue South Yarra apartment!

Any comment on this Vogue South Yarra apartment?

Anyone think it would be a great OTP investment? or it is wiser to wait till it's completed?
 
To live in or rent out?

It ticks all the wrong boxes as an IP:
Lifts
Pool
Shops (may not be a residential zoning - affect LVR)

Cheers,

The Y-man
 
To rent out

The property prices bracket is around 550 - 600k for 2 bedrooms

Body corporate approx 4k per annum

Judging from the current south yarra apartment, do you think it would be possible to get like $500 per week?

Since the completion is in 2011 (2 years later), I used extra 1-1.5% from the current home loan rate as my repayment calculation and I ended up with approx 1-1.5k repayment (assuming the property is rented out).

what do you reckon?
 
I'm not a big fan of OTP projects for a variety of reasons.
This one, though, does have some good features like the proximity to shopping (you can't get much closer), great location and it looks like a development with some nice features to differentiate it from the "built down to a budget" projects.
My understanding is that it's also fully funded. Banks are requiring projects like these to get 100% pre sales before they will provide ongoing funding to complete the project.
This one is already funded due to the commercial part of the deal being complete and fully leased. So, that does away with one of the uncertainties of OTP investments.
I'm not sure I'd buy one as an IP for the reasons mentioned by Y-Man, but I'd live there, for sure, if I didn't have my heart set on an ocean view.
 
To rent out

The property prices bracket is around 550 - 600k for 2 bedrooms

Body corporate approx 4k per annum

Judging from the current south yarra apartment, do you think it would be possible to get like $500 per week?

Since the completion is in 2011 (2 years later), I used extra 1-1.5% from the current home loan rate as my repayment calculation and I ended up with approx 1-1.5k repayment (assuming the property is rented out).

what do you reckon?

On the current market - yes, you can probably ask for over $500
This is accross the road from the Vogue site.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=22014131&s=vic&tm=1262048111

$4k pa for BC sounds likely, but there'll probably be a sinking fund of $1~$2k per annum on top.

What's the floor space on the 2BR?
Do you get a car park?
Air con?
What type of security system?
What are the inclusions (floor coverings, window furnishings, lights, etc)

Cheers,

The Y-man
 
The one I was looking at is 67 m2. Mostly around 60-64 m2
It comes with a carpark and a 4-8m balcony.

Apartment Finishes:
floors: wool blend carpet
walls/ceilings: low sheen acrylic painted plasterboard
doors: semi glooss painted timber doors with polished chrome door furniture
terrace/balcony: selected natural grey tile

hot water system: centralised gas
air con: individual split air
communication: tv and telephone outlets

no refrigerator/no washing machine

YES to dishwasher/oven/stone bench tops

security: video intercom with remote door access control.

i am offered $1500 to buy extras: tv/fridge or anything

another thing, the apt room location i selected is on river street (dont expect good view)
but it does come with good internal space in comparison with other floor plan (wider vs narrow).
 
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Thanks mate, I feel the same way.

A friend of mine managed to secure a loan about one year early before the completion. I was thinking to do the same see if I have any luck with it. Obviously you would be able to get an estimate evalution from the bank's agent. Which is great! before i actually commited to sign it.
 
A friend of mine managed to secure a loan about one year early before the completion. I was thinking to do the same see if I have any luck with it. Obviously you would be able to get an estimate evalution from the bank's agent. Which is great! before i actually commited to sign it.

The banks will promise everything but not necessarily deliver - as several people on this forum have discovered. Your loan will be subject to a final valuation on completion - so if it doesn't stack up, you need to come up with the difference.

Be prepared to have enough cash to fund 40% of the contract price.

Cheers,

The Y-man
 
Obviously financing would depend on the requirements of the finance, but as a very broad statement, it wouldn't be hard to obtain finance (especially at 80% LVR).

The biggest hassle with off the plan finance though, is that it can sometimes be reviewed. You might get approval and loan offer documents now, but many lenders will reserve the right to review the application after 6 or 12 months.

It's still better to organize finance sooner rather than later, but be mindful not to let your financial situation deteriorate in the meantime.
 
I really appreciate the fast responses. Thank you very much ^^ especially Y-Man. You guys been very helpful! Merry Christmas & Happy New Year to you all.
 
Would it be worth waiting for completion?

I've heard of developers becoming very flexible on price and incentives when there are a couple of properties in a development left to sell. Particularly when they have to shell out the costs of a sales office.
 
Anyone know if floor plans are available online or is it necessary to visit the display unit? I hear that completion date is about two years away. Any info would be appreciated
Thanks
 
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