Yarraville 1 Bedroom Apartment $ 380K? Help

[neesh790]

What do you guys think of a brand new apartment priced at $380K in Yarraville on corner of fehon St and Francis Street as an investment property. I'm assuming that the rent will be $350pw based on my research. Strategy: Capital Growth

Few Facts about the property:-
1. 386K Purchase Cost
2. Northly aspects
3. Busy Francis Street
4. 56 sqm
5. Open living floor plan
6. 1 bedroom Only
7. Ready in March 2015
8. Block of 7 apartments
9. 1 car park

Will this grow in value in the next 10years?
Is the potential rental price of 350$ too excessive?
Is the apartment already too expensive?

Thanks heaps!

 

[tobe]

1. Maybe, whats it done in the past? Whats your forecast for the greater western region, or Melbourne as a whole?

2. Check with an RP data report, or call a local estate agent or 3.

3. Seems a bit to me, but then Im from the other side of the yarra.

 

[neesh790]

1. Maybe, whats it done in the past? Whats your forecast for the greater western region, or Melbourne as a whole?
-It seems that Yarraville has already boomed in the West and is now expensive

2. Check with an RP data report, or call a local estate agent or 3.
- Average is 300pw

3. Seems a bit to me, but then Im from the other side of the yarra.

Anybody else from Yarraville or who recently invested there?

 

[S.T]

I was looking at older 2 bedroom apartments in Yarraville around 10 months ago, they were selling for around 330-350k back then.

That's a very busy street, there is also a mini suburb going up there on the old Mill site to be called Yarraville gardens, quite some distance away.

http://www.theage.com.au/victoria/yarraville-block-set-to-become-2b-minisuburb-20140307-34cki.html

I wouldn't be buying new 1 bedroom for that price, but each to their own!

 

[neesh790]

Thanks for the information. This is very interesting!

Is Yarraville still a good suburb to invest or has it already boomed and gone expensive for 1 bedroom units/apartments?

 

[Tom_84]

Hi, I have an investment property in yarraville and know the area quite well. Francis street is a very busy, noisy street.. It's on a trucking route and its the area that most of the new apartment complexes are being developed.
In terms of areas to avoid in yarraville I would suggest Francis street and Hyde street, as they are just too busy and becoming overpopulated with apartments.
In my opinion, $380K could be better spent in the west, try an older complex in surrounding suburbs too such as seddon or kingsville.
All the best

 

[pieman]

If you want cg don't buy that, buy old and rooted and do some work on it yourself

 

[Chris B]

If you want cg don't buy that, buy old and rooted and do some work on it yourself

QUOTE=neesh790;1168288]Anybody else from Yarraville or who recently invested there?[/QUOTE]

I agree with pieman. If you want cg, OTP apartments are generally not the way to go. This doesn't mean it won't go up in value but as the supply of similar apartments is going to increase over time, the demand will need to increase considerably to cause prices to rise significantly.

I have recently researched buying in Yarraville but decided against it. I can tell it would be a nice suburb to live in and has potential for growth but personally I would want something with at least some land or courtyard space.

There are plenty of older 2 bed apartments and units in the western suburbs for less than $350k that have much more potential for growth (especially if you do some reno) and having 2 bedrooms will attract a much wider range of tenants.

 

[bigvman]

If you're buying new then the only way to acheive your goal of capital growth is to buy it.
You are relying on Yarraville "booming" at some point in the next few years.
If you want to know if this is likely then you need to understand the demographics and underlying trends.
I don't know this but I do know that John Lindeman at Understanding Property (google it) does.
I would invest in some area reports from UP before I made such a large investment.
Consider it a cost of doing business or completing your due diligence.

When I buy my next IP I will be spending money to verify my assumptions.

Cheers,

Dwight.

 

[Chris B]

Neesh, if you send me a pm with your email address, I'll send you some property research and a postcode report of Yarraville.