Hi all,
I am considering investing in a property in the Sydney city area for around $350k-$400k. Looking for a 1 unit apartment that is relatively new, and in good location.
I purchased a property in conjunction with a partner back in 2005 in Kellyville which has appreciated slightly, and I will keep this long-term, however I wanted to get some thoughts around looking to invest in the city.
Any thought or comments on advantages or disadvantages of investing in a 1 unit aparemtnet the city in areas such as Sussex St, George St, or even surrounding areas such as Pyrmont?
How do you think the market will go in the next few years, and is it a good time to purchase now?
Cheers
AjayHi all – another quick thing.
My previous property purchase was DHA – I like the fact that it is a totally "hands off" investment although the management fees are high.
By investing in a "regular" (non-DHA) property, is there some way I can make the investment still "hands off" by engaging someone to look after ongoing maintenance, repairs, locking in tenants etc? I want to avoid involvement in checking on the property or being involved in servicing etc. Since I invested in my previous DHA property in 2005, the most I have done is simply driven past the property a few times.
Look forward to hearing you comments on this non-DHA situation.
Regards,
AjayHi
I have a 2 bedder in the Sydney CBD ( Summit apartment on George Street) which I purchased late last year.
Purchased for $425K and identical apartments in the same building has since been sold for around the $460-480K mark depending on the floor and layout. Based on records, the original owner purchased it in 2002 for $350K.
The only thing I can say is right now (and also before), rental demand in the Sydney CBD is quite high. There are many people wanting to rent because there are always going to be international students, working professionals and so on. On the downside, CBD apartments usually have lower capital gains and have associated costs involved such as strata levies etc.
My apartment is nearly positively geared.
The problem with units in general is the high strata fees. CBD units pose additional problems in restrictions on finance. This can limit the number of potential buyers and hurt your borrowing capacity if you have low equity.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:The problem with units in general is the high strata fees. CBD units pose additional problems in restrictions on finance. This can limit the number of potential buyers and hurt your borrowing capacity if you have low equity.Hi Terry – any particular reason banks would apply restrictions in regards to financing a load specifically for CBD units?
Best regards,
AjayBesides the high strata fees associated with Sydney CBD apartments, is the posibility of having MANY uni students as residing in your apartment. Sydney CBD is a favourite location for Uni students due to its proximity to everything.
I'd hate to stereo-type uni students but alot of real estate agents I have spoken to, admit that some investment apartments in Sydney CBD have been leased to 2 people (on the signed lease) but actualy 5-10 students reside in the 2 bedroom apartment.
Hate to think what the repairs/maintenance bills will look like on such properties.
So if you have to buy inner CBD, be careful of who you sign up as tenants
Good point – thanks Kevin.
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