My sister has 2 daughters travelling to Uni in Melbourne every day by train.
We live in the country so the travel time one way is 2 1/4 hours.
She’s looking at a 2 bedroom unit in Docklands as she likes the area and feels safer there than the City.
She’s looking at spending around the $400k mark but it must have a car space for when she visits.
Down the track, she and her husband would like to use it as a weekender or maybe rent out.
I know there is a glut of building approvals there but the cost of travel and weariness the girls get isn’t good for their study.
As such she needs to buy fairly soon, not so much as an investment now but maybe later
Has anyone any ideas on an approach for her?Cheers
Instead of buying a dud investment in an area with ongoing supply issues which will plague any values – why not just rent there for the girls? It’ll work out cheaper and not require her to invest in a subpar area.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
True Corey
She’s looking at that path but in the future they’re going to want a “pad” thereSo the question would be when should they buy there?
I’d reckon the supply issues will be around for a few years, so go now or wait 5 years?Hi Duane,
With the well-publicised “potential glut” of apartments maybe unsettling some owners, there might be some bargains to be had if you bide your time. Perhaps consider looking out for bargains even as the girls rent in the area. They will get to know more about “Will they like to live there into the future” and may even get to hear of bargains coming up within the block as they live there.Keep in mind that the buyer has the advantage in these situations….. and also consider this :-
Apartment buildings in capital cities are often sold to overseas investors, with their ownership often being 50% or more of all such sales !! Now if, for some reason, an overseas investor (or several of them) must sell, they CANNOT sell to another overseas investor. Thus they can ONLY sell to the domestic market (refer FIRB rules re overseas investors ONLY being able to purchase NEW property). If an overseas event has a number of such sales, it creates a glut on the domestic market. The supply/demand curve gets flattened in favour of a buyer.
Maybe keep your powder dry, get your finances in order, keep an eye on second-hand sales and the prices they fetch, and be ready to jump on what seems to be a really good SECOND-HAND deal.
Benny
You must be logged in to reply to this topic. If you don't have an account, you can register here.
