Hi all,
I am new to this forum, but read most threads and i think it’s great.I live in London, and am going to a seminar on Friday next, they are offereing the first release of apartments ‘off the plan’ in Market Square Melbourne. I dont know prices yet or dates for completion – but i wonder if you could offer advice on how the IP market is doing there? I have never been to Australia but my parents in Zimbabwe are moving to Perth in September and i want to start investing in Auzz but wondering what area to get into for capital growth.
Basically i have left my job and bought 2 ‘OTPlan’ apartments in Spain which have seen excellent Capital growth and i plan to sell those soon before completion and take the profit to invest in Auzz. I am also getting about £18000 equity out of my residential flat in London which i can use.
Any ideas on weather the Melbourne OTP apartments might be a good one? Or perhaps Perth? Can you sell ‘OTPlan’ contracts on before completion as i am doing in Spain?Many thanks in advance
Bruce
Hi Bruce,
Do you mean Market St, Melbourne?
Serviced apartments?Regards,
Melbourne.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Hi, and thanks for your reply,
All i know so far is that they are called Market square condos, Melbourne Australia. Near the CBD i think. I will find out on Friday all the details and will post again to get some opinions.
Is there still good capital growth round the CBD area in Melbourne for 2 bed, new apartments? The reason i ask is that i have been getting about 30% growth on ‘off plan’ in Spain, but want to move to Australia and wondered if i could get that sort of growth there. Can anyone who has bought ‘off the plan’ in Melbourne recently shed any light for me?
Thanks again for your reply
Bruce
Bruce
If this is an inner city apartment then you should take note that there is currently what people are considering an over supply. I think the property you are talking about is Market St.
I recommend you access the age online each Saturday and check out real estate prices, also the reiv site will give you valuable info on vacancy rates for rentals and expected growth figures etc.
I strongly suggest you have a local represent you as a buyers advocate, yes you will pay a fee but better than ending up with a lemon of an investment.
G’day Bruce,
I have to agree with Mmmay1, in that there is currently a feel and a reality of “oversupply” of brand new inner city CBD (including the Docklands area) apartments here in Melbourne. I would recommend that while you do not totally write off the idea, it would well be worth proceeding with extreme caution before making a final decision.
I guess it also depends on what your goals are – if you are purely after capital gains/growth, then you might want to check out some inner suburbs such as Richmond, Carlton, St Kilda, Clifton Hill, rather than the CBD ( and most notably the new Docklands developments) itself. Please note that these and most inner suburbs while showing excellent capital growth, will be very negative from a cash flow point of view.
Some hand links that you might like to explore :
( Sooshie – if you read this, please feel free to add them to your “list” if they aren’t already there )For Aution results in Melbourne (and around Australia)
http://www.domain.com.au/UserServices/searchAPM.aspx?mode=auctFor median prices, and recent growth rates
http://www.homepriceguide.com.au/snapshot/price/index.cfm?action=viewFor “where on earth is that ? “
http://www.whereis.com.auI hope this helps,
BDM
Hi,
Hmmm – I see red warning lights flashing here.
A common trick is to try and sell overpriced property to off-shore investors who don’t know he market.
For you, used to London prices and with a favourable pound:dollar exchange rate, the prices might seem cheap.
However, that is not to suggest that you will be paying too much for the property!
I wonder, who do you think is paying for the seminar, flights to London etc? It will be the overseas buyer.
If you decide to go ahead, then I would suggest that you have an Austrlian do the negotiating for you here in Oz. Perhaps consider using an independent buyer’s advocate to act on your behalf.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Bruces,
Should you need a buyers advocate in Perth, please let me know.
We would be more than happy to help.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auEvery time I read the financial review, red warning lights everywhere on property boom and bust oversupply and rising rental vacancies, especially city apartments and even serviced apartments.
There are a huge number of hotel beds in melb,, be especially careful of rental guarantees.
There is also warning of this spreading to suburbs around Melbourne.
I’ve heard of I flat being vacant 3 months in Elwood, and 4 weeks so far in St Kilda (friend at work).
What happens in other countries may not be mirrored here. In Spain, I believe apartment living is much more prevalent and the population larger.
So research it carefully.It has been reported that due to the oversupply of inner city apartments many new projects not started have been put on hold until demand catches up.
Therfore once demand does catch up these projects will begin again thus ensuring that real capital gain in city apartments will be years away.If you’re after growth, you’d be better off investing in an inner city house as BDM suggests. You can get a decent period house for about AUD$500k in some of these areas that will show excellent growth if your view is medium to long term.
Remember that land appreciates and buildings depreciate.It’s very highly unlikely that you’ll achieve any strong gains buying units OTP and then reselling as you’ve done in Spain. There is a property boom going on in Spain at the moment and i’ve heard prices in Barcelona have gone crazy in the past 2 years. Don’t expect to repeat this experience down under.
As a foreigner you may also be subject to the FIRB which may limit your choices.
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