Hi Guys, Any experience with Melbourne CBD properties? I have seen a few 1-2 bdrom appartments within 200K, with 5-10 yrs leased option. Well this seems good as they are already leased so sounds like a no worries IP
, and affordable too..Anybody knows their chances of appreciation in value?
To add in more, if i buy a appt there as IP, the rent = mortgage…. i only have to pay for other charges like body corp etc….. do u think its a wise option yo invest? I am yet to lay my foot in the real estate market.
ta
I’m no expert on inner city appartments, but from what I’ve heard, they aren’t a good investment. I’d work out all the numbers and do your due diligence prior so you know exactly what you are getting yourself into.
As Steve has said in the past… when demand is greater than supply, prices go up… when supply is greater than demand, prices go down. If you ask me, the later applies to Melbourne at the moment. I’d read through Steve’s old newsletters (he has mentioned inner city apartments many times) and also do a search on the forums for “inner city appartments”. I’m sure you’ll find lots of info (both pros and cons).
Regards,
OziThanx Ozi!!! Shall begin my search straighaway!!! Tho the prices really look tempting to me….. its only a matter a appreciation that what am a bit worried….
be very careful. if something sounds too good to be true it usually is. you need to ask yourself why they are guaranteeing rentals. if it was a great investment they would not have to do this. you often find that there are some tricks and unless you read the fine print you could find yourself in deep s…t..
also you need to be sure the entire building and managent are upto scratch. you can end up sepending heaps on body corporate, then repairs and maintenance after a few years if the job has been done on the cheap.
this has been the critisism of some developments that the developers go in there, build using cheap materials, and are long gone when repairs and maintenance problems start to appear.
as an investment they are poor in terms of being able to differentiate your product, and therefore your ability to sell quickly. for example – if you wanna sell what makes your apartment more attractive than the other 30 also on sale in the same complex. nothing except price…
i have no doubt that in 20 years time having an apartment in the city with views will be a great asset. it is just about everywhere in the world….but you need to have a longer term perspective
best of luck
ditto aussierogue
brahms
mortgage broker
[email protected]Most of these apartments being sold under 200k with long leases are student accomodation in huge blocks that are essentialy managed investments. Could be positive cash flow but not enough to make it worthwhile and cap growth may be non existant.Not what I’d call an investment for a fully geared aproach
MJK
Guys…. Thanx a lot for all your support. I’ll definitely have a look and will let you all know of my experience.
Hi SMTM,
You will also need to check the bank’s willingness to lend 80% (or higher with LMI). There are issues with specialised lending, small rooms/units and in some cases inner city serviced apartments.
It is critical you check this aspect of the deal out too. Otherwise you could end up with something with banks lending at limited LVR levels which makes your property less attractive to subsequent investors.
Serviced apartments can have unusual costs and this side of the equation needs to be also considered.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
, and affordable too..
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