Just wondered if it would be prudent to be looking at inner city appartments in Melbourne. There had been talk that there was an over supply that effected prices in 2004. Could there be some good buys now ? Still green John.
John Groeneveld
No, I wouldn’t. A lot of positive news about the property market is made by people with vested interests. Keep your hard earned in your back pocket, there are plenty of better ways to blow your money![wink]
Hi John,
I agree that there is a lot of hype to buy or stay away.
It is up to you after you do some research based on FACT not hearsay.
I am currently helping a friend sell some properties in Southbank area in Melb.
These have gone up in value since contract.Loan Lady
My bank won’t loan money for inner-city apartments. They say there is too much fluctuation in value. Personally, I think you can’t go wrong investing in the established inner-city suburbs of Richmond and South Yarra.
My online investing diary: http://retireyoungandwealthy.blogspot.com/
You can get finance for inner city areas – there are a few things that need to be addressed.
Loan Lady
Sounds like g7 has the right advise…..at least it appears he does not harbour a vested interest.
John,
Currently own a 2br apartment IP in South Melbourne (bordering Southbank) and rent a 1br apartment in the same area.
From a prospective purchaser, I think you could do better elsewhere for the moment. Although most media & other investors lump CBD, Docklands, Southbank & St Kilda Rd as one homogeneous group. Which is definitely incorrect. At the same time, the amount of stock available (even though it is still early in the year) is pretty light on from a quality point of view.
From a rental propsective, there is definitely upwards pressure & know from my personal experience in both renting and renting out my property that despite what some commentary about inner city (Docklands & CBD aside), there is good rental demand. (Again this time of year is the busiest for rentals).
IMO, at least wait for another 12 months and review the market then.
James
John,
You have mail!!! [biggrin]
As per my PM to you…..BE VERY WARY of inner city apartments, if for no other reason but because of the oversupply of same. Furthermore, (from my discussions with corporate banking execs) banks don’t like to (not that they won’t) lend money for anything less than 50m2. Mind you with enough “sweet talking” you may get around this obstacle!!! [winking] (joking)
Cheers,
Jo
John,
Was wondering if you have read the latest API mag yet?? It has an interesting article on apartments in Sydney. It is a fairly positive article but not overly so. It might be worth reading it as Melb may follow suit.
Mateka,
Just be careful about what you take in from the API magazine. Most articles are written by people who make their money from the property industry.Don’t even think about it. There are very few renters to many new apartments. As one who lives in Melbourne and has looked at inner city apartments but invested in suburban Melb instead (neg gear), I would recommend you keep right away from inner city apartments. I am also moving away from neg gearing to pos gear.
Regards
Tiger
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