Hi all, I need some fairly urgent advice. I have been looking for quite a while for a 2 bdrm apartment (IP) in inner brisbane. Found one yesterday in Kelvin Grove that seems to stack up as far as the numbers are concerend, so I put a tentative offer on it which was promply accepted. I didn't sleep all last night wondering if I've done the right thing (no contract has been signed yet) and if I should withdraw the offer.
The facts: Price $327K for 74 m2 2bdrm, 1 bathroom, 1 car space. Renting at $330 pw (will be as of Feb), Body Corp $2000, Rates $1300, management fees 7.5%. Comes with white goods. Sounds ok.
Negatives (please tell me if these arent really as negative as I think they are):
The building although only 3 yrs old looks a bit shabby.
It has no nice entrance, the main way to come in is through the basement car park where there is a tiny dirty pool that nobody in their right mind would use.
It's on a busy road (Kelvin Grove Road) and although all the units face back off the road, the balcony is kind of small and dark and you can't sit out there if the aircon is on inside coz you get blasted by hot air from the split system thingy.
The 2nd bdrm has no built ins and is really small.
It;s located on the fringe of the new QUT (university) urban village. Although it's not part if it, it is pretty much solely tenanted by students and as far as I can see, they are the only ones who would ever really live there for it's proximity to the campus rather than being in a nice place to live. There are also loads of new campus apartment buildings going up as part of the urban village. I don't know if this is a good thing or bad.
Would I be wrong in thinking that from an eventual resale point of view that it would only really attract a limited market, and not really owner occupiers due to the above factors, and therefore not grow as well?
Upon searching pdslive, the last guy bought it new in 04 for $260K. Would you have expected a bit more than that for other properties near the city?
As you can see, Im a bit confused as to what to do and need to decide quite fast. I don't want to drag it on for the poor owner. Any advice will be much appreciated.
CheersHi Perry
My immediate question will be –
what's happening to the Bodycorp fees that the owners are paying – as the complex is not being maintained very well??
Ask that question to the agent..My personal opinion is that – this investment will be considered as a student accom – from an investors point of view – and hence maybe the price that you have aggreed upon is a bit high.
Also, as you correctly said, propety bought in 2004 should have gone up a lot more – considering how close it is to Bris CBD.
Have you done an analysis (such as PIA) on this deal?
Well the above is my 2c worth!
Good luck!
Ananda
Dream Catcher Finance
1300 424 453thanks for the 2c worth. I retracted the offer before anything was signed. The search will continue…
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