A one bedroom unit in Altona North Melbourne going for 170-190k…..the areas median price is 314k up 39% past 12 months and rental yeild is at 4.6%….is this a good investment???
Hi,
You should consider things such as the body corp, rates and any other outgoings that it'll cost you. Should also see if you could make any improvements to the unit to improve the rental yeild as it doesn't seem that high. I'm not sure about the area but what you've said it sounds good. Are there many job opportunities in the area etc.
Luke
Research – is the median price for 1 bed units, 2 bedders or non-descript (ie all units or does it include houses)?
Is the median price skewed by the sale of a large number of newly constructed units?
What is the sample size?
What is the state of the unit – ie in desperate need of renovation/as new condition etc? (ie how much do you need to spend to bring it up to a comparable condition to the median priced unit)?
What factors are causing the price of this unit to be around 60% of the median price (small rooms, studo rather than 1 bedroom, shared laundry, no parking, main road location, reluctant sale, major body corporate levies due)?In pointing out the negatives, there must be many more positives for the property ie well located, shortage of supply, high transient population etc.
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