hi
has anyone owned cbd units (melb) and how have they performed?
pitfalls?
graceHey give90,
my fiance and I have a one bedroom apartment in Sydney cbd, we have done very well out of it.
main points Ive found is:
-Get one in a small block (up to 30 units) as it has more scarcity, than a block of 150 apartments where there will always be some for-sale at any one time
-Avoid ground floor apartments due to crime and ugly bars on your windows, Ive found tenants would rather pay a bit more rent and be off the ground floor and feel a bit safer without bars on the windows
-Avoid blocks with gym/pool/concierge and alot of elevators as the strata fees are high due to the maintenance and this will eat into your cash-flow
-if you need LMI they dont like anything with a floor space less than 50 metres
all the best
ten_burner wrote:Hey give90,
my fiance and I have a one bedroom apartment in Sydney cbd, we have done very well out of it.
main points Ive found is:
-Get one in a small block (up to 30 units) as it has more scarcity, than a block of 150 apartments where there will always be some for-sale at any one time
-Avoid ground floor apartments due to crime and ugly bars on your windows, Ive found tenants would rather pay a bit more rent and be off the ground floor and feel a bit safer without bars on the windows
-Avoid blocks with gym/pool/concierge and alot of elevators as the strata fees are high due to the maintenance and this will eat into your cash-flow
-if you need LMI they dont like anything with a floor space less than 50 metres
all the best
In central Sydney( Im looking at inner west) do you feel a car space is important. Im looking at either
1# Flasher 1 bed 1 bath with period character no carpark
2# Less flash 1 bed 1 bath with car spot
3# lesser apartment but 2 bed 1 bath no car spot
4# Bit rough 2 bed 1 bath with carspaceI have found all theses to be around the same rent return and purchase price in my area( Chippendale). Not sure on what direction i should go.I feel the flasher 1 bed would be better as any large increase in units through development would not compare to converted factories in appeal .
Don't underestimate the value of a car space, garage, even better.
I know a lot people say go for small developments, because that means scarcity, but scarcity means does not automatically translate into demand…
One of our best investments is a 2 bedroom 2 bathroom unit in a development called The Emporium in Fortitude Valley (Brisbane) – with indeed a parking space. It has all the usual items of a large development like pool, bbq areas, gym, private cinema etc. and so indeed the body corporate fees are high. But this development as a twist in that the whole ground floor is actually shops, cafes, restaurants, deli's etc. This has made the development an attraction on its own and now people are cueing up to buy or rent and that in trun makes us very happy owners (solid growth and good rent).
It's all supply and demand and you need to look at both sides of that equation…
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