All Topics / Help Needed! / Off The Plan Purchase in Southbank Melb

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  • Profile photo of trunorthtrunorth
    Member
    @trunorth
    Join Date: 2010
    Post Count: 1
    July 22, 2010 - 2:26 am

    Hi all,

    New here, really glad to have found this site, as there are lot of great information shared by many experienced investors!

    I am facing a bit of dilemma right now for my first IP. Currently looking at purchasing an OTP 1 bed + Study Apartment (approx 58m2 all up) plus carpark in Southbank, this is the new development on Queensbridge St, across from Crown. Price is around 550K, 10% deposit now, due for completion in 2014, body corp around $3600 per yr.

    Given its 4 years, I am unsure whether I would be better off buying a house/unit with land now in the outer suburbs for around the same price, or go with this apartment. The location is very good with view of the yarra and city, and there probably wont be any development in the future with similar location. A higher rental yield compared to houses, but in terms of appreciation in value, I am really unsure, there already are many apartments in the area, the only advantage I can see is the location, and the "prestige" appeal of the building. 

    At the end of the day, its about creating wealth, so I guess the question is which will be better as an investment, OTP apartment at a premium location VS a house purchase in the outer suburbs now.

    Can anyone share their thoughts on this?

    Thank you all!

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    July 22, 2010 - 11:59 pm

    Apartments in Melbourne don't have a history of appreciating as quickly as houses in the suburbs. Personally I think you would be better to spread your risk and get two houses in the suburbs, rather than one box in Southbank.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of PC_MelbournePC_Melbourne
    Member
    @pc_melbourne
    Join Date: 2010
    Post Count: 43
    July 23, 2010 - 3:05 am

    For $550K you could probably still find 3bed house townhouse in the western belt of Melbourne
    Newport –> Spotswood –> Yarraville –> Brooklyn –>Seddon

    Houses, Land, Good appreciation, low rental vacancies.

    We are all for apartments, but for $500+ would be looking at either an old house on big land or new townhouse on smaller land.

    Just an opinion

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