Hi guys,
I am looking for a positive cash flow investment, I have no debt and have 180K to spend. I have been considering buying and doing cosmetic renovations but now realise I don’t have the time required to execute this successfully. I have been thinking of buying apartments in the Melbourne CBD and surrounding suburbs. There are plenty of cheap 1-2 bedroom apartments with high rental return. I don’t really know much about investing in city apartments and very hesitant as its seems “to good to be true”. I mean the apartments i’ve seen are selling for around 180k to 200k with a rental return of approx. $350 to $450 a week!
I realise that resale might be difficult as there are so many apartments to choose from but apart from that would it be a good idea to invest in the city or not? If not I am open to any suggestions.
Much appreciate anyone that can help.
Regards,
SteveHi Steve
Are those standard resi units or are they serviced apartments, student accommodation or something else outside the norm? I haven’t looked into the Melb market so don’t know what’s on offer – but I’d assume that sourcing CF+ IP’s in the CBD (particularly post boom) would be difficult.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Apartments in this price range are usualy Student Accomodation or Serviced Apartments and over the last number of years (like almost forever) apartments in this category have shown very little Capital Growth.
Hi Stever1
I have to agree with MarJac. The ole student accoms (particularly around Melb with Melb Uni) have traditional shown very little Capital Growth so, the question needs to be asked: are you considering an IP for capital growth or income producing at the sake of capital growth? Until you know what YOU want out of your investment, no-one will be able to answer your question with any degree of accuracy.Thanks jamie, marjac and alf1 for your posts. The lack of capital growth in the city apartments has put me off that idea. Although rental return is high, I would still like to make a decent profit when I sell.
I believe I am in a good position to invest in property but have not many ideas as to which path I should take. If you were in my situation how would you invest this money.Regards,
SteveHi again Steve.
You don't mention your income earning capability so it's impossible to calculate if you are able to service a loan of any kind. However, based on what information you have supplied, I would suggest if you are after a positive cash flow property that is going to cost you around $180K AND still provide you with some decent Capital Growth, you may have to consider investing either into a rural area OR consider a cheaper Capital City such as Adelaide or Hobart (the 2 cheapest). With the limited info you have supplied, again, it will prove difficult for anyone to advise you accurately without knowing more about YOUR goals and your specific financial circumstances outside of those already supplied.
Should you have no luck getting the answers you require from others in the forum, please feel free to drop me a line and I'd be happy to talk to you more.
Kind regards,Hi Anthony,
Yeah sorry mate, kind of hard to give accurate advice without the correct info. I think I’ll take you up on the offer, would love to have a chat to you.
Thanks,
SteveStever1,
You'd be surprised how little you'll end up with at the end of the day. Steve, find out the NET income after grossly expensive strata fees and management fees have been deducted.
It is peanuts with a little p.
Take care.
Angel
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