IP – Apartments in Elizabeth Bay / Potts Point (Sydney) Area

I have a VERY small 1 bedder in Potts Point. I bought it in 2008 when everybody was saying we werre crazy toi be buying property in this market.
We were looking at studios and this one came up. As no1one was buying places were sitting for a while. This opne had reduced in price already but we didn’t know that until later so we offered a low price. We were laughed at. We 2 weeks later the agent rang to askl us if we wanted it for $2K more. Of course!! It was cheaoper than some of the studio’s we were considering.

It went up about 40% in 2 years. In the last 4 years it’s gone up another30% so we are very happy. It’s also cash flow positive.

When looking be careful of serviced apartments. The yield looks attractive but there are big ongoing costs plus there are so many of them that CG is lower. Also consider the restrictions placed on them.

Also be careful of very large complexes. Smaller boutique ones are better. Check the strata report VERY carefully. As the buildings are VERY old maintenance costs can be onerous.

Also be aware of those units on company title. I’m not saying don’t buy them but be aware of what it means.

I wish I had bought more at the time. Things have gone up quite a bit so I’d wait until the hype dies down before looking there again.