VIC 380 Melbourne

Hi all,

I am looking on advise and opinion on purchasing either a 1 or 2 BR at 380 Melbourne for investment purposes (yup, the one right smack in the middle of the city). Some questions off the bat would be

1. is this really the best time to purchase seeing that Australia is still pretty much close of to the rest of the world at least till 2021

2. I think this is a great location (8 min walk to RMIT, 5 min walk to QV mall, and 3 min walk to the train station with tram stations nearby) but would like to really hear some other views as well

3. the rental market isn't really doing that great at the moment it seems, i was told rental yield is between 3.5% to 5% and expected to pick up in near terms, what is everyone view on the rental yield in short term and long term?

4. in terms of capital appreciation, do you think a freehold apartment right smack in the city center would appreciate decently or am i better off putting my money somewhere else?

Cheers

 

Whats the body corp on this?

 

Brady Group

 

Yes, this would be off the plan but the construction is completed i believe and its ready to move in now.

seeing that the building is already completed, any thoughts on if the risk is still as high as before its completion ?

 

They would give me a guarantee 1/2 year rental at 5% returns if i purchase the unit now and said they could get a tenant within 4 weeks

 

no idea what you mean by body corp ?

 

Also bear in mind Y-man's comments have nothing to do with the terrible vacancy rates caused by coronavirus.

Even in the best times, any sort of rental guarantee should not be taken at face value.

 

yup. i asked the same question on why they offer guaranteed rent. and they told me this is only for nomination units.


Nomination units are units that previous buyers bought, paid a 10% deposit, and have their contract signed in 2017.

But now when the developers call for settlement, the buyer cant secure bank loans due to financial reasons, and hence the developer will try to find another buyer to be nominees and take over the contract fully(hence they dont need to pay the full initial stamp duty of 5.5%)

does this sounds legit ?

 

But look at all the amenities!

indoor pool and spa
steam room and sauna + gymnasium, yoga and personal training studio
Private dining rooms
a luxuriously appointed residents' lounge
Outdoor garden terrace with BBQ facilities
Private cinema room, karaoke room; complete with its own bar
Games room featuring foosball, table tennis and a giant TV ideal for entertaining guests
Dedicated concierge services
Top-floor rooftop terrace overlooking Melbourne's skyline
Library and dedicated study spaces

 

totally understand that because rental is not guarantee always. but how is the rental market doing as a whole in Melbourne ?

 

That sounds like a hell of a tale. I don't buy it.

 

Wouldnt touch this with a 100 ft barge pole even if the cbd was booming.

and its not.

but thats imho only.

 

Shockingly bad. I just had to lower my rent by $100 (works out to be 23%). Luckily the tenant even wants to stay, I assume because it's a very nice warehouse conversion. If it was a bog standard OTP I wouldn't have stood a chance of even seeing a renewal I think.

 

Jesus!! Run as fast as you can.