VIC Apartment in Melbourne CBD

Discussion in 'Where to Buy' started by Rahat Baloch, 22nd Jul, 2020.

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  1. Rahat Baloch

    Rahat Baloch Member

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    Rahat Baloch, 22nd Jul, 2020
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

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    To live in?

    The Y-man
     
    The Y-man, 22nd Jul, 2020
    #2
  3. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    If you want to live there then can you look at this apartment and imagine a nice life there?

    CBD apartment rentals are crashing, it's a big risk but that yield in this apartment looks like it has some buffer in it.
     
    Zimplestiltskin, 22nd Jul, 2020
    #3
  4. The Y-man

    The Y-man Moderator Staff Member

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    BTW - probably can't get a loan for it - too small.

    The Y-man
     
    The Y-man, 22nd Jul, 2020
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  5. Tony3008

    Tony3008 Well-Known Member

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    As an IP? It might be "currently rented for $460 per week until Jan 2021" but after that? Hundreds of better, larger properties are on the market at much less than this. And from the plan, it's very small, no storage, no balcony, no oven, no building amenities, in short nothing that I can see in its favour.
     
    Tony3008, 22nd Jul, 2020
    #5
  6. Rahat Baloch

    Rahat Baloch Member

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    Rahat Baloch, 22nd Jul, 2020
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  7. Trainee

    Trainee Well-Known Member

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    Went to a seminar where they said always buy for cashflow?
     
    Trainee, 22nd Jul, 2020
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  8. The Y-man

    The Y-man Moderator Staff Member

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    Again - is it for you to live in (eventually)? It makes a big difference to the answer.

    The Y-man
     
    The Y-man, 22nd Jul, 2020
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  9. Rahat Baloch

    Rahat Baloch Member

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    IP and may live there 3 months a year.
     
    Rahat Baloch, 22nd Jul, 2020
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  10. Trainee

    Trainee Well-Known Member

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    You want to buy instead of rent because.....
     
    Trainee, 22nd Jul, 2020
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  11. The Y-man

    The Y-man Moderator Staff Member

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    That'll make it hard, because you usually do 12 month lease.

    The Y-man
     
    The Y-man, 22nd Jul, 2020
    #11
  12. The Y-man

    The Y-man Moderator Staff Member

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    The carlton one is yielding about 5.8%pa (after expenses)

    I'd rather go for a comm prop trust for the same money getting over 6%pa AFTER costs.

    The Y-man
     
    The Y-man, 22nd Jul, 2020
    #12
  13. Rahat Baloch

    Rahat Baloch Member

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    What is Comm Prop trust ?
     
    Rahat Baloch, 22nd Jul, 2020
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  14. The Y-man

    The Y-man Moderator Staff Member

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    The easiest way to describe it would be a joint ownership of commercial property with other people.

    You get the rent from the tenants based on your share of ownership.

    Just be careful as some of them are very illiquid (hard to sell out from), but in all honesty it's probably as illiquid as the apartments you were looking at.

    As an example, have a look at:
    Charter Hall Direct PFA Fund

    and read:
    Unlisted Property Trusts [Property & Infrastructure Funds]


    The Y-man
     
    The Y-man, 22nd Jul, 2020
    #14
  15. The Nervous Investor

    The Nervous Investor Member

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    My partner & I are stuck in an apartment in Melbourne CBD & WFH during lockdown, we're hating it.

    An important thing is to check what it looks like with lights off. Many CBD apartments on lower levels & not street facing get very little natural light, which has more of an effect than you'd think, especially during lockdown - probably next 6 months. Renters steer away for these as it also means higher electricity bills.
     
    The Nervous Investor, 22nd Jul, 2020
    #15
  16. The Y-man

    The Y-man Moderator Staff Member

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    Actually - I'll revise this response! These are aimed at students - and I think the current lease is to accomo providers - so after the end of the year, they will be empty until overseas students return (which might be a looooooong time)!

    The Y-man
     
    The Y-man, 22nd Jul, 2020
    #16
  17. Shogun

    Shogun Well-Known Member

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    I might research that a little bit more.
     
    Shogun, 22nd Jul, 2020
    #17
  18. olofmeister

    olofmeister Active Member

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    that building is unilodge. i believe it is managed by unilodge. you really don't want to live there unless you are alone. but unilodge is good at getting tenants (during normal times).
     
    olofmeister, 23rd Jul, 2020
    #18
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  19. Omnidragon

    Omnidragon Well-Known Member

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    That's a fake 2 bedroom. It's what we call a 1+1
    But pretty cheap as much as I hate apartments in CBD
     
    Omnidragon, 23rd Jul, 2020
    #19
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