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Apartments in Melbourne

Discussion in 'General Property Chat' started by Alfiesausagedog, 12th Oct, 2016.

  1. Alfiesausagedog

    Alfiesausagedog Active Member

    Joined:
    16th Sep, 2016
    Posts:
    30
    Location:
    Brisbane
    Hi guys,

    I will be Melbourne soon and am interested to purchase my first property. My budget will be approximately $350k-$400k and I plan to live in the property for at least 4-5 years before renting it out as an IP.

    I expect to be working in the CBD and therefore would like to be within a 45 minute commute to the city centre, however with my budget in mind there aren't a lot of options available to me.

    One thing I have noticed is a few old (some Art Deco) buildings with 1-2 bedroom apartments, most having less than 8 apartments and very low body corporate fees (due to the lack pools, gyms, elevators etc.).
    I understand the current oversupply of new medium & high density apartment buildings in Melbourne CBD is making apartments a questionable investment choice (especially off the plan), however I would like to know if anyone here has any thoughts on these older style 'flats' which seem to be available in blue chip suburbs relatively cheap. Are they likely to suffer the same vacancy rates/poor capital growth as the newer stock?

    Thanks a lot,

    A
     
    Perthguy likes this.
  2. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    176
    Location:
    SA
    As long as it's spacious, got a unique layout, character, it will be sought after.
     
  3. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    74
    Location:
    Melbourne
    Spacious, older apartments are very popular, especially because they have much larger rooms than the new standard size. But watch out for possible problems with older buildings due to age.
     
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  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    898
    Location:
    Melbourne
    14/66 Murray Street Prahran Vic 3181 - Apartment for Sale #122938062 - realestate.com.au
    5/7 Denbigh Road Armadale Vic 3143 - Apartment for Sale #120127593 - realestate.com.au
    15/405 Dandenong Road Armadale Vic 3143 - Apartment for Sale #123365986 - realestate.com.au


    I have one in the area. Vacancy is NOT an issue.
    Capital gain / volatility is.

    Paid $150k in 2001
    Bank val $350k in 2003
    Sales nearby at $400k+ 2007
    Today Bank Val $350k.... :(
    Main reason is getting finance for these is more difficult (due to size)

    The Y-man
     
  5. Alfiesausagedog

    Alfiesausagedog Active Member

    Joined:
    16th Sep, 2016
    Posts:
    30
    Location:
    Brisbane
    I appreciate everyone's responses so far, really solid information thank you.

    The Y-man, I appreciate the links. These are definitely the type of property I have in mind, as well as the approximate location. Are you expecting much growth over the next couple of years? Also, do you plan on holding this property for the long term?
     
  6. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    898
    Location:
    Melbourne
    I'm hoping for a roaring increase so I can sell my apartment! :D (I'm in the process of shifting my portfolio from apartments to houses)

    The Y-man
     
  7. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    898
    Location:
    Melbourne
    @Alfiesausagedog

    Also maybe consider units (as in "villa" not "apartment" in non-vic lingo) in Thomastown/Epping

    (yes, yes, I own units there.... been talking them up lately - probably get pinged for ramping and hyping)

    38 min train ride to CBD from T-town station

    CAUTION - some of the alleged 2 bedders are really
    1 BR + <a-tiny-room-where-you-*might*-fit-a-sleeping-mat-into>


    Recent sales:

    1/17 Caroline Street, Thomastown, Vic 3074 - Property Details
    1/3 Edna Street, Thomastown, Vic 3074 - Property Details
    58A French Street, Lalor, Vic 3075 - Property Details
    1/22 Currajong Street, Thomastown, Vic 3074 - Property Details

    The Y-man
     
  8. Alfiesausagedog

    Alfiesausagedog Active Member

    Joined:
    16th Sep, 2016
    Posts:
    30
    Location:
    Brisbane
    I appreciate the hot tip re Thomastown and Epping.

    Cheers,

    A
     
  9. hanskyut

    hanskyut Member

    Joined:
    30th Aug, 2015
    Posts:
    9
    Location:
    VIC
    How is the yield and CG on those kind of properties in that area?