Bought a place in 2021

So been keeping it a bit hush but not long ago I bought a place at auction . It settles in a few days and I'm pretty excited about it. It's 3/2/2 apartment, kinda dated internals in a blue chip suburb of Sydney. Huge garden. Good OO appeal. I paid in the 2m+ price point. The plan is to do a 500k reno, live in it for a period of time and then sell for around 3.8-4m. Many sale comparables currently to make the numbers work. If all goes to **** and the market turns back or I can't get my sale price, I may end up living in it for awhile and I'd be happy to.

I'll update once the reno starts .

 

Nice. I’ve been banging on for a while that good apartments are undervalued. I hope it works out for you.

 

There's now a huge gap from apartments to semis/houses in Sydney's East. Many, many people will be priced out of buying a new or renovated semi or home for 5mil plus. Pre covid, 3m was possible. No more. The next best option will be a luxury apartment with a garden. I think this specific type of stock will become more and more popular over the next few years and demand will increase. It's already happening.

Worse case, I'll live there for awhile longer

 

Awesome to hear man, how are all your other projects coming along?

 

Time to learn about your new OC & working them to get your approvals.

 

Sounds like you are copying my property investment strategy .

If you are, you are 5 years behind me .

Congratulations. You know my thoughts on Apartments.

Will be keen to see it next time I have spare time in Sydney.

 

Congratulations!! It would be great to see some progress pics when the renovations start if that is something you feel comfortable posting.

 

Thanks. Fingers crossed it works out.

I had a few projects come to completion just as covid broke out and auctions/inspections were greatly curtailed etc and I'd just gone to market. Buyers were terrified, saying markets are going to crash and offering heavily discounted prices for my stock . Needless to say I didn't sell. Spent thousands in marketing, even more in staging etc and all wasted. It was quite disheartening at the time because you take so many risks, put so much effort into projects and then an event like Covid happens and derails your plans. But that's life and part of the risks you take when you invest.

The great news is since then I have sold some for amazing prices . Even more than I was expecting pre covid. I also have some more coming to market soon and I'll likely break suburb records, possibly more than once.

Tbh in all my 20 years of investing I'd never experienced anything like the covid situation. Whatever I renovated or built and sold, sold quickly and well. So this has been a growing phase for me personally in terms of staying focused and keeping a resilient mindset . I can't just talk the talk, I gotta walk it too when times are challenging. And those close to me reminded me of that. It was not easy to not let the fear take over and hold put but SO glad I did.

I'm so grateful that I've managed to come out the other end intact.

 

Will update with some renovations in time mate.

 

Copying....

Time to write your book with all your investment wisdom

 

For many it's not even a "next best option". Plenty want the low maintenance life of an apartment with the freedom to have BBQ's in a garden. I assume it's ground floor? I love ground floor apartments cause it's more house-like, don't have to wait for elevators / or deal with stairs, and you get a courtyard. You'll do well I'm sure.

 

I agree that 'lifestyle apartments' will do well in the coming years. In our area, a lot of older people are selling their 100yr old homes for $2-3m and then spending $1.5m on a nice unit nearby. As house prices continue to move, unit prices will follow, especialy if they are house-like (with a court yard, small complex etc).

I also think some people are underrating how inner city apartments will perform (I'm referring more to good ones, well-built in small complexes, not those in large brick jungles). There is so much talk about people moving to Byron Bay, moving up/down the coast, moving onto farms etc but once the leisure wears off, many will be wanting to move back near the city again.

 

Yes ground floor mate. Saw some good ones with big courtyards on upper levels but I think the gardens will yelid a premium when the apartment is done up.

 

Agree. Especially the lifestyle one's. Also, there are many folks who won't want to leave certain areas of only buy in certain areas. This type of stock is a perfect in-between. It's far superior to the average apartment but not quite as costly as a home. Also if done well, all the emotional buying factors will be present .

 

500k reno for an apartment? Are you going full Sultan of Brunei?

 

I'm wondering this too. With an apartment you're limited in what you can do to begin with so I don't even know how one could spend this much. I'd like to think the renovation is:

10k for new carpet
490k for a gold statue of himself in the garden

 

Assuming it wasn't all that easy to buy into? Looking in the inner east at $2m+ apartments everything that is listed seems to sell real quick.

Fair bit of upside though if you get the renovation right! (ok maybe not the same view... but there is a market!)

Bondi Beach penthouse sells for $20million as highest priced apartment in Australia | Daily Mail Online

 

Only issue with ground floor vs top floor apartments are the potential noise issues.

Have no problem getting a ground floor unit at as an IP, but as a PPOR would consider other options unless I was in a boutique, expensive block of 2-4 (where the only people who an afford to buy in are rich old farts).

 

It's a full gut job down to the bones for the entire place. 60-80m stone throughout, gaggenau integrated appliances, highest fixtures and fittings, ducted zoning, full landscaping etc etc. 500k is allowed for. Most likely will come in a little under.

Also 3 bedder larger apartments have more space, therefore bigger kitchens/bathrooms etc. So more in cost compared to a 80sqm unit. Some can be bigger than semis.

 

Wasn't entirely easy but surprisingly not extremely difficult.

I think 90% of OOs looking to buy apartments aren't looking at this kind of stock, out of their price range and those who can afford it want it complete. And investors haven't flooded back yet. Those who missed out on homes/semis are looking at buying completed luxury apartments. Not gut jobs. So while there is competition, its not totally fierce. Yet.