CBD. Pros n Cons?

Discussion in 'Where to Buy' started by AdamPineapples, 24th Sep, 2015.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    Doesn't work in the CBD and areas with high rate of development because your renovated thing has to compete with a brand new flashy thing next door (which by the way has also just blocked your view) in your tired old building (because you can reno you unit but the common areas remain old and tired)

    The Y-man
     
  2. AdamPineapples

    AdamPineapples Well-Known Member

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    Haha yeah I actually wasn't thinking CBD I was just saying in a general suburb
     
  3. Sackie

    Sackie Well-Known Member

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    Buy an older place and renovate it?
    Now see I was reading about this not long ago. People who bought a crappy unit. Put 30k worth of Reno into it and 6 months later it was revalued at 100k more.
    It really intigued me because this strategie frees up equity because of the revaluation. Have you done this before?[/QUOTE]

    @AdamPineapples I have done it and I suspect others on here would have to. Its a combination of buying well, buying the right type of dwelling and having that price discrepancy for older vs newer looking with a jump in valuation for the 'newer' looking one.
     
  4. kristaje

    kristaje Active Member

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    We lived in both Melbourne and Sydney CBD before. I think you can do very well investing in one or two bedder CBD apartments, but need to get a good quality building and well managed one. One or two bedder, because people tend to move out of CBD when they start a family.

    There are so many poorly designed apartments in CBD, especially Melbourne IMO - tiny bedrooms, bedrooms without windows, facing wall - those types of apartments won't do well as investments. We also saw how badly some buildings in Sydney were managed, with overcrowding in apartments and people using pool/gym bathrooms as their main bathrooms - those won't do well too.

    An apartment located in a good building with open view can be an excellent investment. One of our best investments so far is actually in Sydney CBD. It's a large one bedder in a heritage building with high ceiling and open view. Purchased it $325k in late 2009, did some cosmetic reno (paint, carpet) and rented it out furnished. It's been positively geared since day 1 and almost never empty. It's now renting at $590pw and similar apartments in the building are selling for $620k.
     
  5. larrylarry

    larrylarry Well-Known Member

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    My friend who bought in docklands OTP years ago can't offload now.