VIC CBD ..........

Sounds like one of mine.

No, you can't get any townhouse in those area with $900k budget these days no more. It's 1.1, 1.2 now at least.

 

7% gross yield on a flat to declining capital value in real terms, with high increasing costs? No thanks.

As others have mentioned, if yield is the focus there's options out there which will have the same/higher yields without all the same downsides. (shares)

 

not sure what 3-2-1 was sold for 600-700K but the apartment market has many many segments
I would not go for anything less than 15 years (if you want art deco ) - you go outside Melbourne CBD

i would go for "size". sqm as opposed to old apartments 15 years old that being said older apartments in late 90s- 2000s are huge compared to what they build now.

I probably have bought and sold more apartments in Melbourne than anyone on this forum and older apartments esp art decos have many issues unless they are significantly renovated

1206/181 Exhibition Street, Melbourne, Vic 3000 - Property Details - 650 in 2014 (though I do not think this would be 900k) apartment now

137/283 Spring Street, Melbourne, VIC 3000 (796K in 2011) and yes this would be 900-1 mi dollar apartment now.

 

what happened to those double West Melbourne Victorian houses you bought in auction which was in the news couple of years ago?

 

Oh still got that, there's a fair bit of empty land at back, haven't developed tho.

My neighbour is trying to build a 5 storey hotel on his land at the moment, if he gets up should set a precedent for mass there. Would probably be a develop and hold tho.

Come grab lunch when you're in town btw.

 

I'd make an exception for this one @The Y-man

601/616 Little Collins Street Melbourne Vic 3000 - Apartment for Sale #124918066 - realestate.com.au

Lucky person that gets to live in that

 

the main issue I have with CBD unit investing is that the market ( buyer pool) is concentrated- most of the high rises and mainly otp are targetted at foreign capital. Once they are not new, then what? Its tougher for foreign capital to bankroll these ( they cant buy them themselves legally once not new- perhaps through family who may be australian citizens, but that too is a limited and concentrated pool)...body corp keeps increasing YOY...and the locals dont want them so much...so what happens then..all the while seemingly ever increasing stock.
3 bedroom apartments included, more pronounced maybe for 1 and 2 bed stock, but similar story even for 3 bedroom stock.
Thats why i like OO areas- where the locals buy; there is always a reliable market in that- else timing becomes crucial; and it might not suit you what suits the market with respect to timing- thats the problem with timing- what if a good time to sell in the market is not a good time for you...

 

Looks very good. What are your opinions @MTR @Omnidragon , is it a good chance to get a nice and unique place while people don't think apartments are good?

 

Yeah for sure was in Thailand and only recently got back so only saw this.

That West Melbourne buy which was in the news is huge due to distance to the CBD. I don't think many ppl can find those places again. it is like that place in Chinatown Sydney sold by a family held from decades.

 

Depends on where you buy. My CBD apartment is a small boutique one, 71 apartments and 42 of them are owned occupiers. Very tightly held. I bought for 362k in 2012 and someone just offered me 490k for it. Not great growth compared to Sydney but my point is owner occupied majorities do exist in the CBD but only in the classier style buildings with big proportions.

If I could turn back time I'd still probably buy something else, so don't get me wrong I'm not advocating people buy in the CBD, but I'm glad I didn't buy in one of those 1,000 apartment behemoths.

 

Yes, this is true. OO predominant buildings do exist even in investor dominated areas. However, there may be a residual effect because of this ie there may be a fair amount of potential buyers who will broad-brush the entire area instead of going into the details of oo buildings within the area.

 

No doubt. As I said I wouldn't buy here again if I could turn back time. But an apartment going from 360k to nearly 500k is probably one of the better "mistakes" that I've made. Oh well live, learn and push ahead