Footscray 2 bedroom apartment - thoughts?

Discussion in 'What to buy' started by pablo444, 3rd Nov, 2017.

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  1. pablo444

    pablo444 Member

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    Hi all, i wanted to get your opinion on our first PPOR property in Footscray. Currently living in Sydney (Newtown) but looking to relocate to Melbourne in the next 6 to 12 months.

    We've been looking at properties in the past few months and recently i found a new development that really caught our eye. Its a 5 floor building (15 units) mainly consisted of 1 bedroom units and a few 2 bedroom units.

    Apart from the fact that we really like the concept of the development (eco-friendly, sustainable materials etc.), the apartment itself is decent in size at around 80 square meters + balcony + secure car space and has a really nice room layout, with 2 bedrooms, 2 bathrooms, walk in robe etc.

    Have been hearing a lot of potential oversupply in the area and slow growth for Melbourne in general, but not sure how much this holds as apartments keep growing in the area (similar stories as in Sydney from few years ago).
    Our aim is to hold long term and live in it.

    As for the suburb, i have read and heard from few people about Footscray's reputation from the past but i also read that this is slowly changing and the suburb is becoming popular among young people and investors given its central location and distance from the CBD and other amenities.

    Price is $520k.

    What do you think of this investment?

    Any thoughts/comments appreciated.

    Thanks!
     
  2. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Is it an OTP?
    What you described about Footscray is all true. Up-and-coming area with great restaurants and cafes. We go there at least twice a week for food/grocery shopping. Loooooove the market.

    It is not "potential over supply of apartments", the over supply happens right now.

    If your budget is limited and you plan to live in it yourself, why not? Just don't expect to see a big growth.
     
  3. pablo444

    pablo444 Member

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    Yes, it is off the plan and construction will finish in about 12 months.

    You mentioned that i should not expect to see big growth. Is this your long term view for Footscray or the general opinion for the inner-city suburbs?
     
  4. Ouchmyknees

    Ouchmyknees Well-Known Member

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    In general apartments have less growth potential than houses, this is applicable to any apartment in Australia.
    Take Footscray for example, 2 bed apartment's annual growth is about 2% whereas 2 bed house's annual growth is about 11%. (Info is from the Invest section on Realestate.com)
     
  5. private_number

    private_number Well-Known Member

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    Make sure you look into what is actually being built around that area too. 5 story development is tiny compared to some of the developments that are occuring there now. Just ensure that when this is completed in 12 months, you wont be dwarfed over by a bigger development next door or across the road in 1-2 years.
     
  6. DrunkSailor

    DrunkSailor Well-Known Member

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    Footscray is my area. It has to be the second most over-supplied area in Melbourne second only to the CBD. The apartment market is quickly flat lining


    and there's still a ton of new complex set to be completed. Also, an agent at told me he currently has 900 off-the-plan apartments for sale.

    This whole year there's been barely any old apartments on the market for less than 350k now all of a sudden there's 7+.

    2 months ago an apartment on eldridge st sold for 316k at auction and now yesterday that same agent just listed an even better apartment in a better section of the street for 15k less (auction).

    There's also a couple of apartments in West Footscray that just came on the market with an asking price of 300-330k... The same price they were selling for at the start of the year.

    In Prahran and Windsor - two of the most expensive, prestigious suburbs in Melbourne - Two 60sqm meter apartments in a small complex have lowered their asking price from the 450's to 440s'.

    In Brunswick - Another suburb much better than Footscray - A 65sqm, renovated aparment is on the market for 400-440k. A few months ago, during the peak of the urgency, people were paying 460-500k for similar apartments in the same area.

    I don't know if it's just end of the year desperation or what but it looks like prices are falling.

    And lastly, why are you buying off-the-plan? They are notoriously risky purchases. For 520k I could find you something much better.

    How much are the body corporate fees at this complex you're thinking of buying?

    Ps. I'm also looking to buy in Footscray for a place to live yet this recent turn of events has really put me in a tough spot also.
     
    Last edited: 11th Nov, 2017
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  7. DrunkSailor

    DrunkSailor Well-Known Member

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    don't be fooled by the cosmetic appeal of these flashy off-the-plan apartments. My brother fell for that in Perth. He paid 380 for a brand new luxury apartment and now the bank can't sell them for 300k because nobody wants them. Nobody even showed up the foreclosure auctions. Now my brother is stuck paying $100 per week in body corp fees alone in apartment nobody wants to buy. If the market declines these apartments will be the biggest liabilities.

    Check this one out: 10.03/240 Barkly Street Footscray Vic 3011 - Apartment for Sale #126624318 - realestate.com.au

    It just sold for 405k a few weeks ago. It has the lowest body corp fees out of any of these new apartments at 2k per year. The original owner of these would have paid 450k a few years ago.
     
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  8. DrunkSailor

    DrunkSailor Well-Known Member

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    Also, in regards to lifestyle, there was recently a report about the most dangerous train stations in Melbourne being the south-east and far west areas. Footscray station wasn't even mentioned. It's not a party area like the other inner city suburbs, it's more family oriented meaning it's a lot more peaceful.