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VIC How is Footscray, Vic??

Discussion in 'Where to Buy' started by Gim hwee lim, 4th Nov, 2015.

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  1. Gim hwee lim

    Gim hwee lim Member

    Joined:
    15th Jul, 2015
    Posts:
    19
    Location:
    Vic
    Hi mates

    I have a 2 bedroom, 2 bathroom apartment bought in central Footscray 2 years ago. It does not seems to have appreciated in value since then.

    I am thinking of selling it. If I sell, I will make a loss of around $5,000 after deducting the stamp duties I paid and the agent commission.

    I am tempted to sell as I see little upward appreciation in prices of apartments here. Plus, with so many apartments here, its value might drop start next year. Not sure if I am right. I hope to use the money after sale to buy a house and land somewhere in the southeast later on.
    I think house and land appreciates better... I have no issue paying the loan now. Any advise would be good.

    Thank you
     
  2. bernardblack

    bernardblack Active Member

    Joined:
    30th Oct, 2015
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    39
    Location:
    VIC
    I would sell it. Better off use the money somewhere else. Brisbane or Adelaide or a house in Footscray.
     
    Last edited: 5th Nov, 2015
  3. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
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    Location:
    Melbourne
    To only allow 2 years to make a non manufactured growth IMO is a bit naive. Why did you purchase it initially? What is your chosen strategy? If your expecting gains in 2 years then best to sell up, buy a dump to renovate or a house on a decent block and subdivide/develop.

    I don't think Footscray will see growth for quite some time, ecspecially apartments and ecspecially if you purchased one in a block of 50.
     
  4. Gim hwee lim

    Gim hwee lim Member

    Joined:
    15th Jul, 2015
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    Location:
    Vic
    Yes. I was pretty naive to buy it two years ago, thinking that apartments in this area will rise in value.

    Now I am pretty disillusioned with how apartments are performing here as well as in Victoria on the whole. I think chances of rise in value is very limited. Worse, it might even drop due to the seemingly unlimited supply of apartments in this area! . So it is better to cut loss and focus in buying something with land when the expected slowdown in house prices occur next year.
     
  5. Gim hwee lim

    Gim hwee lim Member

    Joined:
    15th Jul, 2015
    Posts:
    19
    Location:
    Vic
    Yes. I was pretty naive to buy it two years ago, thinking that apartments in this area will rise in value.

    Now I am pretty disillusioned with how apartments are performing here as well as in Victoria on the whole. I think chances of rise in value is very limited. Worse, it might even drop due to the seemingly unlimited supply of apartments in this area! . So it is better to cut loss and focus in buying something with land when the expected slowdown in house prices occur next year.
     
  6. Barny

    Barny Well-Known Member

    Joined:
    16th Oct, 2015
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    1,181
    Location:
    Melbourne
    5k loss isn't much, compared to what you may loose when all the apartments are complete. Does it rent well at least?
    If you buy the next (house) well, then you can make the cash back. Make sure you can also add some value to it, that increases your chances too.
     
  7. bernardblack

    bernardblack Active Member

    Joined:
    30th Oct, 2015
    Posts:
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    Location:
    VIC
    My friend is having problem selling her apartment in Richmond.
     
  8. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    342
    Location:
    Melbourne
    Hi there - very strange to see there has been no appreciation in your unit. I have seen the contrary and this will depend on the location of your unit and of course the building size/ attributes.
    According to RP Data the following Capital growth occurred with units:
    2012: 7.1%
    2013: 8.3%
    2014: 3.8%

    So steady growth across the last 3 years with a significant level of sales this year. I have seen this with the market myself. Further 53% of the population are renters which generally means high demand for units.

    Cheers Ivan