NSW Is this a bargain or a pipe dream?

This studio in Redfern looks too good to be true. Sure, it's small and a little older, but the rent would easily cover the mortgage. And there's nothing else around this price anywhere near the city.

A good deal, or do you think renters will prefer to have one of the newer apartments that are springing up?

15/33 Wells Street, Redfern, NSW 2016

 

Its 30sqm. Limited lending options. and what is the body corp?

 

Pull down beds are a PITA in my view, if you have to pull it down every day.
The toilet door opens straight into the kitchen- yikes!
No car.

As @Trainee says - what are the strata levies please? Difficult to finance (not impossible) units under 50m2. This makes it difficult for purchasing but also when selling again.

Tenants will walk across the road for newer property with a gym or pool for a few extra $’s per week.

 

I'm waiting to hear back on the strata, but a similar flat in the building was listed in 2016 with the following: Strata $809.65pq // Council $208.30pq // Water $180.35pq

 

Is it really "worth" $430k?
Seems like a lot of money to someone from a long way away.
That would be a $150k to $175k flat in Perth with a good RE agent selling it.

 

And Maybe $800,000 in Manhattan

heheheheheh

 

$650 000 in Mount Druitt?

 

321 East 43rd Street, NEW YORK, NY 10017 - realestate.com.au

 

This is why prices are now dropping 10% a year. Redfern more expensive than Manhattan - ouch! In terms of value it's more sewer-pipe than pipe-dream ha ha

 

@JoshB to go back to your previous post about wanting to make a lot of money from Property, why/how do you feel that this property will go up in value to meet the goals you mentioned there?

With these types of properties along with probably needing a minimum 20% deposit due to the size, you've also got a very limited resale market i.e. investors, single person etc..

Personally I can't see this type of property in this type of market i.e. Sydney going up that much in the short term.. It may potentially be a longer term play but these are the sort of considerations you should be making when evaluating a property.

Asking yourself why you feel the property will go up in value, factors that will contribute to this and then testing what assumptions you've made

 

I wouldn't touch it. Even if you got finance, you'd have a very hard time selling it in the future. It is also highly unlikely to go up at all or even retain that value IMO.

 

Its not even suitable for couples , might work in a market like Hobart at the moment , but with an oversupply of Sydney apartments just run away.
For that sort of price you could easily get a 4 BR house in other cities.
We pay slightly more Strata than that and water is included , plus its a 3br apartment .
Run away.

 

I don't think you'd have problems renting it out. It could even be Airbnb'ed successfully. But me personally, I'd go for something larger. A couple of other things. The building isn't that appealing/inviting. And that quoted strata fee for a property that size is relatively high. You can get something twice as large with the same/similar strata fee.

 

I have walked past the block and it's pretty gross. Red brick building on a concrete base with no greenery in sight. Though in Sydney people tend to buy for location rather than the building itself - a rotting, mouldy carcass of a house that's uninhabitable is worth $1.2million here!

Sounds like it's not a great choice, I was thinking maybe it could be good to get onto the 'ladder' but was good to get some more experienced opinions, thanks guys.

I felt like if the rent would cover the mortgage then I could hold it until it went up in value, based solely on location - rather than on the property itself which is little more than an antiquated shoebox. Brought it here to get some more experience opinions, learned a lot!

 

I suppose you could buy it and hope in a few years down the track a developer wants to develop the site. That would be a huge payday.