Looking for next IP in Prestige Market

Hi Everyone,

I have just joined PC and this is my second post! Check out the introduction section where I have posted some details about my background if you would like to know more about me.

I am in the market for a low maintenance, free standing property in a blue chip location. I am comfortable with low yield.

What is critical is market outperformance in terms of CG with scope for manufacturing equity ie buy, cosmetic update, lease with scope remaining for substantial renovation down the track (5+ years) prior to selling. Obviously the trigger on when the renovatation and sell will take place will be predicated on net profit margin.

Suburbs for consideration are:

Melbourne
Brighton, Albert Park/Middle Park, Hawthorn

Sydney
Kirribilli, Balmain, Neutral Bay, Cammeray

Keen to get your thoughts on which suburb you believe would deliver outperformance?

 

A lot of people on here would not advocate going for such a high value investment at this stage of the cycle but if you really had to, have a look at Miller's Point.

The department of housing are selling off state listed heritage terraces in very poor condition. People have flipped these in the rising market in the last few years and made some serious gains.

Be prepared to pay 2m+ for even the cheapest ones and spend at least 300k on rennos but the end result could potentially be 3m+ but for me personally at this time of the market I would be very careful flipping as you might be catching a falling knife.

Downside is these terraces need a lot of work to become habitable they are state lister heritage items meaning the approval process is longer/stricter for even minor works. Works that wouldn't usually require approvals such as painting inside and outside, flooring, bathroom and kitchen refurbs even need approval. If you are mad enough, there is some serious potential to add value to these houses.

 

Unley, st peters, medindie in SA?

 

Hi @Sky,

No crystal ball here but I would be comfortable to conclude that this strategy is high risk given the current Sydney markets, especially prestige and OO markets. I think in 2-4 years time it could be lower risk but atm you will be paying absolutely top dollar. If you still think you can find a deal with that and make profit in a few years time then more power to you.

 

@Sky, it is a pity you are not looking in Brisbane.

We are considering selling our PPOR next year. If you have a cool $5M, I could bring our sale forward .

The sky is the limit.

 

Thank you Y-Man but not quite the makets I'm looking to get into.

 

I didn't realise Brisvagas had $5m properties

Sounds impressive. Where are you moving to?

 

Look at this beaut!


53 Macquarie Street, Teneriffe, Qld 4005 - Property Details

 

I didn't say my PPOR was worth $5M; I said I would sell it to you for $5M .

Compensation for moving early.

Gold Coast

 

Wrong side of the river .

 

Picky aint ya!