Melbourne Advice

Hi everyone,

Just wondering what people's thoughts on a low density apartments in city fringe suburbs such as the below are?

8/56 Carlisle Street, St Kilda, Vic 3182 - Property Details

I know the influx of cbd apartments will hurt the prices of high rise apartments, but I have read low density & older buildings with lower body corp etc can still perform (ie 2-3 stories)

I have also looked at similar apartments in areas like prahran and toorak (ie cbd fringe suburbs). I think these areas will always attract young professionals who wish to live outside of the city but work in the cbd

Any thoughts on the above would be greatly appreciated

Cheers!

Mitch

 

My folks have had a few like these over the years, they can be great for cash flow if you get them at the right price and usually (touch wood) very low maintenance.

Unlikely to get the capital gains of houses but thats the trade off for higher yield.

Make sure it has low strata fees because these plus a reserve fund will eat away your rent very fast. Watch out for high maintenance common facilities such as a lift or pool, and concrete cancer in the structure.

 

Some of these 1br 1960s/70s places will be well under 50 m2 (as low as 35 m2). They are a legacy of the 'flat boom' which sweeped Melbourne 5 - 15km ring.

Some lack their own laundries but if you're able to squeeze a washing machine in the kitchen or bathroom that could be a value-add.

They were then intended for bachelors to live in for a couple of years before they got married (which most did by their mid 20s then) or for older single people.

Check that the small floor area isn't a problem with your lender.

 

That one is main road and overnight that is one the roughest, dodgiest, dangerous parts of the area. Any local will tell you that. Low density and low body corp is great, but try go off main road and away from the dodgey parts and go for 2 bedrooms if you can reach that high. You'll attract better tenants and enjoy a better property.

 

Thanks everyone for your replies

For someone new to property investment like me your advice is great and really appreciated! Hopefully one day I will be knowledgable enough to answer some of your questions!

Do you think somehwere like Malvern would be sound for a similar apartment/flat or is that starting to become too far out from the cbd?

 

I never thought of looking at the train line as a boundary, that's a great concept

 

Except that (i) in terms of train fares it doesn't matter any more since Zone 1+2 fares (including all the way out to Lara or Melton) now cost the same as Zone 1 only and (ii) it doesn't align with most peoples idea of inner, particuarly in the west. For example Zone 1 goes out as far as Laverton. Whereas 'inner' in many peoples minds would stop not far past Newport or Williamstown.

 

We are also currently looking around St Kilda East and Prahran for an IP.

Our budget is $400-500k.

Trying to stretch for a 2br, and something with parking too.

Flying down to check a few our in a fortnights time... Love the area, but don't know it inside out.

 

I would love to get a 2 bedroom but I think it's going to be out of my budget.

I think you're on a winner getting a 2 bedroom, it's a great little hub out there! Lots of young professionals like myself want to live there and I can't see that ever changing!

 

Will be tricky to find something for that budget. There are some older unrenovated 2 bedroom apartments up to $600K available, including in Elwood, but watch out for OC fees and the condition of the building. The OC AGM minutes in the vendor statement will reveal building issues.

 

Agree with Kate - that budget will price you out of most 2BR units in inner south. 1BR not a bad option though. Take time to look ast Elwood when you come down. Inner city vibe with beach thrown in to enhance outdoor living features

 

Yeah, maybe being a bit optimistic.

Looking at nicer 1br places as being a bit more realistic, they seem to be hovering around the low $400's.