VIC Melbourne CBD and St Kilda Rd apartment trend

Hi all,

I am starting to watch the 3000 and 3004 areas to buy a lifestyle apartment. I've seen some graphs online that indicate a massive supply coming online with the new buildings this year and next.


I've also read the suburb report from realestate.com.au (https://www.realestate.com.au/neighbourhoods/melbourne-3000-vic).

I am just starting to study the area and would like to know where in the cycle it is currently and would appreciate any ideas on where to find the sales trend data.

 

Aren't you nervous about the huge influx of supply?

 

Hi Pins,

Yes. That is why I'm watching the market to see what the trend is. As I said, this will be a lifestyle apartment.

The idea is to buy it for us to use when we choose to and let it out on AirBnb when we are not using it. So, I wanted to understand where in the cycle it is so we can time the purchase.

 

Just be aware that AirBnb might be outlawed down the line. Current legal action aimed at stopping short stay letting has failed but there's pressure from certain quarters to change the law. http://www.docklandsnews.com.au/columns/detail/docklands-community-association-august-2015_11137/

 

Good point. Thanks for raising that.

 

Wouldn't time in the market rather than timing the market be the way to go here?

I mean the place may still get modest capital growth, maybe less than inflation for example. But if that were the case, on a $500k purchase, waiting to time the market while the price goes up say 2% in 12 months might cost you $10,000 and 12 months of not having access to your city pad.

I guess it depends what your money is doing? Do you have the cash sitting in something that is giving you good returns or are you planning to leverage to purchase the property?

 

Yeah, you are probably right. I'll just watch the market to see where the demand is and go from there.

We would use leverage to get this. Currently have funds sitting in offset against PPoR.

Thanks