VIC Melbourne CBD apartment (if you had too)

Discussion in 'Where to Buy' started by KDP, 5th Sep, 2017.

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  1. KDP

    KDP Well-Known Member

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    I'm well aware of the oversupply problems for apartments in the Melbourne cbd and that none of them will b good buying but just trying to make th best of the situation.

    My mother is going through essentially a mid life crisis. She has convinced herself that she wants a pad in the CBD. It may be seen as a lifestyle purchase but I'm not convinced that she won't get bored of it after a while.

    She has asked me to help look at apartment around the $350k range. Can anyone help with some suggestions as I have no idea about this market.
     
  2. peastman

    peastman Well-Known Member

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    She really wont get much for $350k in a decent location in or near CBD. That price point is mainly student accommodation and small bedsits. Not really something a mature person would want to live in as a permanent thing.
    Good luck, just watch out for Owners Corp fees.
    It would probably be better to rent something, then if it really is going to be a long term thing, she can decide where, what and how much.
     
  3. Redwood

    Redwood Well-Known Member

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    Hi there,

    $350k may not get you the janitor cupboard!

    Why not suggest she rent for 12 months see if she likes it and then invest in 12 months after the mid life crisis is over?

    I would not be touching anything near the city but it is common for those nearing retirement to sell land in the suburbs and use the cash to move to the city and downsize.

    Everyone for themselves. Get used to all the students in neighboring properties.

    Cheers Ivan
     
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  4. KDP

    KDP Well-Known Member

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    Thanks peastman. I did suggest renting but she's adamant on buying. I think it'll have to be a studio at that price range too, think there's some flexibility to move up in price but I don't want to suggest more money getting tied up in this unless there's a compelling reason to.
     
  5. zed_kid

    zed_kid Well-Known Member

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    Get something established, lowest density possible, highest land content, with no building amenities. Does it have to be new and flash?
     
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  6. S.T

    S.T Well-Known Member

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    My mum bought a big 90's apartment in South Melb when she retired, she loves it. Close to trams, close to South Melb market - she has a few friends in Port Melb and St Kilda and they're always out and about doing stuff - have a pretty good social life.
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Does it need to be CBD?
    Does she need a carpark?
    That price range will get a 1BR in Prahran/Armadale/StK East with car park

    The Y-man
     
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  8. KDP

    KDP Well-Known Member

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    Yes to cbd, no to car park.

    Totally agree y-man. Those would be where I'd be looking if it was me.
     
  9. The Y-man

    The Y-man Moderator Staff Member

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  10. KDP

    KDP Well-Known Member

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    Do they esist in the cbd?
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    Make sure you avoid buildings with potentially flammable cladding - expenses on horizon!

    The Y-man
     
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  12. kaibo

    kaibo Well-Known Member

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    in a news article a few days ago (the australian or the age) they said 80% of them had this (obviously to different extents) but more likely in block of 20+ apartments
     
  13. TMNT

    TMNT Well-Known Member

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  14. The Y-man

    The Y-man Moderator Staff Member

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    No views, not much sun. It's a low-rise surrounded by taller buildings.

    Noise isn't too bad though (unless something going on at Etihad).

    The Y_man
     
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  15. Zeehan

    Zeehan Well-Known Member

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    How about Spencer Street, the building attached to the Atlantis Hotel. They have studios that come up for sale occasionally. You would need to check on the strata fees though, as there is a pool, and a small gym I think. But I like the location, opposite Southern Cross Station, Etihad, and close to the Ritz Carlton that is under construction. It's an easy walk to everything.
     
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  16. MikeyBallarat

    MikeyBallarat Well-Known Member

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    How about she goes for a 60s-70s build apartment in a true blue chip inner suburb (Hawthorn, Camberwell etc) and renovated to suit?
     
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  17. albanga

    albanga Well-Known Member

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    Few questions first people.

    Is she buying to move into it?
    If so, why? Does she work in the CBD? If so where? If not then again why?

    Does she currently own a home? If Yes then what will she be doing with it?

    These and many more questions need to be answered before anyone can give you any kind of answer.

    If it's for an investment then honestly send her here, heck I live in Melbourne and would be happy to come give her a 2 hour speech on why buying in the CBD is the worst idea possible.

    If it's to live in and it's pure lifestyle then that needs to be the number 1 decision maker. The CBD is huge with each area offering something different. Work would be my number 1 driver. I have friends who purchased in southbank knowing they would have negative growth for probably....well ever. But they are comfortable with that as they love the area but more so the 10 minute walk into work. One of them works in IT and requires to do a lot of after hours work so that convenience is worth a premium.

    If it's not work related then what does she enjoy? Does she like strolling around shops and cafes? If so anywhere in StKilda Rd is out. The actual CBD might be the go, aiming somewhere near Degraves.

    The fact is this. If she is buying for an investment then honestly as her son you need to do everything in your power to prevent this. Clearly she is getting outside HORRIBLE advice.
    If it's for lifestyle then where is the best to buy as irrelevant? None of it is good? It's all garbage and has not even started its plummet which is coming in the next 1-2 years (believe me when I say it will be ugly!).
    So the only thing that matters is what will make her happy. The best thing you can do as her son is if it's for lifestyle and she is 100% not budging then go on the ride with her and just make sure she chooses the most appropriate area for her NOT because of anything growth related. The best thing you can hope for is she loves the area and stays for a long time and pays down the mortgage.

    Good Luck
     
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  18. The Y-man

    The Y-man Moderator Staff Member

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  19. The Y-man

    The Y-man Moderator Staff Member

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    It's actually lifts that can be the most expensive. For a 20 storey building, they can be $500k to $1m per lift every 10 years to maintain (depending on speed etc). Even if you split over 250 apartments, it's quite significant.

    The Y-man
     
  20. TMNT

    TMNT Well-Known Member

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