VIC Melbourne CBD apartments - what??!

Discussion in 'Property Analysis' started by jaybean, 4th Aug, 2018.

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  1. jaybean

    jaybean Well-Known Member

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    We all know the story about apartments in Melbourne. But I bought a 1 bedder in a beautiful 100 year old building and I’m constantly shocked at how well it’s held up.

    I paid 360k for it in 2012 and last year a one bedder that’s much smaller than mine sold for over 500k. Fast forward 12 months and now my neighbor just sold his 2 bedder for a record breaking price at 850k with no parking.

    I’m not saying I made the right choice - if I had bought in Sydney at the time I would have done much better. But holy crap I’m constantly amazed at how well non-dog boxes hold up. Looks like I’m not the only one that likes large proportions and old school charm. I shudder at the thought of those modern day 2,000 apartment monster buildings.

    This is a great example of the saying “there is no “one” market when it comes to real estate.”
     
    Last edited: 4th Aug, 2018
    marty998, 16491, WattleIdo and 2 others like this.
  2. The Y-man

    The Y-man Moderator Staff Member

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    Yup - despite the doom and gloom, the prices have held I think in part to the Gov's free tram zone. I was at an international conference being hosted in Melbourne last month, and the thing that everyone absolutely raved about (and these were people from Germany and Italy) was the free tram zone.

    The Y-man
     
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  3. jaybean

    jaybean Well-Known Member

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    Is this free thing temporary or indefinitely for now?
     
  4. Iamnumber5

    Iamnumber5 Well-Known Member

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    How much is the body corporate and rental price for something like that?
     
  5. jaybean

    jaybean Well-Known Member

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    Not sure about my neighbor but I’m paying 3600-3700 a year.
     
  6. ChrisDim

    ChrisDim Well-Known Member

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    hi @jaybean... you're spot on. The issue has never been with one bedroom apartments in older established buildings, rather those tiny apartments in the numerous towers going up around Melbourne CBD. You can't go wrong with yours and to be honest, your bigger gains will come in the future when unit and apartment living becomes more acceptable for Melburnians. Not to mention how much easier they are to rent.

    BTW I can tell you.. your returns in Sydney would have been very similar. One bedders for $350K in 2010-2012 (about 10-15K from the CBD) are worth about $550 today.... so don't think you missed out. :)
     
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  7. Layla

    Layla Member

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    It sounds like a great buy and a perfect place to live! Don’t regret purchasing there, as it not only sounds like a wise investment decision but also somewhere you love - win win!
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    Permanent as far as I know.

    The Y-man
     
  9. Harry30

    Harry30 Well-Known Member

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    I think the Metro will also be terrific. This will just open up areas surrounding the city. StKilda Rd finally gets a train station (Domain) and Melbourne Uni/Carlton area as well. We need more of these 10 year investments.
     
  10. Tools

    Tools Well-Known Member

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    Correct, and there is talk of extending it.

    Tools
     
  11. JDP1

    JDP1 Well-Known Member

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    I agree with what @ChrisDim said.
    The issue is not with unique character apartments in any city...it's the generic apartments in the high rises that are the issue.
    Hold this if you can.. Your biggest concerns won't be renting it out or price holding or appreciation, it will be with bodycorp increases.
     
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  12. TMNT

    TMNT Well-Known Member

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    I have a soft spot for large 1 bedroom apartments that either have character or are unique. Even brand newish ones, that have a big courtyard, or a huge living room, or something that makes it unique I love.
     
  13. Keentogetstarted

    Keentogetstarted Member

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    How about smaller 1 bedroom apartments in South Yarra, Prahran, Windsor area - older types not the new high-rises? Have found one which is in a quiet street, close to public transport options and amenities, lots of natural light, good layout and I see it being popular with tenants. Only about 45 sqm, no carpark or balcony in a block of 12 units. A yeild 5.9% gross, 4.5% net including property manager fees, body corp, rates, insurance. Are there others investing in this type of building?
     
  14. Angel

    Angel Well-Known Member

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    What does the building itself look like? what is the view?
     
  15. aussieB

    aussieB Well-Known Member

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    I am sure you will get more advice, but if you are going to get finance for this unit, I encourage you to find out if a bank will even lend you the money for such a small unit. Usually, the deposit required is much greater.
     
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  16. jaybean

    jaybean Well-Known Member

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    I doubt it with mine. It's about 100 years old give or take, it's done settling:)

    In the 6 years I've owned it I haven't seen any emergency increases, it's been pretty static.
     
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  17. Keentogetstarted

    Keentogetstarted Member

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    Building is brick style 3 level, froms 80's? Looks similar era to many others in the area. Outlook is mostly of the neibouring building, but far enough away not to be too confronting.
     
  18. Keentogetstarted

    Keentogetstarted Member

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    Thanks for the advice! Next step will be seeing a broker to get an idea of deposit required for these smaller units. Have a comfortable 20% at this stage but may need more.
     
  19. aussieB

    aussieB Well-Known Member

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    And for the love of God, please, please dont get a pre approval - it means ****.
     
  20. JDP1

    JDP1 Well-Known Member

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    Then you are lucky given the age.
    Body corporate are experts in maximising their revenue .