Rent arbitrage opportunity? Rent in high vacancy CBD, lease my PPOR

Discussion in 'Investment Strategy' started by rizzle, 13th May, 2020.

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  1. rizzle

    rizzle Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    284
    Location:
    Melbourne
    Per the title, I can see vacancies in Docklands Melbourne are increasing rapidly, while it is roughly stable in my PPOR suburb...

    Docklands:
    View attachment 38305

    My PPOR suburb

    View attachment 38306

    Asking rents are already cooling off considerably in Docklands.

    What are some of the risks in renting in Docklands and leasing the PPOR?

    Risks I can think of:
    • Impossible to get a landlord policy for time being - would need to save my own cash 'insurance' buffer
    • Difficulty in finding tenants to rent out a second bedroom in Docklands (I'd rent a 2/2/1 apartment)
    • Difficulty in finding suitable tenants for PPOR
    But benefits:
    • Likely improved serviceability on future loan assessments
    • Comfortable DINK lifestyle in well located and equipped apartment
    • No myki fares
    • 5 minute commute (once office work resumes)
    Mod note: I wasn't 100% sure which topic to post this under.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Additional benefit - you'll be neighbours with @Tony3008
    :D

    The Y-man
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    @rizzle your attachments don't show anything....

    The Y-man
     
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  4. rizzle

    rizzle Well-Known Member

    Joined:
    18th Jun, 2015
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    Location:
    Melbourne

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