Hi, I’ve been a silent member of the forum for a couple of years. I’m a FIFO worker in my early thirties. I made my first investment in late 2017. I bought an old apartment in Thornbury. It is one of 9 and has no amenities. Unfortunately I can’t see much capital growth and I suspect it hasn’t been a great investment. For the past two years I’ve managed to save 90 k and I think I can get 70 k more this year. Conscious that my next property is probably my last shot to start a successful portfolio I’m still debating whether I should invest in Keperra, Brisbane (up to 600k, I’d use a BA) or in a house in Melbourne close to the CBD I can add value too (up to 800k). I’ve found the property below. While it’s pretty unlikely I’ll place an offer as I still have to save up more, I’d like to understand if I’m in the right direction. https://www.realestate.com.au/property-house-vic-port+melbourne- I earn 150 k, pay no accommodation and I’m interested in capital growth. My goal is to buy a property that gives me good capital growth while compromising on cash flow. I’ll then start investing in ETF to compensate the low cash flow.
It's been less than 3 years - what kind of capital growth were you expecting in such a short time-frame?
I’m aware 3 years is not long. What I meant in my post is that I can’t see any potential for capital growth as it is an apartment.
Apartments do experience capital growth though - Thornbury is not too far from the CBD so I would expect it to get some capital growth in the longer term. Could you afford a house the same distance from the CBD? The property you posted the link to above, more like a townhouse as shares a roof with other properties, bathroom separate to the main building, could add value to it I guess (cause it's completely run down as is)
Surprised to hear - especially if it was an old brick apartment that are common in the area. Very early on in our journey we bought a 2BR in THY - paid $150k for a 2BR in a block of 7. The building was beset with issues (big ground movement etc) and we offloaded in a quick sale, but still got $270k for it in 2008. The people who bought off us sold it 2 years later (with some nice refurb) for $390k!! Today about $450~500k? It's a huge demand area (unless you bough some dud near Victoria rd....) so I really think the CG will be there even in apartments. The Y-man
Not bad - but not rentable straight away - and that damn bathroom (or should I say asbestos outhouse!!)!!! This would have been a better bet (it was on the market for ages after passing in at auction): https://www.realestate.com.au/sold/property-house-vic-fitzroy+north-132214618 The Y-man
Would not discount bit further out on a bigger block either - keep an open mind. It's a good price range to be looking at, and if I were you, I'd be targeting properties that passed in at auction. The Y-man
