Hi all, I am looking to invest in a unit or townhouse in SE urban clusters. Primary requirements 1. Newish build 2. 6% gross yield 3. 2x1 or 2x2 - two bedroom 4. <450K 5. Walking distance to station I started with looking at the Clayton area since few weeks but all of a sudden there is a surge in apartment listings around Clayton/Westall station. I am worried about vacancy rates and dodgy building having strata problems. Any local expert who knows what's the deal? Or any other area in the SE corridor that will suit me. I do not want to go past Dandenong.
There's a lot of apartments being built in the Westall area coming on line. Best if you can get a unit with a back yard, and not an apartment. I think you will struggle to find that kind of yield? The Y-man
Wrong call (100%).. Will strongly recommend to reconsider this from investment perspective.. I know SE Melbourne pretty well and have few investments towards that part of the town. Even looking into it purely from yield perspective, it's still not great utilisation of money (facts but sorry)...
@Tillengka Suggest you have a look at something like: 2/44 Hammond Road, Dandenong, Vic 3175 It's not new, but it's amazing what a reno can do. All the problems (if any) will be visible by now, it's a 3 bedder, and has a bit of land as well as undercover parking for 2 cars. 12 min walk to station. The Y-man
Thanks Y-man. How much rent will this fetch? 330-340pw max. Spending similar amount on an apartment in Clayton area can get upto $450pw rent. I agree that having a bit of yard is great but too difficult to find new properties with a yard in this range.
Why SE only? Branching out can help with both yield and gains.. Best sit down with your investment accountant and broker to work out proper strategy before ...
IMHO SE (and Melb in general) residential is a capital gains play area - if you want yield, I think it is better to look elsewhere (prob another city) as per @jazzsidana The Y-man
Hi Have you figured out the strata? 200 oer month will eat away your profit a bit. You should also consider capital gains. Consider 2 scenarios: 6% gross yield plus 2% growth 4% gross yield plus 4% growth. To me, second one emerges out to be a clear long term winner. Regards
+ there is a tax consideration here too. Someone told me CGT is actually very cheap - you get a generous discount and you can get to control to some extent when to pull the trigger. The Y-man
wouldn't buy a unit on Hammond road for 425k ridiculous price for a head over your roof on a drag strip you could turn it into the grand pellazio and still lose money save your money, hold your horses and take a deep.breath consensus is the market is going to tank that's the feeling from my mates who own houses in SE Melbourne and if they think that then you know the sentiment is bad
Probably not the right time to buy anything beyond Noble park. Huge corrections happening in those areas. Its good to wait for couple more months
Hi there 6% yield is pretty steep. I have townhouses in Noble Park for sale they yield 4% right next to the station but 2 bedders. Was going to keep these and decided to put them on market. They are brand new and will settle next month. Cheers Ivan
