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Sell or keep an apartment in Teneriffe?

Discussion in 'General Property Chat' started by wylie, 12th Aug, 2016.

  1. wylie

    wylie Moderator Staff Member

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    My niece is coming to visit Sunday. She and her husband sold a unit in New Farm to buy a very nice, quirky design (but only two bedroom - not large) apartment in one of the wool stores (I think) in Tenerife.

    They are wondering whether to sell and buy a house to cater for a future family or to keep the apartment to rent, and either renting somewhere themselves or buy a house to renovate and climb the ladder that way to end up with a house that will suit children.

    They have about $75k in equity and the shortfall would be about $200 per week maximum on current rent appraisal.

    They know they could sell and use the equity as a house deposit, but also know they could pull out the equity (keeping it quite separate from the deductible loan) and use the equity as a deposit.

    Any thoughts on the growth potential for one of these apartments if they hold?
     
    Last edited: 12th Aug, 2016
  2. Ed Barton

    Ed Barton Well-Known Member

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    An apartment in wool stores is not a townhouse. I've been a guest in some, and the conversion was crap - you could hear the neighbours burping.

    There is an absolute shed load of apartments/units/flats built, and being built in the area. The saving grace may be that most of the construction is in Newstead and the wool stores are in Teneriffe. Not sure how much of a difference that would make.
     
  3. wylie

    wylie Moderator Staff Member

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    Sorry Ed... I called it a townhouse in the very last sentence, but acknowledge it is indeed an apartment. I've changed my last sentence so I don't confuse anyone.
     
  4. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Hi Wylie

    I've owned units in the woolstores, and as the founding franchisee of Ray White New Farm sold more of them than I can remember. in saying that there are woolstores, and there are woolstores - a couple of them I avoided and @Ed Barton s comment about noise is very relevant in some buildings but not all. Do you know which building it is in ?
     
  5. wylie

    wylie Moderator Staff Member

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    They are in W4 (opposite the ferry).
     
  6. headsonbeds

    headsonbeds Well-Known Member

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    Thought I recognised that gavel. You be calling the next Block. Go Mr C
     
  7. Bran

    Bran Well-Known Member

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    I thought a Mr L was the principal of New Farm. He doesn't have 30 years of experience. Maybe the founder is different?
     
  8. dabbler

    dabbler Well-Known Member

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    You only have to see the prior sentiment here and euros new post re apartments to conclude if keeping it, would have to be for some time.

    It would depend on what could be had now for it, how easy it is to keep if holding long term, and how different this would be to options of cheap new units that may be coming on market if there is a pile of people not able to settle.
     
  9. wylie

    wylie Moderator Staff Member

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    I do wonder if the scarcity factor comes into with the wool stores. They are unique insofar as there is a limited number of them. I know there are lots of other apartments, and plenty more in Brisbane generally and there is a concern about oversupply and the knock-on consequences of that in rental and sales prices of older apartments, but I'd love to hear back from you @30yrAgent to see what you think about the point of difference and whether that makes a difference in holding or not.
     
  10. BB5

    BB5 Well-Known Member

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    The woolstores are unique and will be still looking great in many years unlike the new high rises in Newstead. I wouldn't sell personally.

    On a separate note, how much is Albion changing? The trendy coffee shops have arrived and the industry starting to move out. Will be the next Teneriffe/newstead for me.
     
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  11. Bran

    Bran Well-Known Member

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    I'd sell. You don't want to contemplating this decision in 1-2 years time.
     
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  12. vbplease

    vbplease Well-Known Member

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    definitely sell.. $200/week = $10k/year. A lot of money to lose each year waiting for demand to equilibriate with supply. Imo, the best time to sell was 12-18months ago, the next best time is either now or in 10+ years.. That could be lot of $ lost in 10 years.. There's also the non deductible interest it could be offsetting over 10 years?
     
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  13. See Change

    See Change Timing Lord Premium Member

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    We've got a unit in Teneriffe . Rents well with good return .

    If I was going to sell , I'd agree with Bran and sell now as there is more supply coming especially towards Newstead and around the Gasworks , but we've decided to keep it long term .BUT its only a small percentage of our portfolio .

    Also agree that the Woolstores are more unique which is in favour of keeping , But we're not factoring in significant capital gain in the near term .

    Cliff
     
  14. Whitecat

    Whitecat Well-Known Member

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    I know these apartments pretty well.
    @Ed Barton Newstead and teneriife may as well be one and the same.

    @BB5 albion is not on the river and the developer paid someone to burn down the historic building there (with the support of council to do a night time demolition of the relatively unscathed outcome). So nothing happening in Albion to make it aesthetically like Tenneriffe. However it will be a nice little hub nonetheless but doesn't have trees, water nor historic buildings. Just big square towers of apartments missing windows. But it will become more bustley and a bit more of a scene. Good location for cbd focussed people Missing the 'village'feel a bit though.

    Anyway back to the woolstores @wylie . They are different to the square homogeneous towers going up in Newstead. That point of difference will always hold. Classier. But some of them are just weird. In fact most. They crammed in too many and they have strange angles.to them in all directions. Lots of triangular recesses/corners etc. Not many feel spacious. Many are dark. Most have windows on one face only. I've never really understood the value in the different ones I've seen. I've always seen them as overpriced. Also maintenance can be an issue with the atrium parts letting in water and rotting the timber. Some are up for big bills in my assessment and the bc is already too high The 1990s(?) railings etc are on their way out. As the 30 year agent points out the are different buildings though I haven't seen all.
    Also check flooding I don't know what the scenario is with flooding there

    I also note that residents of one of the wool stores are trying to block off access to the river which they promised council they would allow. I'm wondering whether or not they're trying to privatise this space a bit given that this thousands and thousands of new apts about 100 metres away. they may be trying to minimise foot traffic. New Farm Park is going to become incredibly busy as in the Newstead part they haven't really allowed for nice open undominated public space areas considering the amount of apartments going up

    I would suggest get out now. I can't see growth for a long time.

    My 2c. No agenda.
     
  15. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Close but no cigar ;) But i've known him since he was still at school and then trained him when he joined the ranks. I'm Mr L, sold it to Mrs T who owner it briefly and then she sold it to Mr C :)
     
  16. Agent30yrs.

    Agent30yrs. Well-Known Member

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    I had opened South Brisbane in 1984 with partners, then I opened New Farm in 1990 as a new business, sold it (sales business only) to Mrs T in 2000, who briefly owned it and sold it to Mr C, who sold it to Mr L !
     
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  17. wylie

    wylie Moderator Staff Member

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    Is that the Mrs T who used to run another office starting with C?

    ... and @30yrAgent... I'd love to hear your thoughts now you know which building we are discussing.
     
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  18. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Good building. Donovan Hill design - I'd hang on to it.
     
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  19. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Yup. you got it . Your well informed !
     
  20. Agent30yrs.

    Agent30yrs. Well-Known Member

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    On the other side of the coin, the woolstores are a rarity - they cant make any more. The more cookie cutter apartments there are, the rarer they become.