Should I buy a shoebox in Sydney

Don't do it.. in 1-3 years, not only would you be able to pick up the very same apartment for much less, but if you are cashed up, you would have cut yourself out of other great opportunities to pick up a much nicer property that will be falling out of the sky soon enough.

Even now you have identified right it would be hard to sell.. imagine what it will be like in 12 months.

 

If it's the block I have been looking at the Body corp fees are high at $1200 a quarter for a 20sqm

However if your going to live in it I say go for it, as an IP it's not much good .

Also I would be wary of the area at night walking back from Kings Cross .
But I say go for it because it will go up in price being so close to the city

 

arja, I dont want to give you a baptism of fire, but if roll up to your bank, asking to finace this with a Company Title 20 sqm site for <aaarggghhh, white noise, cant stand the pain!!!!> price then the reaction might be something like:-

 

I'm all for small living and being close to the city but 20m2 and company title scares me a LOT. Maybe if it was one or the other, I may consider it but both.... oof

Any chance its in the top floor so in the future you could potentially build into roof space?

 

Obviously 20sqm is going to have an extremely limited market when it comes time to sell. Potts point may be the bluest of all blue chips, but even that wont be enough to save the arse of a 20sqm.
CG will be next to nothing in the next 10 years.
Dont know about rental yields? but tenantability will be an issue ( very limited pool); will likely have higher quality tenants though.
It appears ( im reading between the lines so may be wrong) that that you want to purchase this for the main reason to NOT keep renting. If thats the case, I would say, renting may be the better option as compared to purchasing this. You would want any RE purchase to do some CG as thats where the significant $$ are made, and this simply wont have it. The other way to get there would be through CF + yields/rents...but seems here that you want to live in it once purchased?

 

A studio sold in our complex in Rushcutters Bay (on the border with Potts Point) for 440k the other week. It was also 23sqm but not company title. I personally wouldn't do it, as much as I enjoy living in the area and get the appeal of not paying rent. I briefly looked into buying a 1 bedder in this area or surrounds last year but couldn't justify the asking prices. It is very expensive regardless of how you look at it.

My PPOR in Canberra (3 bedroom house on 800sqm land) cost the same to buy three years ago as the studio in our complex. Yeah, it's not Rushcutters Bay but the prices in Sydney have just gotten ridiculous and out of proportion to every indicator that you can think of.

 

For a young person especially, 'debt free' will turn out to be very expensive words.