VIC Southbank 1 bed Price Assist please

Hello All,
I currently own a small Studio in Melbourne CBD and negotiating to buy into a 1bed in Southbank with Yarra Views. I have always worked in CBD and donot wish move in inner or outer suburbs.
My options are Freshwater Place & Prima Pearl.
Assistance needed on price only: What would you suggest as an appropriate buying price for a 50sqm apartment in a 2-5 year old building with balcony and no car park? I donot own a car and shall never need one as my activities just revolve around the CBD. Considering the oversupply, falling rental prices and upcoming high rises what is a reasonable price for these two buildings?
Appreciate all feedback.
p.s - my current studio shall be leased out to Corporate Keys on a long term lease with guaranteed rental covering my existing mortgage.

 

It seems a bit pointless to me. I would go for a two bedder instead to get more point of difference if you absolutely must buy there

 

If you are going to do it, get a carspace too. It wi'll help at time of resale.

 

Hi Katsu,

I am under the impression that it is not the best time to buy in Southbank, so I won't recommend it. I also believe this will stay the same for the next 5 years at least as there is plenty of development in that area.

The yields of these apartments aren't great and when considering O/C fee's you lose another 20%. If you must, I would say a 2-2 would be a better investment if you can afford it. You can rent out the smaller room either through Air B n B or flatmates and make more cash than a traditional lease. With the new guidelines it will be very hard for developers and architects to design 2-2's under 75sqm, and I understand you can pick up 67sqm 2-2's. This may allow room for more capital appreciation (if there is to be any in the near future). However the guidelines have only just come into effect recently, so this won't play an impact for at least another 3/4 year before the new developments are marketed.

Would you consider rent-vesting as an alternative?

 

Southbank apartments, especially 1 bedders kinda have alarm bells going off right now.

They've built too many and more than a few people are in trouble.

But seeing as you're buying a place to live...as opposed to invest...well that kinda works for you!

Youre basically buying a plentiful asset that no one wants. you're in the box seat.

Get your finance sorted so you're ready to buy at a moment's notice.

Then watch your market like a hawk for the next 6-12 months or so.

You'll be looking for troubled sales....people who need to get out quick. That's where you come along as a knight in shining armour and save the day....

That being said go into this looking for a home. Forget about making any money from it for the next 10 years.

As others have and will say....an older 2 bedder is the more sensible option if possible.

Good luck!

 

appreciate all replies. surely its about having finances sorted and waiting for a vendor who is eager to sell. is 380k the right price for water views?

 

Why would either of those factors make a good investment? If they did, then nearly any property for sale would be investment grade...

 

If you are talking about freshwater place and for a 50sqm apartment it was originally sold for like 400K OTP many years ago. You have to realize people who buy into this place do not do so for investment perspective - it is for lifestyle and prestige factors. the Owners corp if very high and you're looking like 8-10K a year alone.

I have lived in freshwater (it is pretty cool, you have a 2 pools one on the lower level - where back in the day "grant Hackett" used stay there and you could occasionally see him in the pool for a swim or the upper level floor where you basically swimming and watching the yarra river from below. They also have the private cinema. Location perspective is very central opposite crown, less than 3 minute walk to tram stop (free tram zone) and flinders street to the left hand side.

Negatives are there are going to be more apartment towers in southbank (if you dirve off city road - it is really bad). there is also the new hotel/apartment by Crown casino which is going to be build next door and will overshadow the some of the apartments for sure. There will be ongoing noise and lots of roadblocks for construction occurring. if you really wanted an apartment go for the "The Melburnian : St Kilda Road Melbourne : Melbourne's Most Prestigious Address" off st Kilda road, no towers can be build on the back as it is tunnel citylink and the rest are old 3 storey apartment village. It is walking distance to flinders st and opposite is the botanical gardens.