Studio Apartment Living

Hey all,

Am looking to live back in Sydney CBD (or there abouts). With my borrowing capacity shot to hell, I have been thinking or purchasing a studio apartment. Am craving having my own place, though it has to make some financial sense - would have laughed at even thinking of a studio apartment a year ago.

Looking at older style which I can work my 'small space' magic on. Does anybody own and/or live in one? What are your thoughts?

Cost will be ~$400,000. ~$500/qtr starta + ~$300/qtr water and council fees.

Am thinking of keeping it as an 'investment' property whilst living in it, depreciating the
loss. Either way I will be paying rent of $300-350/week regardless where I live, and my total expenses on a place like this will be $500/week. So depreciating $150-200/week for my own place seems reasonable.

Please pass on some feedback (good or bad). Thanks.

 

This is a good place. Well run block. Strataed in 1997. No surprises. Expected sell price to be high 3's or maybe early 4's. It is being auctioned on Wednesday night. I've seen the inside. For a studio, honestly its a good functional space. Quiet area. I recommend it. And no, I'm not the vendor.

12/145 Abercrombie Street Darlington NSW 2008 http://www.realestate.com.au/property-apartment-nsw-darlington-120750769

 

It's 1 of 5 I have my eye on atm. It is one of the more idea layouts. Hate having to walk through a bedroom to get to the bathroom...

The idea only came up today, had a friend offer to sell me their apartment in Kensington, I believe their place is a expensive, however the idea sits well with me. Would be good to have a place to call my own, and I really don't want to live in any of my places out west.

That said, unlikely to buy immediately as I'm still building 2 granny flats atm.

 

I know this is a bit of a tangent, but why not rent?

Sydney market is in one of the best positions for a while for rent vs buy.

We are renting for less than the 3% of the property value, the landlord pays the $3000 a quarter strata, land tax and rates but we get to use the great gym, pool, BBQ etc.

And at the same time we can maximise our investing capacity by not having a crippling PPOR mortgage.

We can also move at the drop of a hat should we find a place with a better view

We took a 1br and I think 1br to rent will be cheaper than a studio to own. It's not very Aussie Dreamish I know but it's optimal for us

 

How are you going to work it as an Investment property while living in it?

how do you claim depreciation on a place that is not for rent? If you are living in it, it is. It an income producing asset, therefore NOT an investment property.

 

Cool NHG. There are good layouts and bad layouts - the layout makes such a difference to livability. I will follow this apartment anyway, and I hope it can achieve in the 4's. But who knows. Maybe there is no interest, and it will sell in the 3's?

Anyway, whatever you decide, and whatever happens, good luck. There's no rush to get into the Sydney market now anyway.

 

$3000 a quarter for Strata?? That's nuts.
I would only rent that too.

 

Hehe... yeah actually, good question there....

 

Yes, my thoughts as well.
My understanding is that if it aint income producing, not much you can do with depreciation etc.

 

Leave that part to me. Throwing ideas around atm, am more interested if anyone has done similar and regreted it.

 

Well anyone that has been caught has obviously regretted it. Like those that have had to pay back the first home owners grant because they defrauded the govt.
I prefer it invest legally. Then I can sleep at night. But each to their own.

 

Just rent. Buying a studio in the sydney CBD at the peak of market isnt wise investment in anyones books

Shame it has no cooktop or oven... guess they assume you will eat out every night

 

Cycle of the market is another thing...

Rent for another 2 years... *sigh*

 

I'm a bit confused. I thought you were flying high based on your posts on SS.

 

Well, yeah, that's a drawback... I know others use a portable cooktop. Otherwise you could install an oven and cooktop but then you run into the problem of finding a space to put the fridge. You can eat out fairly easily in the area though. Or rely on microwave cookery...

 

No where near. I cut my income (and career) by a significant amount to have more time with family a few years ago now (am really happy I did). The last business didn't go well, and was unable to purchase more property in the mean time (thus why I was building so many granny flats in the mean time). The rest is locked away in equity I can't get to, so what good was the capital growth, rents didn't go up much since I first purchased my properties, they were always positive geared. Thus my buy-reno-hold being too slow argument from a while ago. The one's I've met who are truly doing well have very profitable businesses. Some of which I met off these forums. Many more from day-to-day life.

I apologies if I've given an inacurate picture, I am however quite truthful about my finacial position if you ask, can't learn much if you try and play it cool.

 

Hmm I would be wary of the no kitchen thing. Are there fire regs in place preventing a full kitchen.?
You may not be able to wire in a full stove as there may not be enough power available.
This looks like a motel room not somewhere to actually live

 

Not that I know of. I think it's more a space saving thing.

You could be correct, I don't know. But I do know some apartments use plug in cooktops. Ovens on the other hand, I think they do without.

Despite it being called "Citipoint Darlington", which conjures up images of serviced apartments (in my mind anyway), it is actually a residental unit complex, with normal residental everything.

 

I wonder where the fridge goes?
You are not willing to compromise on proximity to the CBD?
That space for $400K ... poor value IMO

 

I would agree with this. Top of market or just over the peak in the cycle buying is a bit riky [ unless the price is great], as there will be a bit more falls/stagnation, just in line with natural cyclical movements. This will be especially true for stuff like studios, where the stock is plenty and land value is nil or very little.
I cant see studios in Sydney do well at this point in the cycle. If you hold for the next 20 years, yes then will likely post good returns compared to the original purchase price [ but so would have most other property].
Id opt to rent- and renting should also be cheaper so allows savings for something a bit more substantial than a studio. You also might be pleasantly surprised in the next 1-2 yrs that the prices are either the same or might have fallen for certain dwellings...