Studios - Inner City Sydney

Hi
Interested in people’s thoughts on purely purchasing Studios in Inner City suburbs such as Darlinghurst, Potts Point, Elizabeth Bay etc.

Above 20sqm
Only Strata, not Company title.
Low Levies - Blocks with no pools or lifts.

Ultimate strategy is to replace my income with a positively geared portfolio. Capital growth is not the primary objective.

Anyone have any thoughts or currently doing this?

 

Why not shares then?

Banks have traditionally lent say 70% max for properties under 40sqm. It may be difficult to resell later.

 

I'm interested on timing for a studio or 1 bedroom in the CBD but for owner occupier purposes for a while

 

From your research so far whats the expected purchase price, weekly rent, strata costs and rates?

P.S. Special levies in older buildings can put a serious dent in your cash flow...

 

It's not the worst idea from a cash flow point of view but you can struggle to get finance for small lots. I don't think there will ever be a lack of demand for rental in those areas.

- Andrew

 

Studios are decent for income, but not for growth. Limited downside and limited upside to be fair.

I personally don't like studios and one-bedders, but they can play a role to diversify into income if the rest of your portfolio looks very different.

Lending is difficult in this segment, so target properties over 50 sqm on title - which is not as easy as it sounds.

Happy hunting.

 

I've owned a few studios and found it was great during the early stages of growing a portfolio - lower entry point, decent returns, easy to renovate.

I have heard of investors who solely own high yielding studios, however as my own strategy grew I chose to look for higher growth potential.