Thoughts on buying an apartment in Forest Hill Victoria?

Discussion in 'What to buy' started by Shannon, 15th Jan, 2018.

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  1. Shannon

    Shannon Well-Known Member

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    Shannon, 15th Jan, 2018
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  2. The Y-man

    The Y-man Moderator Staff Member

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    F-Hill is in an oddball area - sort of between major transport routings.

    The yield is so-so - you would get similar returns on a 1BR in inner suburbs (eg our 1BR in Prahran worth about $320k, gets 300pw)


    The Y-man
     
    The Y-man, 15th Jan, 2018
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  3. Shannon

    Shannon Well-Known Member

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    Thanks for that.

    What about capital gains for the properties in that area, and the one I mentioned. Littel worried about making a loss later down the track.
     
    Shannon, 16th Jan, 2018
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  4. The Y-man

    The Y-man Moderator Staff Member

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    Personally I'd be staying clear of those apartments.

    The Y-man
     
    The Y-man, 16th Jan, 2018
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  5. The Y-man

    The Y-man Moderator Staff Member

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    The Y-man, 16th Jan, 2018
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  6. Shannon

    Shannon Well-Known Member

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    Why?
     
    Shannon, 16th Jan, 2018
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  7. Shannon

    Shannon Well-Known Member

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    Shannon, 16th Jan, 2018
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  8. The Y-man

    The Y-man Moderator Staff Member

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    Basically yes.

    In the 18 years we have been investing, our entry level 1BR and 2BR apartments - in inner suburbs like Prahran, North Melbourne, Abbotsford, Fairfield - have not done as well as our 2BR and 3BR villa units in Clayton South, Epping, and Lalor,

    The 3 I posted for you are almost same distance from CBD as F-Hills. Granted the Tulla one has no train, but still has the 902 smart bus (as does F-HIll mind you) - but you would think the renters would be working in the airport and related industries.

    The Y-man
     
    The Y-man, 16th Jan, 2018
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  9. The Y-man

    The Y-man Moderator Staff Member

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    The area is just joining the "apartment craze" - i.e. there is a lot more coming.
    Being "first in" means it will be the "oldest" very quickly.
    Tenants can be very mobile - as soon as there is a newer, shinier one next door, they will move, which means you need to drop rent.

    The projected rent is also quite high for the area - you can rent a 4BR house for $390 pw.
    14 Box Avenue Forest Hill Vic 3131 - House for Rent #422281302 - realestate.com.au

    Granted a house is not for everyone - but to maximise your rental demographic, the more bedrooms the better (family, sharing etc)

    6 Vanbrook Street Forest Hill Vic 3131 - House for Rent #422674098 - realestate.com.au

    The Y-man
     
    The Y-man, 16th Jan, 2018
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  10. Shannon

    Shannon Well-Known Member

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    Yeh, Box Hill has heaps more developments coming (and it’s a better, more expensive area). I think Forest Hill and Nunawading restrictions on high-rise apartments. It isn’t good that there is so many popping up. Unless apartment living becomes the norm soon, it might go down. There seems to be a certain demographic that buys these apartments in Whitehorse, which isn’t a bad thing.

    I’d rather rent those places too! It just seems that apartment blocks gets snapped up quickly by renters (probably because of the shopping centre across the road).

    I think more space is a safer option though...

    Thanks for the response.
     
    Shannon, 16th Jan, 2018
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  11. jazzsidana

    jazzsidana Well-Known Member

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    I personally won't call it a great investment. Better opportunities can be found around Melbourne. Only thing going for it is good rent yield and that in this case comes at cost of capital growth.. Big no from my personal experience ...
     
    jazzsidana, 27th Jan, 2018
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  12. Shannon

    Shannon Well-Known Member

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    Yeh, I was thinking that. The only way it will gain a lot of capital growth is if apartment living becomes the norm. There is another one for 400k that will rent out for 390 a week.
     
    Shannon, 27th Jan, 2018
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  13. jazzsidana

    jazzsidana Well-Known Member

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    Thanks Shannon, you right but this kind will still struggle and if purely looking from rental yield perspective, lot of other areas and states can offer much much better yield along with potential of capital growth and at lower price point.
     
    jazzsidana, 27th Jan, 2018
    #13