Does anyone think that an apartment in Travancore is a good investment, if apartment is held for 10 years. an example will be 2401/18 MT ALEXANDER ROAD, Travancore VIC 3032 - Apartment For Sale | Domain body corporate fee is nearly 6000 a year and rental income is about 390 per week. Will a high rise building be an issue, not much confidence in high risers after mascot tower cracks, also how to check if building has fire proof cladding.
From the statement of information: "The estate agent or agent's representative reasonably believes that fewer than three comparable properties have been recently sold within 5 kilometres of the property for sale in the last 18 months.". I find this hard to believe.
I didn't even click on the link $6,000 in body corporate, plus rates and insurance takes your outgoings to nearly 50% of the income
This would be a terrible investment. It's not the poor location or the awful layout. Nor is it the risk of mascot-type cracks. Nor is it the high body corp fees. It's that fact that it is a high-rise. Buy land. Buy something that has a scarcity factor and something with upside potential. I know from your question that you have not yet done enough research.
If you have any doubts - don't do it!!! With your numbers, you are going to be negative cashflow rent: $18252 per year net of pm fees interest on 80% loan @5% = $12,252 OC: $6,000 LL insurance: $650~ish(?) Land tax - N/A OC sinking fund: allow for $5,000 per year Note: *terrible* floor plan! Neither bedroom has windows The Y-man
Bedroom 1 has two sliding door as opposed to, like, a proper door? Internal space looks to be about 40 sqm? You put a sofa in that kitchen / living / family and where are you going to eat? Where can you put a TV?
In all honesty, for the same price and same number of bedrooms, I'd go for:: 4/16 Caroline Street, Thomastown, Vic 3074 The Y-man
This high rise was actually highlighted by the property couch guys in a live session as an example of a terrible investment. Have a look at the price history, Last sold $540k in Feb 2013 before the recent Melbourne boom! Lots of others in the same complex with similar bad results were highlighted and there are currently more than a dozen others for sale. Unless you think all the value has dropped out and now it is a bargain and things have changed. I’d suggest not & keep looking. Suggest you look for an older style apartment (if that’s your target) with low/no BC fees and better land value. No pools/ lifts etc. If you’re keen on the area (no suggestion here) try something more like https://www.realestate.com.au/property/unit-5-49-flemington-st-travancore-vic-3032 Note not a recommendation! This example has doubled over last 15 years (not great) since it’s last sale but is better than dropping by over 50% in a complex with hundreds of others. Please keep looking & lots more research! Good luck.
