VIC Travancore apartment

Discussion in 'Property Analysis' started by Jebra, 11th Aug, 2019.

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  1. Jebra

    Jebra Member

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    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.
     
  2. Tony3008

    Tony3008 Well-Known Member

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    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.
     
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  3. Stoffo

    Stoffo Well-Known Member

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    I didn't even click on the link :confused:
    $6,000 in body corporate, plus rates and insurance takes your outgoings to nearly 50% of the income :eek:
     
  4. Jebra

    Jebra Member

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    Yes, i did not add the rates and insurance. Do you have to pay land tax on apartments?
     
  5. Takingcareofbusiness

    Takingcareofbusiness Member

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    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.
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    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
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Maybe because no one wants them? :eek:

    The Y-man
     
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  8. Trainee

    Trainee Well-Known Member

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    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?
     
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  9. The Y-man

    The Y-man Moderator Staff Member

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    Jebra likes this.
  10. The Y-man

    The Y-man Moderator Staff Member

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  11. Jebra

    Jebra Member

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    Thanks for your opinion guys, it is invaluable for new investors like me.
     
  12. craigc

    craigc Well-Known Member

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    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.
     
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  13. TMNT

    TMNT Well-Known Member

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    [​IMG]

    I think pentrdige gym is bigger than that
     
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