Where to buy 2-2-1 Apartment in Melbourne for investment?

Good day all,

I am new here, so I hope I am posting in the right place.

I am looking to buy IP in Melbourne. Capital growth is more important than cash flow, though good yield would be a bonus. I am looking to spend 550k-580k including stamp duty and other expenses such as legal and mortgage costs.

Ideally, i would like to buy somewhere simillar to pyrmont or mascot in sydney.

I would really appreciate your input on these as to what locations/streets i should look at. I am planning to come to melb next month, so trying to understand on what areas i should focus.

Thanks,

Omg

 

Forgot to add, for various reasons, I am not interested in buying house at this stage. So looking at units/apartments only. Thanks

 

There is a lot of talk about apartment oversupply or glut coming. Though there has been huge population growth which some argue will absorb this glut. That said if I was looking for an apartment in that price range I would be looking at an older style apartment in Elwood or St Kilda even if it meant i was buying a big one Bedroom. My reason being is they are typically better proportioned and are less likely to be effected by any glut. Well positioned ones will continue to do well.

 

Thank you for your reply Cactus. There are new developments in st kilda, and you can buy 2-1-1 for around 600k. But size wise there are somewhat smallish.

 

I would wait if I were you....there is a huge supply line of apartments coming in 2017/2018....I feel of lot of people may not be able to settle...this includes some premium areas. Sit back and wait...be patient...and you will pick a really nice apartments.

Go for the boutique blocks...that are walk-ups....avoid large high rise complexes...

 

I would buy in these 2 buildings

1.60 siddeley street docklands
2. 283 spring street Melbourne

I have bought And sold many apartments over the last 10 years and these 2 location wise are among the best. Rental wise is good and for Airbnb u would be making quite a bit. Capital growth wise they do grow but not as much as say u buy a block of land in Maidstone reservoir etc

 

Yep what @Cactus said. St Kilda and Elwood is a great little enclave with some very cool little walk up apartments. I would avoid Docklands and central Melbourne like the plague personally. Way over supplied for the next 5 years, too much rental stock. The key, look for something with a balcony and a garage if possible. The more living space the better.

 

If looking to buy new read @sash post I agree with this. If your prepared to buy old re-read my post.

 

With that budget you probably is priced out of Elwood or St kilda I think. You can still get a 2/1/1 maybe, but definitely not a 2/2/1, especially not a bigger one with balcony and close to tram/train.

Look a bit further down the Sandringham line.

Alternatively check out Footscray, 3 stops to the CBD. It has a great market and heaps of restaurants, it is traditionally a blue-collar area but the demographic has changed a lot in the past few years. Heaps of tall apartment blocks being built there at the moment which is a bit worrying.

 

In all honesty all apartments have limited growth prospects unless u are in the high end market. The main and logical reason why any investor will buy is rental return

I don't own there but I can say those spring st and siddeley st will outperform any apartment similar config Melb wise in terms of rental, short term rental etc due to location, views and secondly the sizes are much bigger than the average dogbox apartments which are produced now. Buying in st kilda Elwood is more ppor purchase

 

Lot of junk quality going up in Melbourne, purchase wisely or the building may be subject to very expensive rectification work in the next 10 years (or less!)

 

Yes agree with this. 2-1-1 definitely not 2-2-1

 

Have to disagree with this. Main reason an investor will purchase is for growth, rental return is only an equation to determine if it makes sense to hold. Docklands is a ghost town with a big vacancy rate so i think it will be a while before any growth happens here. But i do agree with you that growth for any apartments in Melbourne is probably a while awY.

 

northcote. good vibe, no high rises (yet) and many boutiques

 

Sorry I mistyped I should have said the main reason why any investor buying apartments as opposed to landed properties in Melbourne is the rental. If I were to buy in docklands and only one building I would buy it would be the rental other than that would just buy houses with decent block sizes

 

I had a quick look at St Kilda and around and I now realize 2-2-1 is very difficult to score in that area. Will be considering 2-1-1 now as well.

Will need to do more preparation about Footscray as well, this suburb pop-ups in discussions on this forum frequently. And on the map it looks all right. Will be spending 3 days on yhe foot in melb next month.

I appreciate everyone's replies!