VIC Why did this apartment sell for 130k more?

Discussion in 'Property Analysis' started by Moogle, 14th Sep, 2017.

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  1. Moogle

    Moogle Member

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    Complete newbie here. My husband and I intend on buying our first home when we return home from the US in 18 months. So, I have recently started the property research/learning process.

    I was watching two apartments in Prahran (one of our desired areas), and was surprised to see that one sold for 130k more than the other.

    They both have; 2,1,1 configurations, are in art deco buildings, have separate kitchens, wooden floors, light, privacy, are somewhat modernized and are walking distance from shops/transport.

    One is a little bigger and in a different part of the suburb but could that really add 130k? Could strata costs influence this big a jump?

    I’m clearly missing some pieces of the value puzzle as I thought these apartments would go for a similar price. What is this newbie missing?

    Irving Ave (845k)
    2/8 Irving Avenue, Prahran, Vic 3181 - Property Details

    Athol St (715k)
    2/2 Athol Street, Prahran, Vic 3181 - Property Details

    I would really appreciate any help or advice. Thanks
     
  2. luckyone

    luckyone Well-Known Member

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    The second bedroom is bigger in the first one and the kitchen is much nicer. Maybe that's it? Also, one might be on a nicer street than the other.
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Part of it is "luck on the day" (for seller and buyers alike).

    Other factors could be:
    - condition of the building (repairs/maintenance outstanding)
    - cost of maintenance (reflected in owners corp)

    The Y-man
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    Actually, having has a better look, it appears the Irvine one is much bigger.

    The Y-man
     
  5. Ouchmyknees

    Ouchmyknees Well-Known Member

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    The second one's second bedroom is a study, it is too small.

    I wouldn't touch any of these two, neither of them have a bathtub or balcony, which will negatively affect the value if you want to sell down the track.

    The one on Athol st is at a better location I think, closer to St Kilda road (hence tram 6 & 72) and the train station.

    I agree 130k is a very big difference, maybe there is a body corporate special levy?
     
  6. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Prahran is red hot for Airbnb, I wouldn't be very surprised if you ended up buying an apartment and found out the neighbouring properties are all Airbnb pods.
     
  7. Moogle

    Moogle Member

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    Hi Everyone,

    Thanks for the advice so far. I'll play closer attention to the kitchen appliances, frequency of the trams on the closet lines and the size of the second bedroom. As we would use the second bedroom as a study, I was focusing more on if it actually has a window than the size of the room. I'll also add bathtub to the "add value"s column in my list.

    Y-man is there a way to find the total floor space (sq m) without calling the agent? They rarely list it in the description and the floor plans are often incomplete (and rarely to scale so I can't fill in the blanks).
     
  8. Moogle

    Moogle Member

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    Thanks for the heads up. We would look to rent it out after 3 years (approximately) and buy a home with a little more space. While annoying in the short term the fact that there is Airbnb demand might work in our favour in the long run?
     
  9. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Hmm on the contrary I'm think in the short run because the demand of airbnb property in the area, you need to compete with Airbnb landlord to snatch up quality properties for higher price. Art Deco ones are very appealing to guests/landlords.

    In the long run, who knows if Stonnington council bans Airbnb in three years' time?
     
  10. Moogle

    Moogle Member

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    Very true. I know AirBnb is facing increasing backlash. Being a little further from the city I didn't think Airbnb would artificially inflate prices considerably but I guess it would anywhere there's demand. Unfortunately most of the areas we are looking at would be in the same boat.

    Maybe I can find a middle ground between new properties (which I was looking to avoid) and older properties with character. Older but plain Jane buildings :).
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    Agent won't know either. You need to do a guesstimate with a print out and ruler unfortunately.

    The Y-man
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Why not just go for a house to start with? Granted you won't be as close to CBD but still.....

    The Y-man
     
  13. MTR

    MTR Well-Known Member

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    Also notice one has a garage the other a carpark bay? but certainly should not make such a massive price difference.

    If the Melb market goes sideways there may be better pickings down the track.
     
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  14. The Y-man

    The Y-man Moderator Staff Member

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    Brilliant pick up! Totally missed it.

    The Y-man
     
  15. Moogle

    Moogle Member

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    Great pick-up, thanks. Hopefully it does go a little sideways. We have 18 moths until we come home, so in the meantime we are going to track the areas we like and hope some better prices start to appear.
     
    MTR likes this.
  16. Moogle

    Moogle Member

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    Budget and walk-ability. We are aiming to stay under 650Kish (200k deposit + 500k mortgage - fees/stamp duty). Ideally we will stay in the apartment much longer, as we prefer the apartment lifestyle, but with a kid coming, we are not sure how viable it will be.

    I don't care if it is not trendy area, but I don't want to own a car (and haven't for 5 years) so it needs to be walking distance from amenities/transport. I'll take a look at what areas we can afford houses in and see if any are walk-able.

    Great! I didn't realize they were to scale (or close to). Thanks
     
  17. Ouchmyknees

    Ouchmyknees Well-Known Member

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    A lot of people raise kids in apartment in different part of the world, it is not a deal breaker. But from a growth perspective, a Prahran apartment probably is not your best bed.
    I have a two-bedder apartment in Prahran sub-650 when I bought it a few years ago when I moved from overseas, the price really hasn't moved much. Had I bought a house in Clayton for the same price, it would have be over 1m now.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Tell me about it! :oops:

    I bought a 1BR in Prahran 2001-ish for $150k.
    It went up to $350k (bank valuation) in 2005.
    I got it revalued in 2015 - it was $320k!!! :eek:

    I also bought a unit in Clayton around the same time as Prahran for $165k (3Br/2Bth).
    It's now over $660k.:cool:

    The Y-man
     
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  19. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Well hopefully the Airbnb boom will help with the CG. Did you Airbnb yours in Prahran?
     
  20. The Y-man

    The Y-man Moderator Staff Member

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    Nah- just bog standard. Might consider it once lease finishes....

    The Y-man
     
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