Why I think (good) apartments are poised for enormous growth

I cant see the problem with buying a nice apartment. Now is the time. They are mainly a lifestyle choice.

 

This is well located for attracting good tenants, Since it was listed have been getting constant phone calls from desperate people offering $300 dollars a week for a unit. These could give you $600 a week or you could live in one rent the other and still have $200 a week to put in your pocket or grow by putting in shares. It sold for 280k just need a lick of paint a little bit of carpet and perhaps cheap Bunnings kitchen and a cupboard. Not shiny and new so people would rather spend their life whinning or paying off a 600k shiny and new liability and a reno and the revenue from this should give you fast CG and if it doesnt it doesnt matter a stuff because you can leverage into something that does. 1&2/905 Fourteenth Street, MILDURA VIC 3500 | Real Estate Burns & Co Mildura (burnsandco.com.au)

 

I get weak at the knees when I look at apartments in that building. God I wish I had the money for it.

9/2-4 Carrington Avenue, Strathfield NSW 2135 | Domain

There is no universe where that doesn't go up strongly over time. This is exactly what my post is all about. Every inch of that apartment is STUNNING and I bet it sells for dirt cheap cause everyone is writing off apartments. IMO stuff like this is the biggest hidden gem of 2021.

 

Everyone likely has a different opinion of what makes for a "good" apartment, that is part of what holds them back.

Example, we hold an apartment on the top floor north corner, views and private (compared to some that have others looking in at them), everyone that ever looked at ot tried to compare it to the cheapest in the same complex (from a rental and buying perspective) even when the lower levels we're on the south side facing the main road with other units looking in on them !

Until our population/immigration ramps up again apartments won't take off

It hasn't been a good investment
It will one day appeal to an owner occupier (if we don't downsize to it).

 

For what it's worth, a friend recently had their body corporate increase 25% this year alone. They are now paying $4500 pa on a 1.5 bed apartment in Melbourne.

At interest rates of 2%, they are effectively paying interest on $225k and this amount will only increase over time.

You would definitely want to be filtering out apartments with medium to high body corp fees

 

Northern Beaches apartments are moving fast

 

Imo a balcony is a must have though. So that's why the one you originally linked was good. It also looked like it had big spaces.

 

But you have to factor in building repairs (e.g. painting every 10yrs or so, roof replacement, hot water systems), higher rates and higher insurance costs for a house which add up to. This close much of the gap in costs.

 

One day we'll have international travel, people working in offices and even people living in apartments.

 

Body Corp doesn't cover hot water repairs, air conditioning or painting or repairs internal to a property.

Just saying factor it in. Lifts are expensive when they need to be fixed/replaced

If

 

Sure, but my point is there a lot of extra costs to owning a house which need to be factored in too and could easily add to the equivalent of body Corp fees. External painting (might be $12-20k for a Queenslander), fences, gutters, maintaining landscape/gardens, etc. Then rates and insurance are higher on top. If you add up over the long terms they probably get close to evening out unless it’s a complex with lots of luxuries.

 

Sounds like you’re poised for enormous loss or capital cost at least

 

From the latest Corelogic report

“Despite the underperformance, unit markets have turned a corner, with Sydney recording two consecutive months of rising values, while the Melbourne unit market has seen values consistently rising since October last year, with the trend accelerating over recent months.”

 

Units are different to apartments though.

 

I don't think anyone really tracks them separately though, so it's hard to get good data.

 

I’ve got something I bought 2019, $412k @ spent $30k ish. Now worth $580k and climbing.


Possible but not the normal.

 

There’s where it creates such an amazing opportunity for me & you to make value out of the two. That’s what makes real estate so interesting. And that what makes it even better from the ones that say house’s are better than units

 

this is preposterous ..... it will never happen.

If ppl were meant to fly they would have wings. If ppl were meant to commute they would have wheels instead of legs. If we were supposed to work 8 hours on a chair in vertical offices we would have shiny pink bums (babboon?) and long arms to swing up and down the vertical world.

Utter nonsense. What planet are you on?

 

Sorry unit or apartment?

I actually bought a unit in Dec as it was close to our main house. Got it for $1.3m then agent said can sell $1.55-$1.6m now. So unit is defn normal.

 

I cant remember the name of the planet due to the fact that we all have very short memories.