I have identified 1 bedroom apartments are available in Burwood VIC for $150,000 or less.
The people living in VIC, could you please advise if it’s worth investing in these apartments?
http://www.realestate.com.au/property-apartment-vic-burwood-…
Is worth purchasing 1 Bedroom Apartment in Burwood VIC?
Ash-Say on 25/07/2016 - 12:13
Last edited 25/07/2016 - 12:22
Last edited 25/07/2016 - 12:22
Comments
Just be mindful that area close to Uni along Burwood Hwy has heaps and heaps of student apartments. And from memory you can only rent them out to students only. Exclusively to students. Don't take my words for it, do your own due diligence.
That sounds correct. When I was looking years ago I found similar in Bundoora, but were for students at RMIT.
At that price, I am guessing it will be restricted to lease out only to students.
I second ykwon10's caution regarding the proximity.
What is the reason they can only rented to students? Never heard government lama about special property for students? I know defense housing scheme but students scheme? Overseas students only? Weird why limiting demands to one market.
To make it easier for people to get a higher education and make the world a better place etc
Also reduces strain on public transport etc etcwhen they were first built it is included in planning permits and this is on title. They are a lot cheaper to build for many reasons including not needing as many car parks (regular developments need 1 carpark for 2 bedrooms and 2 carparks for 3 bedrooms). Also a lot of student accom are studios and smaller then your normal equivalents. Stay away is my recommendation
At that price there HAS to be a massive catch. That is not a normal price for Burwood. "For further details" is where they will give you the bad news that it is strictly student accommodation and/or the place is the size of a shoebox.
My brother and I have something similar to this in Parkville.
In our case, it can only be leased to students. Purchase price was $175,000. Net return is ~$11,000 p.a. (i.e. 6% p.a. return after all expenses).
My advise: It's ok if you are looking for a set/forget IP, but take note that the property doesn't appreciate much, unlike a properties which can be rented out to anyone. We if sold our's now, we would probably get the same price!
Interesting.
Do expenses include repayments on a mortgage?
We purchased it outright, so no it doesn't include mortgage repayments.
but if you buy the adjoining unit for $150,00 later on then you could knock out a wall and remove one kitchen and you have a 2bed,2bath, lounge, dining, kitchen.
for $300,000 in Burwood.
I doubt it would be easy to get that approved.
And it's still limited to student use.
similar like unilodge student accommodation?
If you have to ask here and don't know the area it isn't worth it. If you are going to invest in property with 'a bargain' you need to learn more.
The low price indicates low returns. If there are lots available it also indicates low returns. Sure it might be a good investment, but do more research.
Run away. This is student accommodation. Only students can live in it. Management fee is high. Even if u buy for investment purposes, still it ll be very hard to sell as owner cannot live in it. Market ll be limited to investors only. Also bank will not lend you money if u don't have at least 30% + deposit. No capital growth also.
Thabks everyone. These apartments are off the list now.
How close is it to deconstructed latte hipsters?