Purchasing an Old Apartment Unit in Melbourne CBD

• 

  smuggler on 23/06/2018 - 23:19

  -1

  apartment unit in the middle of Melbourne CBD

  Why? Just live on the outskirt in a new one.

  • 

    Marcsie on 24/06/2018 - 08:21

    +4

    Location,location and location :)

  • 

    [Deactivated] on 24/06/2018 - 18:31

    +2

    Or just live outside the apartment.

• 

  trustnoone on 23/06/2018 - 23:34

  +4

  Honestly I'd say electrical, many times I go to old apartment blocks and electrical is the worse, lights blowing somehow more then others, certain odd things (also check it has the proper fire alarms, I know some old places remove the electric one and stick a battery one over the top). Also I know its an apartment block but make sure you have no problems with water and plumbing, depending on the type of apartment block theres many times I see water getting in when it rains (especially when no one cleans the gutters of a large apartment building and the rain goes where it was never meant to go). But also I live in a fairly newish apartment building now and I still see piping issues when I go to the car park area (luckily not in my area).

  Obvious one is neighbors, since you're living so close to one another, sometimes bugs as well, a lot of apartment buildings hold many many bugs (these cockroaches) that I see only come out at night.

  I guess also make sure you know how all the shared stuff works, like do you all share trash bins? Do you have to put the bin out yourself? What about a broken pipe or hot water system, who fixes which? Maybe also make sure it has the phone and internet lines?

• 

  dcep on 23/06/2018 - 23:41

  +2

  how much is the strata/bodycorp fee ?

• 

  jason101 on 24/06/2018 - 08:20

  +6

  I'm a big fan of buying older stock, as everyone wants new, there is often great value to be had in older apartments, far better bang for your buck!

  1. Check minutes of previous body corporate meetings for notes about upcoming capital expenditure
  2. Check to see if the sinking fund is appropriately provisioned to cover such costs
  3. Check to see if any special levies are likely to be called (over and above the standard body corporate costs) to cover any up coming works
  4. In addition to water, power and leaking issues also check larger items of capital within the building itself - Lift, Carpark Roller Doors, Building Intercom system. Depending on your level of scrutiny it may be worth reviewing the lift maintenance contract.
  5. Ask if an asbestos register exists and review it - There will be asbestos in an older building, generally if it is limited to the eaves, or linings for electrical switchboards etc I'm not too fussed (although when it has to be replaced and or worked on it is expensive) but you really don't want to be seeing it in internal wall linings etc.

  One thing I have learned (the hard way) through owning a few older apartments is that when you come to renovate them the AMPERAGE available at the switch board (internally) is VERY important. I have been unable to up-spec air conditioning in one of my units as there is insufficient amps available to the board, running new wires back to the external switch board was cost prohibitive. In another unit I could not install the type of oven and cook top I wanted as there was insufficient amperage to the board. Small things, but back then many apartments were wired on the cheap making upgrading to modern appliances difficult or impossible.

  Remember that any problem anywhere in the building is YOUR problem, not just the person it immediately effects. ie. A large crack in a unit 3 levels up = everyone contributes to getting it fixed, a leak on the top floor = everyones problem etc.

• 

  Complimentary on 24/06/2018 - 08:49

  Run for the hills.the strata gonna tear u down.Parking?Visitors parking?Noise?
  Good luck

• 

  mbck on 24/06/2018 - 08:51

  +2

  Old apartments usually have a high body Corp fee as maintenance. Obviously due to needing more repairs. However a well built apartment won't necessarily Mean that.

  Rental income would be good, but capital growth wouldn't be huge.