Hi All,
I having some savings which I want to invest in property market. My initial thoughts are investing in Unit in Melbourne CBD.
Risk with considering COVID 19
Rental income potential?
Market behaviour UP/DN?
Is it good time or should I wait?
Please let me know what are your thoughts.
No box in the sky plz
Another help me make a life decision but i will give you no information on my current situation
Im going to say dont buy an investment property because if you are stupid enough to not even know the basic info needed to start doing research then i dare say you shouldn't be taking a risky investment like an apartment in the CBD because your likely to get shafted
OP if people knew the answers to your question they would tell you the opposite because they want to get in first.
Doing your own research would be a better place to start. Have a look at the sales data in the types of property you want and the location, are sales increasing or decreasing? Settled prices up or down?
Please let me know what are your thoughts.
Don't.
IMHO, and i'm not a financial advisor by any means, but Australia's economy isn't going great, unemployment is at record levels, rents are dropping and apartments are generally the first to fall in a recession. Maybe there'll be a few bargains in 12 months time but not right now.
If you want to see money disappear overnight buy an apartment else leave it in the bank/gold, yes the return will be average but at least you won't be chucking your money onto a fire.
otherwise YOLO
150/week
Yes
Yes
I own an apartment in Melbourne CBD. Worst property purchase i ever made.
Will happily sell you my apartment if seriously looking.
What is so bad about it?
As I always say to questions about investment, know your end goal or have a goal in mind.
It seems like a new apartment complex is built in Melbourne CBD every week. As such, capital growth on apartment is minimal at best, if any at all (honestly). I helped my brother recently buy an apartment that was 8 years old. I was aware of the purchase price of that apartment from its sale 4 years earlier, so I offered that earlier sale price for the purchase. My brother lives and works in the city with his family, so the decision to purchase was lifestyle, not investment.
Vendor refused and came back with a counter offer $2000 more. I was like 'ehh?'… Turns out that he just wanted to get his money back, so wanted the initial purchase price plus $2000 of renovation he put into the place. In short, he made nothing over that 4 year period.
My apartment has gone up in capital, but only because I've held on to it for the past 20 years. The capital growth though is definitely not worth the hassle as it's minimal given the timeframe (about $40,000 over 20 years). The only reason I keep it is because it's positively geared and no land tax appointed to it, otherwise it has a high owners corporation fee ($5500 per year) and other maintenance issues (for the building) that just suck money out.
A few other apartments I looked at were selling or sold for some $30,000 less than the earlier sale prices, and this was a common trend across a few places (at that time), so not just a one off. This period was prior to GFC and there were no world issues at the time.
I just simply put it down to the creation of Docklands and excess apartments in the general CBD area which deflate the price. Supply vs Demand.
I had no problem renting the apartment, it's just that the actual net income is not worth the time/hassle for it given there's not much return on investment for it. I'm just fortunate that it's postively geared, as if it were negative, then there would be absolutely nothing that would give me a return on this investment.
Might be quite different between Sydney and Melbourne, but I'm currently renting in Sydney CBD and this apartment was sold in 2012 for $675k, now it's valued at roughly $1.1m! Not to mention the $284k rent that we paid over the last 7 years, not a bad investment I think… although strata for this place is about $1800/qtr, so $7200/yr - still, that's really only about $50k for 7 years….
@[Deactivated]: I don't know the Sydney market well enough, but I always felt that their CBD was valued more than Melbourne CBD apartment market. The opening of Docklands just meant there were oodles more apartments within a short distance of Melbourne CBD.
Although you paid that much in rent, it doesn't mean the landlord got it all as profit depending on their mortgage loan etc. But broadly speaking, it could be yes, say a $500,000 debt against the apartment over that time at say 5% interest could still potentially have them having a positive return over the past 7 years (assuming not too many more expenses above the OC).
Please let me know what are your thoughts.
"Should I reply to this post with a serious comment or a smart arse comment..?"
Hi Jeev,
I'd be looking at land, maybe a little further out, but they aren't producing any more of it.
Aidan.
Have you actually done any research of your own?