Hi
im thinking of purchasing a one bedroom aparment in melbourne on lonsdale st. Its about 20 sqm. The real estate agent (my friend) reckons hes got a lease for a year of $300pw (yet to be confirmed). The apartment is a private sale selling at $192 000. Im just wondering on everyones opinion on whether the price and rental is a good investment for the location.
any reply is most welcome
cheersTough to finance something that small. Affects the resale value.
Give me a call and we can have a chat about some issues.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Xquis,
I would be very concerned if you were buying a unit that small as an investment. Lenders have a great aversion to financing such small places and therefore you would be using more of your cash and/or equity as a deposit than is typically required.
Because of this you could well experience difficulties selling the property later on if ever that was an option/need. Such difficulties tend to restrict growth potential as savvy investors tend to steer clear of such property.
For me you are better off investing in something a little more standard and something that is bigger than 50 sqm.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek said it all
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi,
20 square metres seems very small — one room at best. I doubt if this is a livable space[blink]. Have you got the measurements right??[ohno]
$300 per week for 20 square metres — the figures don’t add up right.Maybe you were given the dimensions in squares (different from square metres).
Go back to square one (no pun intended[biggrin]) and reconfirm with the agent all figures provided.
Regards,
Helen20sqm on lonsdale? sound like a student accom, studio apartment. lettin at 300 is not realistic even fully furnished. I live in the city so i kinda know these market well. The location is good but the size and price look funny.
Hehe dun think u can get 20 square one bedroom for under 200k, so must be square metre.
cheer
yuyu
20 sqm is possible… my first place is 30m². Studio apartment, $165k, currently renting at $185 pw, furnished. There is another studio in the same building currently up for rent, asking $240pw (although it’s probably renovated, and has a car space). This is in Artarmon, (lower north shore, NSW).
Purchase price sounds about right, rental sounds a bit high – have you done a domain.com.au search or something to get some comparison rental prices?
It is hard to get finance for such a small place (as people have said, below the magic 50m²), you’ll need the full 20% deposit for starters, since no lender’s mortgage insurer will touch it.
Hi Yuyu,
your post:
dun think u can get 20 square one bedroom for under 200k, so must be square metre.It was not my intention to suggest a one bedroom apartment would be 20 squares. I was just querying whether Xquis8 had been given the figures in square metres or metres.[blink]
Looking at the initial post again — $192K for 20 square metres — extrapolates to approx $400K for 40 squares metres; $600K for 60 square metres.
In my opinion the apartment on Lonsdale street seems very expensive. When you consider its limited use (student accommodation only), the red flags start appearing. I think there are better investments out there — but then again, that’s my opinion only.[blush2]
Regards,
HelenRegards,
HelenHi Xquis8
Since you said any reply is most welcome . . . . I’ve gotta say the property sounds like a garage, don’t do it.
I’d rather own half a good quality property, than all of a bad one, if ’twere my money. Don’t dodge debt, dodge bad investment.Quality properties seem to be the only ones appreciating all the time.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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1 bedroom, 1 bathroom 42 square metres.
Would I have troubles getting finance?
Brizza
St George will do small places – from memory, anything over 25 sqm.
I have heard of someone with a 12 sqm ‘place’ in Sydney. The person paid cash for it 10 years ago and it hasn’t gone up and they couldn’t find a buyer.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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