Hi,
Is it worth to buy M on Mary in Brisbane? I am thinking a one bedroom + study apartment for $361000 and it will settle in Sep 2007. Will it have capital gain potentially?
Regards,
Daniel
Hi Daniel
One bedroom apartments are limited at the best of times. You really only have the investment market to sell to. Personally I do not buy one bedroom flats ok it got a study. If you want an apartment look at a period older style one. The Capital growth will be far better. Or with land running out look at house and land packages.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Nigel,
Thank you for your reply. I am actually got on hold for the apartment and having the contract tonight. A lot of units are sold already, just want to know if it is a good location to buy for this size and price, and also it will settle in 2 years time, would that be advantage for me to wait for the captial grow? I intented to keep this property for about 10 years time for buy and hold strategy. Is it a good idea? Please advise.
Regards,
Daniel
1 bedroom apartments are hard to sell (relatively) because they have a limited market. For this reason you get low capital growth.
If you were to look me in the eye and ask “Surrey would you recommend buying this unit?” I would respond “No. I wouldn’t even have looked at it based on my criteria for an investment.”
The reason being that at $360k you can get house + land or a 2 bedroom apartment / townhouse. Anything with land is good. Apartments with 2 bedrooms have greater appeal as both investors and first home buyers will have a look. Also, settling in 2 years means you don’t know what’s going to happen to the market over such a long time and it’s land that apreciates, not the chattels so you’d be hoping the development looks really good. The developer will also tend to whack a premium on the OTP unit and sell it with 2 years to completion and it will go up in value (that’s what they say anyway). Look around the same area. Can you find a similar apartment already constructed selling for the same or less?
That’s my advice. For that money you can get much better investments, particularly if you are looking to keep it for 10 years (buy a house with a stack of land as the apartment will look worse for wear after 10 years).
I just did a quick search of apartments in Brisbane between $300k and $400k and found many 2 bedroom apartments, even 1 on Mary street, asking less than $360k and some offering ensuite, gym, pool and so on. I would say M on Mary is over priced. Why pay $60k more for an apartment with 1 less bedroom and you have to wait 2 years to rent it out or live in it?
I agree with Surrey
If you can get out of the contract get out. Not all properties can be positive vcashflow. However if capital growth is important then buy something that will give you the highest possible capital growth. If you buy a property for $200,000 and one increases by 5% and the other increases by 10% the diffence works out to be around $41,000 per year for the 20 year period. If you are buying for growth you must look at where you are going to get the highest return. Its not a one bedroom flat
If you want cashflow look at New Zealand
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I am positive about Bris but this one appears too high price for me. Look at the websites for city appartments. You could get e two bedder in Aurora for less.
Goodluck.
hrm
Thank you for all reply, I am new and want to get into the property investment in Brisbane. However, I am not sure what type of property I am looking for, I can see the protential grow in the Brisbane CBD and therefore I was looking into the M on Mary one. Since I don’t have any positive reply for the particular unit, I guess I should give it up now.
I got another question I don’t have enough knowledge to work out yet. Let say if I buy the new apartment for 360000 and compare it with the 5 years old house and land package for the same price. If I just want to pay for the interest only, which one do I need to tip in more? I don’t relly think I can get any positive cashflow nowaday for a property like this. Please advise me what would be the best option for my first investment property, I understand it will be very important for me and affect the investment in the future. Any advise would be helpful and aprreciated. Thank you.
Regards,
Daniel
Originally posted by danielwpc:Hi,
Is it worth to buy M on Mary in Brisbane? I am thinking a one bedroom + study apartment for $361000 and it will settle in Sep 2007. Will it have capital gain potentially?
Regards,
Daniel
Hi Daniel,
That’s way too expensive for a 1 bedder + study.
How many sqm is the unit?
You could buy, *right now*, a 2 bedroom, 2 bathroom and possibly 1 carpark just up the road on the same street at River Park Central for < $360k.
I’m not advocating buying any particular property, but I’d rather buy now than wait another 2-3 years and hope for capital growth.
— MJ.
If you are looking for a long term investment and you want capital growth you will not get positive cashflow. You would be better off with a house and land package in Brisbane or a period property which is always good for capital growth
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Originally posted by surreyhughes19905:
1 bedroom apartments are hard to sell (relatively) because they have a limited market. For this reason you get low capital growth.If you were to look me in the eye and ask “Surrey would you recommend buying this unit?” I would respond “No. I wouldn’t even have looked at it based on my criteria for an investment.”
The reason being that at $360k you can get house + land or a 2 bedroom apartment / townhouse. Anything with land is good. Apartments with 2 bedrooms have greater appeal as both investors and first home buyers will have a look. Also, settling in 2 years means you don’t know what’s going to happen to the market over such a long time and it’s land that apreciates, not the chattels so you’d be hoping the development looks really good. The developer will also tend to whack a premium on the OTP unit and sell it with 2 years to completion and it will go up in value (that’s what they say anyway). Look around the same area. Can you find a similar apartment already constructed selling for the same or less?
That’s my advice. For that money you can get much better investments, particularly if you are looking to keep it for 10 years (buy a house with a stack of land as the apartment will look worse for wear after 10 years).
Hi Daniel
Congrats on your enthusiasm to get into IP’s. You’ve already had a host of great people reply in the negative, and I have to add my voice to theirs. As this is your first IP, I suggest you need a “cooling off period” to do some more rigorous due diligence.
The main reason I wouldn’t buy a 1br unit is it rarely (if ever!!) passes the “Rental Reality” test professional property developers use to inform their purchases.
Start your due diligence by going to http://www.navra.com.au , click “Articles” in the dropdown menu and read every article there. Going to his next Brisbane seminar is strongly recommended, as well (very affordable)
Also, go to http://www.somersoft.com.au enrol as a member, click on the “Search” function in the homepage, type in “Steve Navra” and read all his posts.
It’s a fun, rewarding journey. And remember, you’ve got all the time in the world to buy properties. Take your time, chill out, and READ.[biggrin][biggrin][cigar]
Cheers
GregHi All,
Thank you for all advises and they made me have a clear mind for what to invest and where to start. Thank you all.
Regards,
Daniel
You must be logged in to reply to this topic. If you don't have an account, you can register here.
