Forums / Property Investing / General Property / Investing in Carlton Melbourne Victoria

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  • Profile photo of 888LD888LD
    Participant
    @888ld
    Join Date: 2012
    Post Count: 7

    Hello all,

    I am after any opinions on the suburb of Carlton Melbourne Victoria

    I am looking to purchase a solid investment property with strong rental return
    and I have been keeping an eye out on inner city suburbs and believe Carlton
    would be a good place to start.

    Any opinions would be great

    Thank you

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681
    Residex CEO, John Edwards wrote:
    “I’m worried about Victoria. When I look at the Victorian economy, I can’t see anything that’s actually going to do it any good. It’s on the wrong side of the ledger… You’ve now got an overhang of stock of around 70% in Melbourne… something close to 20,000 dwellings, which is enormous. It’s the largest stock overhang of any capital city in Australia”…

    http://youtu.be/1zglKPv0vag

    The Freckle

    Profile photo of momotalomomotalo
    Member
    @momotalo
    Join Date: 2012
    Post Count: 5

    Maybe take a look at North Melbourne.
    Good central location. reasonable rental.  In my opinion under valued at the moment.
    And might have good future growth with the new Melbourne city Council Arden Macaulay Structure plan to boost the density.
    http://www.melbourne.vic.gov.au/getinvolved/StructurePlans/ArdenMacaulay/Pages/ArdenMacaulayStructurePlan.aspx

    Profile photo of Stacey SurveyingStacey Surveying
    Participant
    @stacey-surveying
    Join Date: 2011
    Post Count: 138

    Maybe send a pm to Aaron_C on the forums – he seems to like the inner-city projects so I’m sure can shed some good knowledge on Carlton.

    Cheers

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Carlton has dipped quite a bit in value over the past 12 months I've noticed. Read the back of the latest API magazine and it's something around the 30% mark (????). It could be a ripe time to buy now then if it bounces back up over the next couple of years, but, I have one concern at the moment about property in general. If the recent interest rate cut (and moreso any further ones this year which are predicted) doesn't stimulate property prices upward then what???? Just my 0.2 cents worth.
    I'm actually now thinking over putting money into shares long term (10years plus) in companies with little to no debt and under valued. No body corporate, no rates, no repairs, no vacancies, no landlord insurance/property insurance, etc, each and every year! I still love property and I'm still holding onto what I have but my outlook is much different than what it was 10 years ago.
    Cheers,
    Gats!

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681
    gatsby wrote:
    I'm actually now thinking over putting money into shares long term (10years plus) in companies with little to no debt and under valued. !

    Not sure the share thing is good timing just yet. The AS200 (15 years) below shows just how much of correction you get when things snap. With the sheer amount of QE and LTRO easing happening globally markets are juiced with funny money. Opinion out there suggests this won’t stop anytime soon but if you look at past rounds of QE then the affect on markets is less with each round. Much like a drug addict. The more you take the more you need just to stay normal.

    asx20015

    The question is will things snap again like 07/08 or unwind gradually? I tend to think thinks are more likely to snap then lookout. The idea that stocks are undervalued will go out the window. Everything will go down then you’ll see the better quality shares recover first and fairly quickly as punters get over the initial panic and start to settle down.

    Problem with markets at the moment is that investors have left in droves so volumes are down leaving the algo’s and HFT’s to their own devices. I dabble with small caps because of the upside potential but they are volatile little suckers.

    The main thrust of investing regardless of class is capital preservation first profit/growth second. Timings going to be tricky. I like PM’s and I wish we had inverse ultrashort ETF’s here so I could hedge better. I’m staying largely cash while inflation is low with PM’s as a hedge if things go pear shaped. The rest I push directly into business ventures with concomitant high returns.

    If I was a PI I would do a SWOT analysis on my portfolio and figure out where value is likely to be retained in terms of income and equity preservation. If a crunch comes then theoretically we’re likely to see a low interest rate environment to provide stimulus provided inflation isn’t a problem. The inflation thing’s a big if at the moment. The other thing is tenants capacity to absorb the shock. PI’s should be looking at their areas in terms of how well employment will cope with a down turn. Inner cities could get thumped if they’re largely service based. I don’t think any area will be immune but what would get hit the least?

    The big thing at the moment is that going long now probably isn’t good timing.

    I’ll stay liquid for the time being and when things go bang I’ll come back in when things have near enough bottomed out and we can clearly see some upside potential. It’ll be a crap shoot for a while but hey you can’t take it with you.

    Profile photo of Kristin Simondson PBREKristin Simondson PBRE
    Member
    @kristin-simondson-pbre
    Join Date: 2012
    Post Count: 86

    Carlton is a great suburb for continuous rental return. Due to its close proximity to Melbourne's CBD and it's strong cafe culture, it's a suburb regularly sought out by tenants.

    Working as a property manager in Carlton, I've seen first hand the high demand for good quality properties from professional and secure tenants. Whilst the rental market has slowed over the past 12 months in Melbourne's inner suburbs, all of our properties in Carlton 3053 have leased with a minimum vacancy period (we always allow 3 days between tenancies in the event of any small cleaning or maintenance items to be attended to).

    68.4% of properties in Carlton are rented, with units returning 5.5%-6.8% rental yield annually.
    With new developments such as VIVA Carlton, Local Carlton and LUME Carlton, buying a new or near new property could also be advantageous for claiming depreciation at tax time.

    <moderator: delete advertising>

    As always, you should contact a financial adviser before making any final decisions. Whilst most property investors choose to 'go it alone' when making purchasing decisions due to the cost of consultations, I've seen many a new landlord overlook small costs or outcomes when making a purchase that has landed them in 'hot water'.

    Profile photo of 888LD888LD
    Participant
    @888ld
    Join Date: 2012
    Post Count: 7

    Hi Kristin, I will be purchasing an apartment in Carlton shortly, if you wish to manage it please contact me

    Luke
    0425 080 888

    Kind Regards

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    I read an interesting article recently about Carlton and its very high walkability score, plus my son supports them.. I can understand this type of measurement. So I put my lot in and surprisingly the one that I thought to be the problem child came out with the highest score. Its a keeper then.

    http://www.walkscore.com/

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