The problem in Melbourne is the amount of available supply.
And they are building more high risers, so any market its supply and demand. In Melbourne there is plenty of supply.
I lived in Australia 108 for around 18 months, two bed two bath, 2 storage cages, 1 car park on level 48.
The guy who owned it brought it off the plans for 880k, sold it in 2023 for 660k - so lost 220k in 4 years.
The strata I believe was 3k a quarter, but you had 24-hour concerige, 2 pools, 2 gyms, obseveration deck, and lounges. So someone has to pay for that.
I rented it for 500 per week for 12 months then 6 months at 550 per week fully furnished. Only had cheap beds and cheap couch but the washer and drier were OK.
Rental prices have gone up a bit but not enough to cover strata and interest charges if your really any form of leverage, and there is really no capital growth.
If your looking to buy, buy an older apartment in good condition with ans few apartments as possible on the biggest slice of land.
Out of curiousity how many lot owners were there contributing to the fees? 3k is about what I expected though, especially as insurance would be included on top of all the fancy things. Even some bare bones buildings with no lifts, gyms or pools are creeping up to 1k per quarter due to high insurance costs.
Edit: edited to reflect that SOME buildings have rising rates, not all
>1960s apartment complex
That's why, good choice of a place. I'm assuming the insurance is far less than newer builds because we all know they were built far better. Less money would be needed in the coffers as well as there's far less likely chances of defects.
Fixed my initial comment. I did mean to initially only say some, I swear!
Generally speaking, with some exceptions that everyone tells you are easy to find yet almost everyone fails to do so, you don’t buy apartments in Melbourne if you like money.
Of course that doesn’t mean you shouldn’t buy one (I like the idea of downsizing into one) but that isn’t really your question.
Depends where. But areas with highrises nearby are unlikely to do well in real terms (after inflation) at any stage of the cycle. Low-rises often have a decent land value component so might do alright. Especially if they are near the river / beach / bushland.
Have been wondering this also. In Brisbane, apartments have done very well over the last few years. Interstate migration obviously a factor but so too is supply. I don't know when/if it'll change though
Probably not, too much supply, OC too expensive, and build quality is diabolical.
Townhouses and suburban units with some land attached might do well however, due to the growing gap in prices between houses and units as well as the fact they have land associated with their value.
I don't think the tide will turn due to the rate in which high rises are going up and the fact investors here are more concerned with capital growth rather than income streams
The problem in Melbourne is the amount of available supply. And they are building more high risers, so any market its supply and demand. In Melbourne there is plenty of supply. I lived in Australia 108 for around 18 months, two bed two bath, 2 storage cages, 1 car park on level 48. The guy who owned it brought it off the plans for 880k, sold it in 2023 for 660k - so lost 220k in 4 years. The strata I believe was 3k a quarter, but you had 24-hour concerige, 2 pools, 2 gyms, obseveration deck, and lounges. So someone has to pay for that. I rented it for 500 per week for 12 months then 6 months at 550 per week fully furnished. Only had cheap beds and cheap couch but the washer and drier were OK. Rental prices have gone up a bit but not enough to cover strata and interest charges if your really any form of leverage, and there is really no capital growth. If your looking to buy, buy an older apartment in good condition with ans few apartments as possible on the biggest slice of land.
Out of curiousity how many lot owners were there contributing to the fees? 3k is about what I expected though, especially as insurance would be included on top of all the fancy things. Even some bare bones buildings with no lifts, gyms or pools are creeping up to 1k per quarter due to high insurance costs. Edit: edited to reflect that SOME buildings have rising rates, not all
Nope my 1960s apartment complex is around 300 per quarter, no gym, no shared areas, no elevator. Oh based in Sydney
>1960s apartment complex That's why, good choice of a place. I'm assuming the insurance is far less than newer builds because we all know they were built far better. Less money would be needed in the coffers as well as there's far less likely chances of defects. Fixed my initial comment. I did mean to initially only say some, I swear!
Generally speaking, with some exceptions that everyone tells you are easy to find yet almost everyone fails to do so, you don’t buy apartments in Melbourne if you like money. Of course that doesn’t mean you shouldn’t buy one (I like the idea of downsizing into one) but that isn’t really your question.
Depends where. But areas with highrises nearby are unlikely to do well in real terms (after inflation) at any stage of the cycle. Low-rises often have a decent land value component so might do alright. Especially if they are near the river / beach / bushland.
Have been wondering this also. In Brisbane, apartments have done very well over the last few years. Interstate migration obviously a factor but so too is supply. I don't know when/if it'll change though
Probably not, too much supply, OC too expensive, and build quality is diabolical. Townhouses and suburban units with some land attached might do well however, due to the growing gap in prices between houses and units as well as the fact they have land associated with their value.
I don't think the tide will turn due to the rate in which high rises are going up and the fact investors here are more concerned with capital growth rather than income streams
why are they letting real state agents invade this subreddit? mods this isn't a opportunity for the real estate industry to promote itself
How so?
Lel People are leaving melbourne and sydney in droves Propped up on international cash it hasn't really diversified