Home' API Magazine : November 2014 Contents NOVEMBER 2014 n APIMAGAZINE.COM.AU n 75
interest there has been in the property and whether the vendor has
received any offers.
JP: I would be asking the selling agent the usual questions:
f What recent comparable sales have you used to price this unit?
f Why are they selling and what terms are important?
f How healthy is the sinking fund for this building and are any
major works/special levies planned that a purchaser needs to
f Is there anything I need to know about pertaining to the unit (non-
working items, problems etc.) as well as obtaining a strata report
before proceeding with any purchase here?
nHOW HAS THE MARKET BEEN PERFORMING IN THIS
SUBURB AND FOR THIS PROPERTY TYPE?
NV: The market has been performing extremely well for this type of
property and the newly opened light rail extension has been a big
draw card. In 2011, I helped some clients secure a similar property
in Dulwich Hill for around $430,000. Today their property would
be worth approximately $600,000. That’s a 30 per cent increase in
JP: The market performance for Dulwich Hill has been very strong in
the past 18 months. With investors now accounting for more than 45
per cent of the financing market here in NSW (Source: RP Data) for
new loans, market sentiment is still high and affordable in suburbs
such as Dulwich Hill.
nWHAT IS THE MARKET OUTLOOK IN THIS SUBURB
AND FOR THIS PROPERTY TYPE?
NV: I’d say long-term, the market outlook for this type of property in
Dulwich Hill is strong. These types of properties are already highly
sought after. As Sydney’s population continues to grow, the proximity
to the CBD, shops and light rail will continue to increase demand for
properties like this.
JP: High demand will continue due to affordability of entry price,
location and proximity to city for workers and residents who want
inner city living but without the price tag of the east or lower
nWHAT SORT OF INVESTOR WOULD THIS PROPERTY
NV: It’s likely to appeal to a wide range of investors looking
particularly for good capital growth prospects. It’s unlikely to appeal
to investors looking for a strong rental return and those looking for
maximum depreciation benefits.
JP: This unit would ideally suit a “set and forget” investor, as it
appears to need no work and could be rented out easily and quickly,
given its position and size.
nAT ITS PRICE POINT/ RANGE, WOULD YOU LOOK
TO TALK TO THE AGENT FURTHER OR WALK AWAY
NV: If I had clients looking for this type of property, I’d be talking
to the agent as long as the price is up to approximately $600,000.
Above this figure, it’s going to be overpriced and I’d look for better
JP: Talk, as it’s an attractive proposition for this area. It’s also
within the affordable range and likely to attract a good stream of
$500,000 - $530,000
Northcote has blossomed over recent decades into a hip, yet laidback,
inner city Melbourne suburb. Only seven kilometres from the CBD,
it’s a multicultural suburb with handy access to public transport and a
buzzing high street full of café culture, supermarkets, restaurants and
boutiques. The property in question is a two-bedroom, one-bathroom
apartment, complete with a small front garden. The ground floor
apartment has been newly refurbished in a simple contemporary
way. It’s also a short walk to all the amenities that the local area of
Northcote has to offer. The listed price range is between $500,000
nWHAT WOULD BE THE APPROXIMATE RENTAL
RETURN PER WEEK?
MD: $400 per week.
AB: We would expect approximate rental return to be in the vicinity
of $400 per week.
nWHAT ARE ITS PROS AS AN INVESTMENT PROPERTY?
MD: The location is great being a short walk to Dennis station and
not far from the shopping on High Street in Northcote. The area’s
also full of parklands with a short distance to the Studley Park Boat
House, Yarra River and bike paths. The terrace and living are north-
facing which is a plus. The heating and cooling in the living area is
always appreciated by tenants.
AB: It’s very well positioned only seven kilometres from the CBD.
It’s situated in a pocket of Northcote that’s highly sought after. The
apartment is in good condition in a development of only 10 and
the bedrooms have good separation from the living areas. It has
an undercover car space on title and a good outdoor area, which
creates more space. The fittings and fixtures are relatively new
which will attract good quality tenants and provide very good tax
nWHAT ARE ITS CONS AS AN INVESTMENT PROPERTY?
MD: The front terrace area has no privacy and is open to the street.
The bedroom sizes are a little too small. We try not to buy any
“As Sydney’s population continues to grow, the
proximity to the CBD, shops and light rail will continue
to increase demand for properties like this.”
Dulwich Hill, NSW and Northcote, Vic n OPEN FOR INSPECTION
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