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HB: This apartment is ideally located on the edge of the city,
which means easy access to restaurants, bars, entertainment
and work places. Corporate companies also feel at ease when
they’re putting their workers into accommodation located close
to or in the city, as they don’t have to worry about supplying
¿ WHAT ARE ITS CONS AS AN INVESTMENT PROPERTY?
TP: I have been told that (a nearby complex) may develop its
whole site in the future, so the view may go. A large proportion
of units are leased in this block which means noise is an issue
and there’s competition between landlords for rentals.
HB: The noise factor with the new building nearby could put
tenants off for at least the next 12 months. Also by having all
those amenities so close, it can attract unsightly behavior. With
that comes noise and disturbance as well.
¿ WHAT ADDITIONAL QUESTIONS WOULD YOU ASK
TP: I’d confirm whether any developments are taking place
nearby. I’d want to see a body corporate status report to make
sure everything is in order. A history of any special levies
repairs etc. would be good. I’d ask if there are any future repairs
or levies to be struck, plus I’d request a building status and
HB: Most agents should be supplying you with a copy of the
title, any relevant encumbrances, information from the body
corporate about special levies being charged and improvements
to the building, and also a rental appraisal. But most importantly,
you want to find out about developments close by that could
affect the price of your apartment, eg. views.
¿ HOW HAS THE MARKET BEEN PERFORMING IN THIS SUBURB
AND FOR THIS PROPERTY TYPE?
TP: This area attracts a lot of investors, both national and
foreign. There are a number of new units about to go to market
through new developments so be discerning when picking a
unit to buy.
HB: For apartments sold in the Darwin city, the median price
(as quoted from the Real Estate Institute of the Northern
Territory) in December 2012 was $495,250. By the end of
December 2013 it had risen to $535,000 and we would expect
the rise to jump dramatically as all the new apartments
¿ WHAT IS THE MARKET OUTLOOK
IN THIS SUBURB AND FOR THIS
TP: Continued sustained growth.
Make note of demand for rentals in
relation to supply in this area. Who are your
tenants – an individual or a company/corporate? These have a
bearing on rents achievable.
HB: Currently there are five brand new buildings for sale in
Darwin city, all with two-bedroom apartments. Additional to
that are around 60 individually owned two-bedroom apartments
ranging from $449,000 to $1,185,000. This would indicate the
market is flooded with two-bedroom city apartments which will
lower demand and therefore lower prices across the board. There
are other apartments for sale in this block. ‘Why?’ I ask myself.
¿ WHAT SORT OF INVESTOR WOULD THIS PROPERTY
TP: Probably an interstate, expat or foreign investor.
HB: To maximise your returns on this apartment, I would suggest
you furnish and equip it. By spending around $10,000 you could
really benefit from the additional returns on a furnished apartment
or look at the feasibility of leasing it short-term.
¿ AT ITS PRICE RANGE, WOULD YOU LOOK TO TALK TO THE
AGENT OR WALK AWAY?
TP: Talk. Currently there are other units for sale in this block
with some performing better than others. I think a buyer has
options and is maybe in a position to negotiate prices. If so, the
end result would lead to higher yields.
HB: I would walk away (or offer a very low amount) as there are
too many new apartments coming on to the market, which have
more to offer and have better returns. API
HERE’S AN UPDATE OF PROPERTIES PREVIOUSLY ANALYSED IN OPEN FOR INSPECTION
Walk Under offer Unconfirmed
For sale Within range
Relisted Within range
For sale Within range
æThe unit is a good size
for a two-bedroom. The
complex has a great looking
pool and they do corporate
letting there, so you may get
a higher rent.Æ
OPEN FOR INSPECTION //
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