Australian Money Forum

[x452]

Hi,

Just wondering what people think of inner city apartments as investments? The following ad caught my eye in the domain on the weekend:

http://www.castrangilbert.com.au/frames ... yID=574930

"Rental Guarantee up to $316 per week."

I read the catch with these rental guarantees is you're left high and dry after the guarantee period ends (normally 1-2 years) trying to rent out the property way above what the market says it's worth.

Thanks,
Andrew

[wulfgar]

I can think of better ventures. Like crawling into the coffin of a victim of the plague!
The sharemarket fallout usually results in a flight to safety like property. One might expect to flip some good property deals in the next 12 months.
But I'd be inclined to look at something more suburban. Units might be the go!

[x452]

Units were my first option. I looked at a couple in a low-end suburb such as Broadmeadows (close to everything) and they sell for around $210,000 and only return about $215 a week, that's only 5.3% rental return. Whereas the city apartment would return around 8% and it's $25K cheaper. I'm not sure about capital growth though, I don't know how much city apartments increase in value compared to a unit in a low-end suburb.

[antvel78]

I would much rather buy a unit in the suburbs - say Ascot vale, for example.
It's 7 km's from the city, still reasonably priced (can pick up a decent place for $400,000, and will hold or increase it's value.
City living is overrated IMO.



www.banks.net.au

[SkepZer]

I know this thread is quite too long but I am just curious if this apartment is still alive. I want to visit and stay just only for a day or a week. I am not sure if this plan will post through after a month.