cheap melbourne apartments, next slump?

[Damap]

Wow what????

[chrisgoh]

Wow what????

The way they put it...seems like a no brainer investment

[Damap]

I assume you are joking.......

[chrisgoh]

Yes, I am joking

[Davo36]

Borrowings are calculated at 2.8% I think. Seems very low.

[PTILoveYou]

2.8%???? What?

[Wayne]

Yip - seems low even for Aus.
Gotta read the find print

[Judge]

Guys, i am considering buying an apartment in Melbourne. Not as investment really but just to be in the market in case we want to retire there in 10 years time. So happy for it to be cashflow neutral or marginally negative. Has anyone here bought an apartment in AU? I just want to know what the process is (getting a mortgage in AU Bank etc) and generally if there is anything i need to think of which is different to NZ (other than stamp duty).

Thanks.

[Damap]

Structuring is different Judge, their tax laws are different. So might pay to get some advice on that. Getting loans is easy just find a broker who works with non residents. It's simple.
No big secret problems to uncover it's similar to here. Oz has rules on non residents buying second hand real estate in many places but any agent will advise when you enquire. Not sure about Melbourne specifically on that front I was doing RE on the Gold Coast.

[The_Dog]

Same as apartment market anywhere. High rise slums overpriced as Developer pricing calculated on profit rather than market forces. Killer Body Corporate fees etc., all the usual stuff.

As non residents can only buy new, prices paid are (forced) high, and a lot of people take a bath once re-selling to secondary market.

I wouldn't buy new. Work out a way to go for older unit in small block, established area (especially if you are thinking of living in it). Saw this beauty at open home just the other day.

http://www.realestate.com.au/property-apartment-vic-middle+park-121744974

They were quoting 600, however "This is the first open, we suspect the price will firm up as we gauge interest". Yeah right!

It will start with a 7 for sure....

http://www.realestate.com.au/property-apartment-vic-middle+park-113751535

Private message me if you want.

TD

[Damap]

Designated tourist zones you can buy second hand. Not sure if Melbourne has them, Gold Coast they are everywhere.

[Judge]

Thanks Damap and TD. Appreciate your advice.

[eri]

Non-bank lender Pepper Group says it has been quietly pulling out of the Melbourne apartment market for the past year, as concerns about an oversupply bubble begin to translate into sharp price falls.

the dumping of apartments has seen prices come under severe pressure. WBP Property Group figures this week showed central Melbourne off-the-plan apartment prices slumped around 11 per cent on average in the first year between purchase and pre-settlement valuation.

http://www.theaustralian.com.au/busi...2907d28cee607e

[ChuckNorris]

As far I know, Australia is thesecond most popular country with Chinese property investors.

[eri]

All over Australia, property developers have been snapping up any land they can get their hands on and squeezing as many apartments as possible on to it.

Graphic artists are busy mocking up these yet-to-be-built residences, showing desirable urban lifestyles, with attractive, fashionably-dressed people enjoying their cafes and sunny public gardens.

The one thing they all have in common is there are too many of them - and yet more are being built.

Australia is heading towards a massive oversupply of apartments.

The number of multi-storey apartments under construction has tripled since 2010, even more so for high-rise apartments.

About 45,000 apartments are due for completion across Sydney, Melbourne and Brisbane and building approvals figures suggest around 53,000 will be finished next year.

At the same time as we are building more apartments, the drivers of housing demand are falling away.

Net migration has halved over the past eight years and investor demand has dropped as banks have tightened their lending criteria.

There might be enough demand to sustain the new apartments in Sydney, but Melbourne and Brisbane are already looking oversupplied.

http://www.nzherald.co.nz/business/n...ectid=11659493