We made an offer on this apartment for $721,000 and got turned down this week
Its a nice apartment but small for a 3br at 96m2 (check out the floorplan magic for the kitchen converted to 3rd bedroom from January to today below)
I think $721,000 is a reasonable price on something that will probably rent for $580pw (4.1% gross yield)
I also bid that price knowing full well that 12/16-20 Hampton Court Road, CARLTON NSW 2218 sold in January 2015 for $531,000
But I figured after stamp duty/capital gains/carpet/paint/bathroom and kitchen that it was a fair increase over the original price.
At the end of the day the vendor probably will be getting a better offer….but whoever buys it is going to be having difficulties justifying the purchase price when mortgage rates go back up to 5-6% and only making 25k a year after expenses (but before interest) so it will be costing an investor about 2k per month in servicing costs over and above rent.
Unless rental rate income goes up dramatically in 2016-17 there are going to be some awesome bargains happening in Sydney as interest rates go back up.
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