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15 replies to this topic | 125 praises

#1

Posted 13 February 2019 - 02:00 PM

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Hello peeps, anyone here looking to buy oversea property? Or anyone buying 1 in Melbourne? I am looking to get one apartment and im looking at Melbourne as it is more of a safe haven to invest in IMO. The price is pretty steep, capital growth is not that fantastic but in long term holding, I think it should be an uptrend. 

 

Anyone has any advice of getting one in Docklands area? Is it overpriced? This one looks like it is just beside CBD wor. Any expert here with advice?

 

https://investoprop....ments-for-sale/ This is one is the one in Docklands. 

 

https://investoprop....urne-southbank/ And this one in Southbank.

 

 

 


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#2

Posted 13 February 2019 - 02:18 PM

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Isn't aussie property on a downward trend now?


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#3

Posted 13 February 2019 - 02:25 PM

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Yes thats what I heard, but that doesnt happen to all states. Melbourne seems to be still stable. If not, I guess UK is also another good investment. What do you think?



#4

Posted 13 February 2019 - 02:26 PM

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The property bubble is deflating right now and no end is in sight. 

 

2019 will see prices drop at least another 5% (doomsday preppers are digging their trenches and forecasting 30-40% and civil and social unrest in Melbourne and Sydney). 

 

Why the hurry to invest in Melbourne right now? Wait another couple of years and wait out the price decline. 

 

If you know locals, you should steer clear of Docklands. On paper, it is walking distance to the CBD but in reality, no local wants to buy there. It looks nice and glitsy when you visit in person but is well known that the Docklands are are primed and prepped for foreign investors and since foreign investment in property are drying up in Australia you might find it hard off load an apartment there in the investment time frame of within 5 years. 

 

Do you know of the exorbitant cost of owner's corporation fees and council fees for high rise apartments in Melbourne? These payments coupled with low rents, high cost of maintenance will suck you dry with no much left from the rental fee. 

 

As you have mentioned that you are aware of the limited upside to capital gains but why invest in Melbourne apartments that offer low yield? 


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#5

Posted 13 February 2019 - 02:37 PM

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Invest only in what you understand otherwise it is as good as going to casino to gamble.


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#6

Posted 13 February 2019 - 03:10 PM

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For aust you need to pay about 30 percent of net income to tax. I’m not sure about Melbourne but for perth locals prefer to rent a regular house with garden, and most people drive so transport is not a huge concern.

For UK property management is the main headache, the tenant rights (inc non paying ones) are very strong. That said if you find an apartment where the building management is also the letting agent then it’s better. That said currency risk is a concern

Edited by Mercury1, 13 February 2019 - 03:12 PM.

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#7

Posted 13 February 2019 - 04:34 PM

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I have had the experience of a Melbourne property. What the bros cautioned is absolutely true especially costs such as water rates, maintenance charges,taxes,etc and of course currency risk. If you really have the extra cash,there are many options especially here in Singapore where you are physically located here and henceforth more convenient to attend to your property.
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#8

Posted 13 February 2019 - 04:58 PM

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For aust you need to pay about 30 percent of net income to tax. I’m not sure about Melbourne but for perth locals prefer to rent a regular house with garden, and most people drive so transport is not a huge concern.

For UK property management is the main headache, the tenant rights (inc non paying ones) are very strong. That said if you find an apartment where the building management is also the letting agent then it’s better. That said currency risk is a concern

 

ouch. 32.5% to tax (after deductions for expenses).

https://www.beyondac...expat-property/


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#9

Posted 13 February 2019 - 04:58 PM

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For aust you need to pay about 30 percent of net income to tax. I’m not sure about Melbourne but for perth locals prefer to rent a regular house with garden, and most people drive so transport is not a huge concern.

For UK property management is the main headache, the tenant rights (inc non paying ones) are very strong. That said if you find an apartment where the building management is also the letting agent then it’s better. That said currency risk is a concern

 

ouch. 32.5% to tax (after deductions for expenses).

https://www.beyondac...expat-property/



#10

Posted 13 February 2019 - 05:02 PM

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Thank you all for all the advice. I will do my due diligence check on all the taxes and annually fees before going further.  [thumbsup]



#11

Posted 13 February 2019 - 06:06 PM

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Yes do your due diligence. Once decided, don't look back. In all fairness,it was still a decent investment for me. Am still holding on to property btw. Gross yield is still decent 6.8%pa. of course there are costs involved too. It has been 5 years for me and the longest interval in which I didn't have a tenant was 3 weeks. Not too bad if you ask me. Location helps a lot since it is located directly opposite Queen Victoria market. Tenants include Melbourne University students and CBD workers who may have landed homes in the suburbs but decided to rent a place for easier commute during week days. My personal observation. Cheers mate!!

#12

Posted 13 February 2019 - 06:19 PM

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Hello peeps, anyone here looking to buy oversea property? Or anyone buying 1 in Melbourne? I am looking to get one apartment and im looking at Melbourne as it is more of a safe haven to invest in IMO. The price is pretty steep, capital growth is not that fantastic but in long term holding, I think it should be an uptrend. 

 

Anyone has any advice of getting one in Docklands area? Is it overpriced? This one looks like it is just beside CBD wor. Any expert here with advice?

 

https://investoprop....ments-for-sale/ This is one is the one in Docklands. 

 

https://investoprop....urne-southbank/ And this one in Southbank.

 

I studied in Melbourne for 3 years and am currently working for a Singapore developer that is developing apartments in Melbourne. Will try to help as much as I can but I could be incorrect in some areas (disclaimer first)

 

House and Land vs Apartments

 

Locals still prefer house and land. But the quantum is high (in millions) even for suburbs close to the CBD. The cheaper option is Werribee (maybe $700k?) but you are targeting quite a niche market. The government is trying to create a town there by investing in a job precinct and the outdoor zoo. However popular house and lands are usually snatched by the locals and when you have an opportunity to buy a house and land it could mean that the demand is not up there

 

Apartments are still dominated by investors and immigrants. You should consider 2 bed 1 bath/2 bath as their yield is generally better. Locals are starting to shift into apartment but they are looking for 3 bed with luxury finishes. The buyer profile are doctors, accounts etc. and they have the money to buy thus they wont be renting from you

 

You can consider townhouses. Getting popular and there is strong demand from the locals

 

Tax

 

You will have to pay 5.5% stamp duty (for completed projects, and almost 0% for off the plan projects) and 7% foreign stamp duty. 

Income from rental - you can hire a tax advisor who will file the depreciating taxes and you may not have to pay for it

IIRC there is a new tax for people who rent out their apartment. I need to check for you later tonight

You cannot sell your unit to a foreigner. Only locals can buy 2nd hand. Thus quick liquidity of your asset is an issue. 

 

Area to Consider

CBD - best bet for rental. Projects like Avant (almost fully sold) has a rental company within called Avani which will rent out your apartment like a hotel. They are doing very well. You can also consider Aurora which is currently going staged Settlement (TOP) and there are owners who are trying to sell at cheap

 

Southbank - locals prefer this area as they want to be separated from their work place in the CBD. However there is an over supply in this area, with many old and upcoming new projects like Prima Pearl or Australia 108. The latter is gonna be the tallest residential building and you will have great views. Interestingly i use to stay in Southbank before I moved to the suburbs. 

 

Docklands - not recommended. Only known for the new offices and the famous Asian club Alumbra.

 

Market Sentiments

  • Current government is not approving new developments + many off the shelf projects have not launch due to weak market sentiments
  • Fragrance sold one of their projects to another Australia developer to be converted to office tower = one less residential building
  • Construction cost and land cost in Melbourne is only going to go up. Fragrance sold their land at twice the price for holding it for a few years
  • Government is still welcoming skilled immigrants which will slowly drive demand
  • Valuation is currently poor, usually short by 10 to 20% off contract price. this will affect loan
  • Weak demand due to tight/zero lending by local banks. However how long can this last? If developers are not building = no jobs for the locals. We are expecting the banks to soften their stance sooner or later
  • Weak demand due to China tightening and preventing their people from transferring money out. We got many China buyers. Most of them by cash but they are having difficulty settling their apartment.
  • Many developers are offering 5% to 10% rebate to absorb the stamp duty. However not many are lowering their price any further as their land and construction cost are high

We expect demand to be weak and prices to be stagnant. Supply is high but good thing is there will not be that many new developments. But should you buy when demand is high and price is increasing? Or should you buy when the market is weak?


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#13

Posted 13 February 2019 - 09:05 PM

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Hello peeps, anyone here looking to buy oversea property? Or anyone buying 1 in Melbourne? I am looking to get one apartment and im looking at Melbourne as it is more of a safe haven to invest in IMO. The price is pretty steep, capital growth is not that fantastic but in long term holding, I think it should be an uptrend.

Anyone has any advice of getting one in Docklands area? Is it overpriced? This one looks like it is just beside CBD wor. Any expert here with advice?

https://investoprop....ments-for-sale/ This is one is the one in Docklands.

https://investoprop....urne-southbank/ And this one in Southbank.


Before buying any foreign property, you must understand and accept the regulations, restrictions, tax
issues. Similar to Iskandar, some people jump in simply due to Price.

Unless its really small money to you or you love the place so much, you will be most willing to live there.
Otherwise, resale opportunity or exit strategy is one of the most important key issue to consider.

That has been keeping me away from OZ properties for the last 10 yrs.

In fact i even considered an ocean facing house in Hawaii where there are no restrictions for foreigners
Surrounded by nature, 5000sft land, 2 storeys, big swimming pool, 30mins drive to Honululu CBD, just under USD2mil. Decided that its a no go unless i was really willing to pack up and leave singapore in my later years to join Hawaii Five O.

😁🤣
Targetting to truly retire by 2028
Give away my CPF
Travel the world and smoke those Cubans!

#14

Posted 13 February 2019 - 10:05 PM

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Pengz Singapore to Hawaii is 14 hours xia ouch!

 

Before buying any foreign property, you must understand and accept the regulations, restrictions, tax
issues. Similar to Iskandar, some people jump in simply due to Price.

Unless its really small money to you or you love the place so much, you will be most willing to live there.
Otherwise, resale opportunity or exit strategy is one of the most important key issue to consider.

That has been keeping me away from OZ properties for the last 10 yrs.

In fact i even considered an ocean facing house in Hawaii where there are no restrictions for foreigners
Surrounded by nature, 5000sft land, 2 storeys, big swimming pool, 30mins drive to Honululu CBD, just under USD2mil. Decided that its a no go unless i was really willing to pack up and leave singapore in my later years to join Hawaii Five O.

😁🤣

 


Hows ur tax reporting going  [;)]

 

Yes do your due diligence. Once decided, don't look back. In all fairness,it was still a decent investment for me. Am still holding on to property btw. Gross yield is still decent 6.8%pa. of course there are costs involved too. It has been 5 years for me and the longest interval in which I didn't have a tenant was 3 weeks. Not too bad if you ask me. Location helps a lot since it is located directly opposite Queen Victoria market. Tenants include Melbourne University students and CBD workers who may have landed homes in the suburbs but decided to rent a place for easier commute during week days. My personal observation. Cheers mate!!

 


My F30 review

Mitsubishi Lancer Coupe (Gone) -> Mazda Astina (Gone) -> E46 3.18 M Sports (Gone) -> Renault Clio (Gone) -> Mini Cooper S -> BMW 3.28i M Sport

#15

Posted 13 February 2019 - 10:32 PM

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Pengz Singapore to Hawaii is 14 hours xia ouch!



Hows ur tax reporting going [;)]


Always pay
Always on time.
In fact i think i overpay

Lucky these few years unemployed so nothing much to pay
Lose to RadX big time.
Sigh.....
Mercury1 praised this
Targetting to truly retire by 2028
Give away my CPF
Travel the world and smoke those Cubans!

#16

Posted 28 February 2019 - 04:06 PM

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House and Land also seems not too shabby, seems to be cheaper than those near to CBD apartment. Can consider. Hawaii ar, too far and exp to even think of. 

 

https://investoprop....house-and-land/




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