Back in June 2008, we reviewed a property at 2/449 St Kilda Road. We didn’t buy this property which was a shame. Yet I wanted to fast forward and try and understand how this property might have performed in today’s market.
The property is part of the Kio Ora building, an Art Deco building on St Kilda Road that benefits from close proximity to everything.
I’ve listed below some points on the positives of this property for an investment:
• Scarcity : How many Art Deco apartments are located within walking distance of Melbourne’s centre? Very few. Also the period appeal of an era never to be re built also adds a certain scarcity factor.
• Spacious and Ground Floor : This gives the property the widest possible market appeal in my opinion. It suits baby boomers, young professionals and investors. Also the older nature allows for bigger interior spaces than most developers will offer.
• Lifestyle and Location : A tram or a short walk to wherever you want to go. That says it all. These factors also allows the property to be very flexible as an investment. Long term, short term and furnished rental are all options for an investor who wishes to maximize returns. This is literally right in town.
• Special Attributes : Balcony overlooking garden, natural light, carport and genuine fireplaces are those extras which help separate this asset from the next. It appeals strongly to the owner occupier market.
The price paid then was $485,000. This was excellent value and a great purchase.
The last sale in the block was unit 29. In my opinion not in the same league yet sold for $675,000 at the end of 2009. My thoughts on value now would now be $710,000 – $730,000. Maybe a touch more under intense competition.
A very healthy return indeed.