Sydney Inner west apartments: 32/21-25 Coulson street, Erskineville

Unit 32, 21-25 Coulson street, Erskineville 1

FOR SALE: 32/21-25 Coulson street, Erskineville, Sydney

Apartment 2 bed, 2 bath, 1 car

Refurbished 2007

Size 85 sqm internal space including ground floor courtyard. It has security car space of 12.65 sqm and  a separate storage facility of 4.2 sqm.

Asking price Close to the mid $600k’s.

Erskineville is known for its vibrancy in terms of an alternative lifestyle among Sydney’s hip and Bohemian. This suburb is a mere 4.5km from Sydney CBD and 2km from the University of Sydney.

Location wise, this apartment is ultra convenient whereby it is within 300 metres to the St Peters train station, a 3-stop train ride to Central station. It is also within walking distance to the cafes and restaurants along King street in Newtown and Erskineville village shops and cafes.

This building was previously a light industrial premise but is now known as Star Printery Apartments. It has since been fully refurbished with modern conveniences and the professional team involved in this project include Turner & Associates architects and builder DeiCorp.

The apartment has 2 bedrooms both with built-in wardrobes opening out to an east-facing enclosed courtyard. The main bedroom has an ensuite.

Erskineville has been identified by Peter Koulizos, author of Top Australian Suburbs as one of the best areas to invest in 2010 along with other inner west suburbs such as Alexandria, Enmore and Darlington.

The downside to this property is that it may experience train noise due to its close proximity to the tracks.

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Vital statistics

Erskineville Median price $ Weekly advertised median rent $ Gross yield $ 3-year growth % 5-year growth % Average annual growth %
Apartment 490,000 500 5.3 22.5 16.7 6.8
House 650,000 570 4.56 15.04 14.04 7.3

Source: RP Data, June 2010


How it’s calculated:

Median price: Median price for the 12 months to February 2010

Average annual growth: Average percentage change over the past 10 years as a per annum figure

3 and 5-year growth: Median price percentage change over the past 3 and 5 years to February 2010

Weekly median advertised rent: Median price of rental listings for the 12 months to February 2010

Gross yield: Estimated rental return, based on advertised rent to median price

How to find positive cashflow properties

House on Sedge street, Braybrook

3 bedroom house by the Maribyrnong river valley in Mebourne

With rising interest rates, it is obvious that positive cash flow properties will become more scarce. Buying into a positively geared properties has the key advantage, apart from having a positive cash flow, is its ability to shield the investor from the ups and downs of the property market. When the economy or the property market is soft, a cash flow positive investment property does not add additional burden to the investor because it is more than paying for itself.

A combination of the following factors can achieve a positively geared outcome for the investor:

  • Low interest rates. It is obviously easier to find positively geared properties in a situation where interest rates are low. However, it doesn’t necessarily mean that these type of properties will disappear altogether.  The astute investor will need to make certain assumptions about where interest rates are trending in order to make informed decisions on whether to fix their interest rate on a mortgage in order to minimise the upward exposure on mortgage costs. Read accurately, a good interest rate strategy can turn properties with negative cash flow to positive cash flow even in rising interest rate regimes because the astute investor has fixed his/her mortgage cost base.
  • Potential growth suburbs within capital cities. Every major city has suburbs which have gone through a process of transformation and gentrification. Picking these suburbs involve looking at neighbouring areas which have experienced good capital appreciation whilst property prices in the surrounding (growth) areas have yet to move with the market. As long as these surrounding areas have good public amenities with good access and are located strategically close to the CBD, they are more likely to experience similar growth in the future like their neighbouring areas did in the past.
  • No land tax. A modest property which is within the threshold for land tax could potentially save the investor thousands of dollars each year.
  • No strata levies. Some investors are more partial to buying landed property over apartment units for this reason. Imagine the amount of savings that can be made over the course of holding an investment property which is free from strata levies.

Among some selected areas identified by experts to  experience good capital growth over the next five years and hence increase the chances of properties being positively geared and give investors an opportunity to refinance are:

  • Chippendale and Darlington in Sydney, New South Wales
  • Maidstone and Braybrook in Melbourne, Victoria
  • Thebarton in Adelaide, South Australia
  • Clontarf in Brisbane, Queensland
  • Victoria Park in Perth, Western Australia
  • Glebe in Hobart, Tasmania

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