Since I posted an earlier article on 460 Victoria Street, there has been quite a bit of enquiries asking for more information about the development. From an investor’s perspective, the idea of acquiring a 1-bedder makes good sense. A check with various portals shows 1-bedders currrently asking for $340 per week within the vicinity. Assuming there’s no increase in rental within the next 24 months(which is highly unlikely as developers stopped building because of credit squeeze and record levels of migrants into Melbourne), the cashflow analysis is as such:

Property value: $320,000

Rental Income:   $17,680 (52 weeks)

Outgoings:
Interest on a $256,000 loan: $10,240 (Indicative fixed rate @4% per annum)
Indicative Body Corporate: $885.55
Council Rates:   $1,200
Water Rates:   $250 (estimated)
Contents Insurance:  $250

Cashflow:   $4,854.45 (+ve)

So if you are seeking to improve the cashflow of your property portfolio or expand your property portfolio, a 1-bedder in this development with low body corporate would suit. Needless to say, we have not taken into account non-cash deductions which will increase the tax credits for investors if you hold for the long term.

There are not a lot of 1-bedders left in this development, so drop me an email if you are interested.