Bondi

[Orks]

Hi guys

Does anyone own any apartments in Bondi, or the Sydney eastern beaches, aka Coogee, Clovelly, Bronte etc?

I've found a little one bedder just off the end of Bondi Rd, in a fairly large old group, for $300k. It has awesome views of the water, and is rented for $350 per week. Sounds OK, but it has horrendously high strata fees of $1600 per quarter, due to some unspecified works that are required.

Do you think it has the potential for decent growth that would make it worthwhile paying the high strata fees? I mean Bondi is probably the highest density suburb in Australia, it's obviously very popular and finding tenants would be a problem, but would oversupply be an issue?

There's another unit for sale in the same group for $340k which is higher up which has even better views, to North Bondi on one side and to Maroubra on the other side, but the strata fees are the same and it rents for the same. Weird.

Anyway, would welcome your thoughts.

 

[tess85]

the strata levies are a bit of an ouchie! do you know how long they'll go on for?

have friends who have IPs in bondi - there will always be demand there (unless global warming wipes out the street, but that's another story, and it should be far off)

 

[eastside]

Do you live in Sydney? I live very close to Bondi, drove past there last week, and noticed a lot of scaffolding along the older buildings facing the beachfront. It might be one of those concrete cancer things, from salt corrosion over the years (the high strata). there will always be huge demand for rentals, enormously popular location but a lot of the buildings quite run down. I noticed also a council rejuvenation sign. Might be worthwhile checking Waverley council website.

 

[Buzz]

Yep I have a unit there. At the nthrn end of the parade there has been some properties looking very unsteady - movement of the sand I think.

Anyhow before you committ to anything, make sure you get a copy of the Body Corporate minutes from the Strata Manager which should list all propsed works issues, how long special levies will last for and what their current sinking fund and other fund limits are. This will give you an indication of how much extra cash you may be up for.

I looked at a unit recently in Maroubra where there was a special levy of $100k per unit due in 6 mths based on a roof needing replacing and concrete cancer - now you wouldnt want to sign that contract without checking out the minutes would you.

Hope this helps
Jane

 

[Zhouse01]

Yep I have a unit there. At the nthrn end of the parade there has been some properties looking very unsteady - movement of the sand I think.

Anyhow before you committ to anything, make sure you get a copy of the Body Corporate minutes from the Strata Manager which should list all propsed works issues, how long special levies will last for and what their current sinking fund and other fund limits are. This will give you an indication of how much extra cash you may be up for.

I looked at a unit recently in Maroubra where there was a special levy of $100k per unit due in 6 mths based on a roof needing replacing and concrete cancer - now you wouldnt want to sign that contract without checking out the minutes would you.

Hope this helps
Jane

OMG that would be a nasty surprise.

 

[Peter 14.7]

Upgrading to meet fire regulations also come into the BC cost. FYI Peter

 

[Ajax]

Buzz/Jane,

$100k special levy for a unit in Maroubra....sheesh...how much were they asking for the unit? Hope it wasn't a studio.

Eastside,
I know there are also issues with some older units in Manly that have been built on the flat sandy areas. Lots of movement/cracks in walls.


Concrete cancer and rusting wall ties are a real issue for older units that are very close to the water around Bondi, Tamarama and Bronte. I know of one block (blonde brick block next to Marks Park on McKenzies bay...if you have ever done the Bondi-Bronte walk you walk right past it) where all the wall ties were rusted out...cost body corporate a lot of money to fix.

Ajax

 

[joeExpat]

I own a 1 bed near the water in Coogee, 400/qtr strata fees. Did have a 10k levy once about 12 years ago, otherwise has held up ok (1920s block).
300k with views sounds cheap for Bondi, unless prices have fallen more than I thought.

 

[tigerGT]

Yeah I know the building you are referring to. There is a auction there today for a 2br unit. Strata for that unit was $2400 per quarter. Ouch!

Gorgeous views though from every window and expected to get 500k-550k (150k less than last 2br that sold there) at auction today. 10.30am
.
Rents for $600 per week.
.
I would buy it at 450k but not anything over due to high costs of strata.