5 Charnwood Road ST KILDA

Comments on 5 Charnwood Road ST KILDA

5 Charnwood Road presents as somewhat more than the tangible features before you.  Sure it is well located to transport, the vibe of Chapel and Fitzroy Streets and set amongst substantial period homes.  This block of four apartments presents with random sizes, updated but still with scope to consider the possibilities.  

However, this is an offering that may be more about considering options such as:

• Take is as it is, land bank it and continue with a passive investment. At 75% leased there may be immediate upside.
• Improve it - could the yield improve to?
• Redevelop - A house, more apartments, conversion - what would the market support?
• Subdivide and flip?

What are your performance metrics?  Yield, capital growth?  Will you leverage? Does negative gearing come in to play? Tax implications of gearing and growth - short or long term?

There are the "not so perfect" considerations also.  Floor plans are quirky - one might say "character-filled" and differ from apartment to apartment.  Land is irregular, but there is still space for garden and parking - with 2 car access points, there's space for at least one car per apartment.  Southerly orientation side, close to the traffic which will lead to noise, and the imposing structure that has been constructed on the western boundary.

Numerous strengths, perhaps some weakness and the potential.  At certain levels competition may be anticipated.  The options may be many - the decision, not so simple.  How this property will be used will contribute to the determination of market value for the buyer.