707/60 Market Street, Melbourne, Vic 3000 - More Details
$210,000
Positioned on Level 7 of the ever-popular 60 Market Street complex, this generous 35m² studio apartment presents an attractive opportunity for investors seeking strong income today, together with significant longer-term potential.
Overlooking Market Street at the front of the building, the apartment offers considerably more space than many typical CBD studios, with a well-defined and generous bed area, separate living zone and kitchen, entry hall and a spacious bathroom complete with shower over bath.
The apartment is securely leased to Oaks Hotels & Resorts until 31 August 2031, providing a reliable rental income stream with annual CPI increases built into the lease.
Importantly, at the conclusion of the Oaks lease, the property offers considerable flexibility with the potential to move into the apartment, lease it privately, potentially operate it as short-stay accommodation such as Airbnb, or negotiate a further lease with Oaks.
The expiry of the long-term hotel lease also provides an attractive potential value proposition. Comparable apartments that are not encumbered by long-term hotel leases can command substantially higher prices, providing the potential for a meaningful uplift in value once the current lease expires.
Investment Details
Current rental income: $15,532.44 per annum
Plus Annual CPI rental increases built into the Oaks lease
Lease expiry: 31 August 2031
Owner pays OC sinking/capital works fund: $1,140 p.a.
Temporary levy: $104 per quarter for a further 6 quarters
Oaks pays council rates: $801 p.a.
Oaks pays Owners Corporation administration fund: $4,696 p.a.
Oaks pays water rates: approximately $850 p.a.
This means the substantial majority of the property's outgoings are paid by Oaks during the lease term, leaving the owner responsible for extremely modest annual outgoings and a high, cash flow positive, net yield.
60 Market Street is one of Melbourne CBD's popular apartment buildings, benefiting from an exceptional central location and well-maintained common areas and facilities. Residents and guests enjoy:
Large indoor swimming pool
Heated spa
Fully equipped gymnasium
Sauna
24-hour concierge
On-site bar and restaurant
Positioned moments from Collins Street, Flinders Street, the Yarra River, Crown, Southbank and Melbourne's renowned dining, shopping and entertainment precincts, the location provides everything the CBD has to offer within easy reach.
For the investor, this is an opportunity to secure a generously proportioned Melbourne CBD apartment with strong contracted income, exceptionally low owner outgoings and annual CPI rental growth, while retaining the prospect of considerably greater flexibility and potential capital value once the Oaks lease concludes in 2031.
A compelling set-and-forget CBD investment today, with an exciting longer-term opportunity for tomorrow.
- Type
- Apartment
- Bathrooms
- 1
- House Size
- 35 m²
