Why investor Patrick Hernandez bought a Cultivate, Heidelberg West apartment: Urban buyer Q&A
Cultivate, the newest apartment project by developer Kincaid, is set to change the face of the small suburb of Heidelberg West when it is completed in late 2023.
Ideally located between the adjoining suburbs of Ivanhoe, Heidelberg and Preston, Cultivate will be the first high-rise in Heidelberg West. It will activate the street-level of Bell Street, with retail space at the foot of the two buildings.
Over 50 per cent of the building has sold, to a good mix of first home buyers, investors, and owner-occupiers, Kincaid's development manager Joel Martin says.
Investor Patrick Hernandez was one of the latest buyers. He saw a number of benefits to Cultivate, his first investment in Melbourne's northern suburbs.
We recently sat down with Patrick to discuss why he opted for a Cultivate apartment.
JR: How did you discover Cultivate?
PH: Via email and Urban’s internet website.
JR: What makes Cultivate an attractive investment opportunity?
PH: Good value for money with strong capital growth and long term rental yield.
JR: How do the returns in Heidelberg West compare to investments you have in surrounding areas?
PH: This is my first time to invest in this part of Melbourne, i. e., in the northern suburbs.
The investment however ranks comparatively though, with an attractive rental yield at 5.2% which is much better than most investment properties I have researched so far.
Capital growth is projected to be around the same level.
JR: Which apartment configuration did you opt for, and what led you to narrow down your decision to the apartment you purchased?
PH: I opted for a two-bedroom, two-bathroom, one-park unit as this unit type would give me a much better yield than a one-bedroom unit in the long run.
JR: What made you decide to buy?
PH: The demographics and gentrification of the area has a lot of potential for further growth and development!!
JR: Are there features at Cultivate that surprised you?
PH: It has a WALK SCORE of 80, ergo, more room for future growth and development!
JR: What do you love most about what Cultivate has to offer residents?
PH: It’s gentrification from surrounding but more established suburbs of Ivanhoe, Preston, and Heidelberg will spill over to Heidelberg West to spur further development in the area.
On top of this, La Trobe University has plans to become a “world-class University City of the Future with its 235 hectare Campus development.
Ergo, this will create over 20,000+ jobs over ten years, additional housing for 12,000 students, and educational facilities for 40,000+ students. This will generate $3.5B in GRP over 10 years!
JR: Do you have any advice for budding investors?
PH: Do the maths as this rare property investment in Cultivate is a no brainer! If you are looking for strong capital growth and consistent rental yield, DON’T GO PAST CULTIVATE @ HEIDELBERG WEST! It will surely pay you handsome dividends!
