Is the Brisbane apartment market on a downturn i only ask as i was going to buy a 2bed+2bath+2car apartment as i am overseas i was given a price of $690000.
My bank in Oz gave me a call they where worried about the price so they sent a staff member to the sales office and they where offered the same type apartment on the same floor for $470000, off course the bank told me they would not accept this.
Has the Brisbane market fallen this much since october or are the developers trying it on as i am overseas any experiance would be great,thanks.Ouch that does seem excessive!!
If you see the commercials on telly you get the distinct impression you can get into an inner city apartment for as little as $245k (avg $375k).
I had a friend renting a 2brm/2bath/1car apartment in a building called Cathedral Place in fortitude valley. The rent was $280 p/w and this building was pretty flash.
I think the commentators in Brizzy are saying to steer clear of apartments in the city as so many are in the process of being built.
i think the developers are trying it on alright.
Thanks for that this building is Charlotte Towers it seemed a good starting pint as Devine where giving a $250000 rental promise for the first year.
Hi Mgr,
Don’t be seduced by the rental guarantee as there can be a number of pitfalls attached. A well chosen property, marketed at the right rent should be able to sustain itself at market rates.
1. Who is providing the guarantee? I have seen instances where the ‘guarantee’ was provided by insurance companies, another by a $2 shelf company and yet again instances where the guaranteed rental was far in excess of market rates and made an otherwise poor investment look glowing.
2. Some developers (not saying this the case here) use a guarantee to move a property to investors and the cost of the guarantee is built into the price.
3. Irrespective of whether or not you decide to go ahead with this investment at best you will need to find another bank – the one you are currently using will not value the property anywhere near the asking price.
Another bank may use a different valuer in which case you will not be required to make up the significant shortfall – although given the discrepancy I suspect other valuers will still come up short.
Such a difference is going to be hard to make up in the current market and as such you are better off looking elsewhere.
Good luck with the hunting.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
move to another bank? am I missing something?
move to another bank to finance overpriced apartments?
move to another bank because they went out of there way to protect this persons interest (and of course longer term their own). Seems like they may have actually earned some loyalty, if that word means anything these days
I will happily give someone a $25,000 per annum rental guarantee for 5 years if they were paying me $200,000 over price. Firstly, I would invest the $200,000 in high returns. Then I would put a tenant in at as high a rental as I could (probably $15,000 per annum). I would supplement the rental shortfall with the $200,000 extra I received on the purchase. Over 5 years, I had to pay out $50,000. I am still in front by $150,000 and I would have made about another $100,000 profit (conservative) over the five years on the extra funds I was paid which I invested.
Overal result is an extra $250,000 in my pocket over 5 years.
Rental guarantees are worthless regardless who provides them!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Originally posted by yarpos:move to another bank? am I missing something?
move to another bank to finance overpriced apartments?
move to another bank because they went out of there way to protect this persons interest (and of course longer term their own). Seems like they may have actually earned some loyalty, if that word means anything these days
The difficulty MGR has is that he is overseas and if he still wants to purchase the property despite the previous comments and the figures provided by his bank – he should try and secure another lender – one that may value the property higher than the one he is currently using.
Based on their own research the current lender is not going to recognise anything above $470K and as a consequence the property will require too much of a ‘deposit’ which will be hard to claw back in an inner city apartment market at this time.
BTW – I would be looking elsewhere.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Thanks for everyones help sounds like the property is over priced for the inner city apartment market in Brisbane, i think i should carry on my search elsewhere also sounds like i owe my investment manager at Westpac a few drinks.
Thanks.
mgr.
Mgr,
I’d be wary of any Australian apartments being flogged overseas. Often, marketers look to overseas buyers when locals perceive the product to be vastly overpriced. There was a string a while ago started by a guy who bought a Melbourne property off the plan at a seminar in London. It turned out to be a mistake. For this reason, I’d also be wary of Auckland apartments being marketed in Australia.
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http://www.depreciator.com.aumgr, I am glad to hear you say that about your investment manager. People think that shortfalls in valuations are a personal attack on them by the lender. The lenders use professionals and if there is a shortfall, you should consider it a good warning that you are in for trouble.
I hope you find something better (which almost always happens)!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Get independant advice. Independant valuation, solicitor and building inspections. Before buying property you are not familiar with.
I have no experience with apartment and Brisbane property market, but why they have to advertise them overseas if they are consider as good value. People in Australia are property crazy, they will buy any good value property. I wonder if the developer have tried to sell them locally and they can’t find buyers?? Too expensive, too many??
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