New Development
I had a friend approach me the other day with a proposal he is looking at near Atwell/Jandakot areas I think..western side of Freeway anyhow and 7-8km from the proposed marina
There are about 20-25 dwellings in the complex
3×2 Strata Units with B.I.R, alfresco area, double lock up garages/storage space and A/ConditionedThey anticipate rents of around $230-250 and expect the development to be finished in Jan 07 (subject to change) and are asking about $260k-270k
Units are about 150-160sqm with a land component of about 230-240sqm
Not sure of the contract details, but I presume a $1000 deposit and finance approval within a month and a deposit of 5-8% when titles are registered and progressive payments if its anything like other deals I’ve viewed.
Any thoughts from anyone or the developers on the forum?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorIs the proposal for him to buy one as a passive investor, or is he trying to sell it to you?
If you wanted an opinion from someone who prefers to build and therefore capitalise on the difference between cost and market price, I would say, do your own.
On the other hand, if you are a passive investor who does not want the hassles and headaches in going through the building process with the attached delays, it may be a reasonable deal.
I would question the rent return at $250pw, when that is apparently what a new 4×2 will get in the surrouding suburbs, and be wary of having a strata in such a relatively large complex, but thats just me.
kp
In the same area for around the same price you can purchase a 5 acre block…that’s 80 or 90 times as much land as those handkerchief type blocks.
With massive depreciation in the value of the new home, I reckon you’d be lucky to see any ‘growth’ for many years…what with the tiny land component having to overcome the big drop in value of the bricks and sticks.
Originally posted by kp:Is the proposal for him to buy one as a passive investor, or is he trying to sell it to you?
He’s looking at it as his first IP, I had a quick look at the deal he had..just wanted other opinions.
Personally I think he could do better 2nd hand and a bit cheaper, but that’s just me.
If you wanted an opinion from someone who prefers to build and therefore capitalise on the difference between cost and market price, I would say, do your own.
On the other hand, if you are a passive investor who does not want the hassles and headaches in going through the building process with the attached delays, it may be a reasonable deal.
I would question the rent return at $250pw, when that is apparently what a new 4×2 will get in the surrouding suburbs, and be wary of having a strata in such a relatively large complex, but thats just me.
kp
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by Dazzling:In the same area for around the same price you can purchase a 5 acre block…that’s 80 or 90 times as much land as those handkerchief type blocks.
With massive depreciation in the value of the new home, I reckon you’d be lucky to see any ‘growth’ for many years…what with the tiny land component having to overcome the big drop in value of the bricks and sticks.
Thanks Dazzling..I’ll get him to have a look at prices for land in the area as well, as with most of these deals I think it’s the developer who reaps the benefits (why not, he’s done most of the work), however, as stated before thats just my veiw and I think there’s better value elsewhere.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorTurns out he bought one of the properties and the whole complex sold out within the day??
I was right with the $1,000 deposit and his first payment is 6.5% in April, then it is construction costs in stages with the complex to be finished before the years end (06)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
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