Hi all,
Still plugging away with finding a first home…. and make a profit on the way!
Me not having been in the property market long enough, what are your opinions in buying into housing estates? Eg. Mirvacs, etc.
My budget is $350-360k.
Mirvac is offering a wonderful new house estate in VIC, Waverley Park. The property for sale is $357k is a mere 210sqm w 3BR, 2Bath (or 3 toilets), 1 Garage. It’s a 7 year project with over $1billion spent, etc. They are putting in bus lines, gyms, shops, $60million re-developing shopping centre next door, etc. It’s also near other shopping centres, uni, schools, freeways, etc. 90% are owner occupied.
Is this worth buying and selling in the future? Say 5-10 years?
or is money better spent on purchasing a 700sqm 40year old house (stretch of my budget)? or a newer unit?
with the new Mirvac house, I have a chance to rent one room out. With the others, I’m not too sure if I can do that thou.
The Mirvac estate has just completed Stage 1 (ie 25% off the entire estate), and facilities such as bus line, gym, stores, doctors, parks, are finishing in next 2 years. Is it a good buy now before all facilities are up and perhaps increase property value?
Thoughts?
Cheers,
Daveany comments?
From what i have seen of Mirvac developments they do seem to employ excellent design and that translates thru to resales. East Cove in East Perth has done really well. Burswood is shaping up really well and Bunker Bay is very impressive. Old or new? tough call… there is more at stake here than finances as you need to enjoy what you are living in. of course if you do rent a room that will be a decent contribution to your repayments as well.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
I would reccomend buying an established home in an established suburb, you know the trend and ther is not as much risk involved. But im only a newbie, and am learning just like you. Good Luck.
Mirvac have planned through really well from landscaping, park areas, to organising busses into the estate.
Its just some friends/family are against Mirvac homes and seem to think that it’s not worth buying… maybe because of their old perception that old estates are better and new ones are overpriced?
What I was hoping was, as Psychiatrist put it, someone experience in trends of estates? especially from Mirvac. Especially with our Waverley Park Estate, there is no way you can buy a brand new townhouse at $360k that’s only 25mins from the CBD.
Cheers!
As you have been checking new estates, how much do you reckon Mirvac or the others are willling to negociate the prices on new homes?
Do you reckon is easy to negociate old homes?
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Mirvac is strictly non negotiable on price of the house… but they can negotiate on the duty… knocking say $7k off the total $17k because its a new home and duty is on land only…
so there is an element of control of the price and they ensure that prices will not drop and will only increase… the next round of homes will be $400k+
but compared to older homes, there is definitely ability to negotiate 10% off with the current buyers market…
On another note, is it illegal to to quote a too low of a price and then expecting to sell for more than 10% of the quoted price? Eg. Judd White real estate have been asking $230+ or $320+ and expecting sales of $270+ and $390+?
Hi kingdavid,
Can you explain a bit more about they can negotiate on the duty? I do not get it very clear how it is negociated?
Clones************************
The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.because it is a new home, duty is only paid on the value of the land… not the building…
so when Mirvac built the property, they have only paid duty on the land. when they sell the property to us, they will pass on the savings to us, which we will negotiate by how much…
i guess that is their way of controlling prices in the estate… much like apartments…. if apartments have been sold in a new building for say $300k, and they are having troubles selling the remaining apartments, they will not drop the prices on the new apartments because that will not only piss the previous buyers but also drop the value…. so they provide other incentives such as home theatre systems, furnitures, appliances, etc when they sell the remaining apartments and maintain the $300k mark…
that’s my take from a newbie…
[blush2]Before buying something like that I’d be weighing up what else I could get for the some price in the area. It seems to me that for the same price in the same area you might be able to have triple the land on an older home. Obviously there are advantages and disadvantages on both options but make sure you weigh it all up and focus on the investment not the property
Originally posted by kingdavid:because it is a new home, duty is only paid on the value of the land… not the building…
so when Mirvac built the property, they have only paid duty on the land. when they sell the property to us, they will pass on the savings to us, which we will negotiate by how much…
[blush2]
If they are selling OTP new homes, I can’t see how you are only paying duty on the land. Are you settling the land first and then choosing your own builder or do you have to use Mirvacs? I would’ve thought there would be 3rd line forcing issues at play here but might be wrong. I digress. If you buy OTP, the developer has to factor in the cost of GST which is included in their sale price so you ultimately pay for the tradies and construction GST component. Similarly if you built a home yourself, you’d be paying GST on the construction material plus labour..etc.. which is considerably more than paying stamp duty on an established home. Plus you can’t claim the input tax credits for the GST paid.
Hence I’m not quite sure where the passing on of savings comes from. Perhaps I have analysed incorrectly all this building stuff.
210m2 says it all. Why buy a such a property when you can get another one for the same price with 700m2. Remember, land appreciates, buildings depreciate.
Neighbours will be very close and there will be a tiny backyard. Who is going to demand this sort of property in an outer suburb, especially in 10 years time after the house is not so new anymore?
Originally posted by shake-the-disease:210m2 says it all. Why buy a such a property when you can get another one for the same price with 700m2. Remember, land appreciates, buildings depreciate.
Neighbours will be very close and there will be a tiny backyard. Who is going to demand this sort of property in an outer suburb, especially in 10 years time after the house is not so new anymore?
Well, I believe the opposite, if I am going to rent out a place I would prefer the one without backyard and in a small place where I do not need to spend time maintaining it.
I believe small place are better for rent adn large for sell.
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Originally posted by clones:Originally posted by shake-the-disease:210m2 says it all. Why buy a such a property when you can get another one for the same price with 700m2. Remember, land appreciates, buildings depreciate.
Neighbours will be very close and there will be a tiny backyard. Who is going to demand this sort of property in an outer suburb, especially in 10 years time after the house is not so new anymore?
Well, I believe the opposite, if I am going to rent out a place I would prefer the one without backyard and in a small place where I do not need to spend time maintaining it.
I believe small place are better for rent adn large for sell.
Clones
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Do you have kids though? That suburb in Melbourne the key demographic are families. I have kids and believe me, I would never ever rent or buy a property that is so small, I don’t care if the place is gorgous with gold platted taps and a 100 inch plasma screen.
Having kids but no backyard is a recipe for parental insanity.
Well, that is why we are talking about a complex that offers solution for kids to play and so on. They do not have big backyards but the have community areas, pool etc
That is the difference.
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The net result is not so much lies, damn lies and statistics but rather vendor dreaming, buyer wishing and agent glossing.Originally posted by asdf:Originally posted by kingdavid:because it is a new home, duty is only paid on the value of the land… not the building…
so when Mirvac built the property, they have only paid duty on the land. when they sell the property to us, they will pass on the savings to us, which we will negotiate by how much…
[blush2]
If they are selling OTP new homes, I can’t see how you are only paying duty on the land. Are you settling the land first and then choosing your own builder or do you have to use Mirvacs? I would’ve thought there would be 3rd line forcing issues at play here but might be wrong. I digress. If you buy OTP, the developer has to factor in the cost of GST which is included in their sale price so you ultimately pay for the tradies and construction GST component. Similarly if you built a home yourself, you’d be paying GST on the construction material plus labour..etc.. which is considerably more than paying stamp duty on an established home. Plus you can’t claim the input tax credits for the GST paid.
Hence I’m not quite sure where the passing on of savings comes from. Perhaps I have analysed incorrectly all this building stuff.
i think 3rd line enforcing only applies when the seller isn’t the one enforcing. i.e. 3rd line enforcing involves one party forcing the buyer to build with x and buy the land from y.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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