Hi Shahin.

Thank you for your valuable insight into the local area.

I understand the area is booming in terms of medium density developments but what I don't understand is how these developments end up selling out?Or aren't they selling? In your experience, are people buying into these developments as a cheaper entry into the affluent North Shore, but in doing so buying at a 'North Shore Premium' and instantly losing value in the property once they decide to sell. How am I able to get the 'Real Value' of property? I notice these websites etc offering paid valuations of the property or area but is anyones valuation trustworthy? 

I do most of my searching on realestate.com.au. I don't seem to see many land offerings around the North Shore. 

I guess I am way behind in my knowledge and research. 

Hi Michael

Thank you for your post.

I understand the risk in OTP purchases and have thought about the increased supply of units in the area I wish to invest. 

St Ives was once a very traditional North Shore Upper Class suburb with High barriers to entry for buyers. As of the past 5 years, units and development have risen heavily, Although the area still remains very affluent. 

If I was to negotiate an excellent purchase price, maybe something in the line of 10-12% off the asking value- I would be a lot better off in terms of a short term fall in the value of my property as more units etc are built and offered?

If I have a look at DA's in the area and find out that further unit developments are not planned- this could suggest a steading of supply and a longer term capital gain as unit demand in the area is hopefully steady or rising?

In response;

– Your financial position and capability- 21 Year Old – Will be in a full time, High paid Mining Career end of 2013

– Experience- No Experience with Prop Investing

– Risk tolerance- Medium Tolerance to Risk

– Support ( family/ financial )- Good family for support both emotional and financial

– Short/medium and long term goal- Short Term- Get into property market at a good price- Medium- Lease for rental returns paid into my Mortgage- Earn high income from job and pour a lot of capital into my mortgage – Long term- Refinance to purchase more properties. 

– Comfort level with investing- Comfortable. 

– Tax- Soon to be high income earner with Professional mining job.

– Capital gain tax/ Land tax- Not looking to sell first property for a while

– Where you are currently in your "life cycle" -ie expecting kids? marriage?- Single, No Kids – 21 

– Stability of work- Stable career so far- Mining could potentially be unstable though am confident of earning high figures for entire career. 

Katie