One of the biggest problems with OTP is the strata – its a killer. Also there is a massive number of developments going up in Kuring Gai. Virtually at the same price you can buy land which is slowly disappearing in that area.

Regards

Shahin

I live in Gordon and think its a massive mistake to buy OTP in St Ives and surrounding areas. 

If you are looking in these areas – invest in land. The area is due for massive growth. You can pick up some really good buys around Turramurra. 

How deposit do you currently have?

I know you said you understand the risks associated with OTP but what do you believe they are? 

Regards

Shahin

Yes but the problem with this strategy is that the market is completely flooded. I am personally looking at fire damaged properties (which are harder to find) as the market is generally smaller. You being a carpenter will be able to tell which properties can be salvaged and which properties should be left alone (i.e. roof beams caving in,etc). 

Regards

Shahin

One of the most common curve balls is that valuations come back lower than the investor's expectation so it may be worthwhile (when you are ready to start buying) to do an upfront valuation. Most lenders offer this and it is free.

Regards

Shahin

1. Each bank/lender will have its own policy 

2. If you are ascertaining a Pre Approval  – make sure its a credit assessed Pre Approval and not a generic system approval

3. Pre-approvals last anywhere between 3 months to 6 months

I would be talking to a banker or broker about exactly what your options are. The figures above are fine – I would be looking closer at your situation (such as LVR, employment status, etc).

Regards

Shahin

Strategy is fine but I would run the numbers and see whether you want to use the entire $150,000 or some of it (i.e. do you go with an 80% vs a 90% LVR). 

Adding a Granny Flat would assist more in cashflow than it would for building equity but I would consider it as an option (or at least an option for somethign to do at a later stage).

An alternative strategy is to purchase 2 properties for around the $600k mark live in renovate both. You will be obviously sacrificing a level of lifestyle but I think its another strategy worth considering.

Regards

Shahin

Generally no but it depends on the area. What area are you referring to?

Regards

Shahin

What's the strategy? E.g Buy and reno? Subdivide, develop? Have you considered the possibility of buying 2 properties with $650k or even buying something at the $300k mark and then using the remainder of the money to develop? Make sure you crunch the numbers and have a strategy.

The inner west is probably second to western sydney in terms of traffic and activity right now. I have had 3 people go to auctions and not even be able to put in their bid.

Regards

Shahin

Generally its very risky and not for me personally.

Pros:

1. Buy at today's market rate (albeit some are over priced) 

2. Secure a property tody but do not need to settle until later say 1 or 2 years until the the property is completed

Cons:

1. One firesale in the complex and the valuation of your purchase will come down at the time of settlement

2. When valuation is done close to completion this could come back lower which means potential issues with settlement

3. Strata starts off relatively low but will increase rapidly as its a new complex

4. Don't know what type of finish you will get. The contract will have the actual finishes but doesn't show worksmanship

Regards

Shahin

Very nice – I was thinking laminate as well. 

Regards

Shahin