I need some advise about buying newly developed apartments or OTP apartments within approx 15km of the Melbourne CBD (not southbank more towards Camberwell, Kew, Hawthorn etc etc)
From my research most property investors seem to advise for people to stay from buying newly developed apartments. There must be a scenario that makes buying new or OTP a ok investment and over time I am sure it would be a good investment.
Can anyone suggest what a such a scenario may look like so that I know what I should be aware of when I go talk to these people.
What do I need to look out for?My thoughts are as follow
New or OTP apartment
within 10km of Melb CBD
no more then 2 or 3 story (keep the body corporate down)
price to be within the market???
good depreciation scheduleHi Luci
Here’s a similar thread that was created recently that might help (it’s not Melbourne specific but it does regard OTP purchase) – https://www.propertyinvesting.com/forums/property-investing/help-needed/4335329
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie thats a good start and ill do a search in google for the pros and cons.
Still hope to hear from people who have had some experience in this area
thanks
Another thread with a few comments
https://www.propertyinvesting.com/forums/getting-technical/finance/4335330
I guess it would depend on what your trying to achieve, new apartments have plenty of depreciation to claim
Who can provide independent advise?
HI Luci,
Most long term OTP very risky in my opinion without suitable 'out clauses' for purchaser and when the market has recently performed quite well, which Melbourne generally has.
A few questions for you to consider;
1. why are you specifically looking at those areas?
2. how long before the properties are completed?
3. what percentage of the properties are being sold to owner occupiers V investors?
4. are there major local & state government plans for the area?
5. proximity to train stations – Melb is a tram/rail city. Proximity may also negate the need for multi car spaces.
6. living space & size of units?
7. vacancy rates in the area for similar property?
8 how many other similar projects in the pipeline for the area?
9 proximity to shops & schoolsA few questions to goon with.
As per your initial post & FYI – new/OTP properties will have a decent depreciable percentage in them. Still recommend getting an independent QS report done.
Do you intend to sell prior to/@/near completion or hold for several years? Both having different outcomes depending on your investment strategy.
I would like to hold the property for a cycle of about 5 to 7 years, I see my self as more of a buy and hold and wait for capital growth. It would also depend how much i need to put in to top up the rental payments.
Derek wrote:HI Luci,As per your initial post & FYI – new/OTP properties will have a decent depreciable percentage in them. Still recommend getting an independent QS report done.
Just wondering what an independent QS report is and who can do them?
thank you
Hi Luci
It’s a depreciation schedule carried out by a quantity surveyor. Basically, a depreciation schedule provides a list of items associated with your IP that can be depreciated.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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