Hi all,
I’m looking at some off-the-plan apartments in Rhodes for investment (mainly due to tax benefits etc).
I have a couple of question hoping someone can shed some light on:1. The main one I’m interested in is built by a developer called “Billbergia”, are they any better than the notorious Meriton?
2. Rhodes apartment prices havent increased all that much during last few years, why’s that? Is it because the “remediation” work? or something else? Because I thought with it’s shopping mall and close proximity to water and CBD should be pushing the prices up and up…
3. Re. buying off-the-plan apartments in general, how many years can you claim depreciation for?Many thanks in advance!
I will be meeting up with these guys later this week – PM me.
hi~~ I have some scenario think u might interest to know. I have a friend she brought an apartment over in Rhodes close to the railway. The chemical smells so badly, and toxic she said, every time when the wind brings over that smell, she have to shut the window, and of course she cant left the window open becuse of that. So she end up sold it because of health issue… I lived with her before, so i know how badly that smell is. Other than the environment, the facilities and building and design was great! i like it. But not the smell. >.< What i know is there are so many oversea students, and asians rents over there. As you said, the price didnt increase these years, is it because of environmental issue? I would like to know as well.
Hi newbies,
I've said it before and I'll say it again and I stand by it:
Personally, I would never buy off the plan or buy brand new apartments. I will buy, if I have to, one that's at least three years old. Depreciation schedule is still healthy, hence there's still that hefty tax deductions; but remove myself from the pains of discovering construction building kinks. In this case, discovering that the surrounds stink.
I really reckon, in three years time, if the building is badly constructed it would show by this time. If walls were going to crack, it would have already cracked. If buildings are badly made, all owners are required to put money in, called sinking funds. Research the issues surrounding REGIS TOWER. It will frighten the living daylight out of you.
The owners of REGIS TOWER have been mainly high powered professionals, many are silks (barristers, etc), and they still can't bail themselves out of this quagmire they found themselves in.
Brand new apartment will always be more expensive, precisely because of the depreciation. The price remains stagnant for a few years before capital gains kicks in.
If you are buying mainly for the depreciation – you're buying for the wrong reasons. There are better ways to minimise tax.
Take care.
Angel
Hi all,
Lots and lots of mortgagee in possession in Rhodes. If you're keen to buy there, homersyd, you might bag a bargain at the auctions.
Take care,
Angel
Hi Homer,
I did a trip out to Rhodes this morning to check out the Billbergia apartments (as well as whatever else was happening out there). Billbergia, from my initial contact appears very legit (currently selling Homebush off the plan and another one at Rhodes shortly). They have been around for a while, having completed a project at Lane Cove North which does not appear to have a bad report.
The surrounds have basically been remediated – Meritons appear to have finished their works as well – this involved burning the contaminated waste to remediate it and this was giving rise to a chemical odour in the area. Meritons are known for taking the most cost effective way to complete their works so, their quality standards are not the same as those of other developers in the market.
As Angel above points out, Regis Towers is a nightmare (it may even have been done by Meritons but you'll need to check).
There is generally no capital growth over the first few years after purchase of an OTP unit: firstly due to the development margin puts the property above other properties in the resale market, secondly buildings depreciate so it will take a few years for the shine to come off the building and the price to stabilise (balancing out the developers margins) and thirdly unless you have also recieved stamp duty concessions, it will takelonger to break even on the sale.
PM me and I will give you more info.
I did a trip out to Rhodes last week to check out the Billbergia apartments. I have a friend she brought an apartment over in Rhodes close to the railway. The chemical smells so badly, and toxic she said, every time when the wind brings over that smell, she have to shut the window, and of course she cant left the window open becuse of that. So she end up sold it because of health issue… I lived with her before, so i know how badly that smell is.
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