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$420K 2 bedrooms apartment in Sunnybank Qld

Discussion in 'What to buy' started by tom, 23rd May, 2016.

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  1. tom

    tom Member

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    hi Everyone.

    I know that Qld is now on the hype and apparently will catch up Sydney and Melbourne in near future, especially popular asian/chinese area such as south bank, new farm, sunnybank, etc.

    apparently I have been proposed to buy an off-plan $420k apartment: 2 bedrooms, 2 toilets, 1 car park and the location is just 200m away from Banoon train station, the builder promise us the completion day will be early 2018. this is my first property and I'm happy to hear your 2 cents.

    cheers!
     
  2. EN710

    EN710 Well-Known Member Premium Member

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    @tom $420K for an apartment in Brisbane sounds like poor value to me. You can get houses on the north and a bit further south with that amount.

    Why this one?
     
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  3. HUGH72

    HUGH72 Well-Known Member

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    Is this in Lister street?
    I know nothing about this development but my initial thoughts would be that you can do better. The market in the area is presently strong but it's primarily a house/townhouse market.
    Come settlement in 2018 there most likely be numerous other investors looking for tenants.
    Have you looked at many comparable properties to determine if its reasonable value or is there a fair slice of developer's magin built into the price?

    Who knows what the unit market will look like in Brisbane in 2 years but I would rather not be holding onto one if I could afford a house.

    This suburb in terms of houses has already grown >20% in the last 2 years, if I was buying now I would expand my search outwards from there as it is probably too late in this suburb IMO.
     
  4. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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    Run!
     
  5. tom

    tom Member

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    because of the location - i dare say will be very easy to lease out once it done. plus we don't have to put down a huge amount of money for deposit only $40k (10% of total value) for now and the rest 10% will be pay when it finish (early 2018).
     
  6. tom

    tom Member

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    it's in troughton rd indeed.

    the reason why i choose apartment because it's easier to lease or sell to youngsters. chinese community present strongly here and their kids won't be able to afford the house, plus chinese wants to stay close to their parents.
     
  7. thatbum

    thatbum Well-Known Member

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    Yeah but you could also buy established property with 0% now, and then whatever deposit you need in 2 years time.

    The best advantage is not having to lock yourself into some contract you have no control over for two years before you (hopefully) settle.
     
  8. tom

    tom Member

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    can you be more specific about this? I had no idea of buying established property with 0% deposit?
     
  9. thatbum

    thatbum Well-Known Member

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    Sorry, I wasn't clear before - but I meant just not buying anything for 2 years. Almost certainly a better option than an off the plan contract now that settles in 2 years anyway (if it settles at all).
     
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  10. Marg4000

    Marg4000 Well-Known Member

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    Why would you buy a 2 bedroom unit OTP for $420K in Troughton Road when you can buy a 3 bedroom fully furnished townhouse in Dixon Road at a list price of $425K?

    Probably even get a rental history.
    Marg
     
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  11. Hung

    Hung Member

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    EeeK. Don't do it! Use the search function and research about buying OTP
     
    Last edited: 23rd May, 2016
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  12. cheekykoon

    cheekykoon Well-Known Member

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    It's the cornerstone estate alright. The townhouses are better value. Lower body corporate as well.

    The market is soft now.
     
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  13. tom

    tom Member

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    definitely some wise words
     
    Last edited: 23rd May, 2016
  14. PandS

    PandS Well-Known Member

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    I say QLD won't catch up, the money already start leaving the market last week
    watch this space
     
  15. jaybean

    jaybean Well-Known Member

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    Watch this space - will do.

    I just want to quantify this for when I return to you in a few weeks, so there's no wiggle room.

    By "money" you mean all money, not just apartments? And you mean all of Brisbane, not a particular market? And watching this space - a few weeks will suffice? I'm assuming you're alluding to some huge announcement we'll all read about in the media.
     
    Last edited: 14th Aug, 2017
  16. PandS

    PandS Well-Known Member

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    A lot of our properties rise are due to Chinese money, they drive properties price to unstainable level and lure more people into buying thinking it can only go up.

    A worrying development happened over the last 6 weeks, the government now step up and force people to take money home and stop capital flowing out.
    That means selling out of the projects and stop developing projects and not buying more into it.

    As Beijing gets tough Wanda tests market for $2 billion Australian exit

    "Chinese property buyers are turning away from Australian housing as efforts by regulators in both countries to slow investment begin to bite.

    Chinese buyers, who make up about 80 per cent of all foreign property purchases in Australia, have grown wary after being hit by Beijing's tightened capital controls, local banks restricting lending and growing fears of an over-supply in the capital city apartment market.

    The drop-off in Chinese demand for Australian property marks a noticeable shift from just a year ago when buyers from the mainland were seen to be dominating apartment purchases in many inner city suburbs.

    "It was just 12 months ago that Australia was the hottest thing at Chinese property exhibitions," said Scott Kirchner, a Shanghai-based director of Beller Group, a real estate agency.

    "Now Australian developers are not up here pushing projects and Chinese agents have no appetite for Australian property."


    without Chinese money, there is no appetite for high properties price and could have a cascade effect on price,

    Remember Gold Coast in the 80s where the Japanese buy up Golf club and resources, apartments, hotels and drive price to crazy price and made a lot people a lot of money along the way, well the people who sold to them made a buck load, not so lucky for those who bought in after the frenzy.

    the Japanese eventually lose that appetite and sold up and take the money home what happens next is not too pretty
     
  17. jaybean

    jaybean Well-Known Member

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    Fair enough, I'm aware of what you're talking about. A relative is looking to sell and the buyer is facing the same issue of getting capital out of China. I'd wager the impact on Brisbane is going to be less than most other cities.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    I argue Southbank (Qld) and New Farm are totally different apartment markets to Sunnybank/Robertson/MacG.

    The Y-man
     
  19. Tom Rivera

    Tom Rivera Property Manager Business Member

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    The other issue is that it's almost impossible to get finance for OTP purchases right now, and the only lenders offering solutions are generally doing so with unfavorable conditions. This is a brand new product to the Sunnybank area and it's risky. It's also being built in an overall market that is expecting unit and townhouse style dwellings to continue going southwards. You'll probably need much higher than a 10% deposit if you can find a lender.

    I think it's far far far too risky for a first property purchase.