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840K IP in North Epping

Discussion in 'Where to Buy' started by bowfinger, 31st Aug, 2016.

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Hold or sell?

  1. Hold

    4 vote(s)
    100.0%
  2. Sell

    0 vote(s)
    0.0%
  1. bowfinger

    bowfinger New Member

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    Hi guys,

    Just after a bit of advice about what to do with an Epping Park investment apartment that was purchased off the plan a year ago. Before making the purchase I advised my partner than OTP properties aren't a wise investment as they incur a premium. I also advised that location is quite important (e.g., close to public transport, good schools, etc.)(not that I'm an expert in property investment - I just did a fair bit of research before buying my '70s investment unit).

    She had a different opinion and, trusting her R.E. agent, proceeded with the purchase (840K). Today the agent advised that the value has fallen to 780K, as the area is "full of properties" and the property itself is "far from station and shops".

    We're thankful it wasn't a bigger loss. The question is what to do now -- should she sell the property or hold? On one side I think she should hold, as most properties rise in value eventually. On the other side, strata fees are over 1K per quarter, which will increase as the property gets older. on the whole, I think she should should SELL, but again, I am certainly no expert in property investment. What do you think she should do?

    Many thanks in advance
     
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Where is this? NSW or Vic?
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    After having undertaken thorough due diligence & the decision to purchase, did they move the station, bus route, schools & shops? Nothing can be done now to improve these factors.
     
  4. Glorion

    Glorion Well-Known Member

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    Is it the mobbs lane merit in development? There's a ****e tonne of townhouses and units gone up in that area. It's not too far from Eastwood station, I used to walk there over epping station.
     
  5. Indifference

    Indifference Well-Known Member

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    More red flags than a Spanish bull fight yet despite contrary "advice"/opinion your partner trusts RE "advice".... what due diligence was done? Any? What was the intent of purchase... B&H, flip (sic) etc.? Expected yield vs actual?

    Surely an 840k purchase was based on something other than an REs opinion...
     
  6. kamchatsky

    kamchatsky Well-Known Member

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    Yes there is a ton of units up there. May be you should consider living there and keep it. It is a fair walk to Eastwood/Epping station.

    I remember walking into the Meriton showroom a couple of years ago and they were offering the 2 bedder for 790K. Everything looks so sleek and convenient, I just wanted to move in immediately .....
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I am guessing here is an example of buying in Sydney during a boom cycle and losing money, which is almost unheard of :(

    What is your annual loss net vs selling and buy in costs/ aka whats your payback on selling
     
  8. ashish1137

    ashish1137 Well-Known Member

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    Also, if you are yet to get it financed, please be advised that the valuation will come out be lower.

    Are you in a position to pay the difference?
    Would you be able to pay the differential of 60k plus additional 15-20% plus lmi?

    Regards
     
  9. +men

    +men Well-Known Member

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    Why would your partner trust advice from RE agent rather than yours?
    it is an expensive lesson to learn
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    :eek: what do you mean that you can't trust an rea?
     
  11. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    At least its not Gladstone or Moranbah. This place should find a reasonable tenant if she holds at least. And yep... she was suckered in by an Agent selling a property... agent got the result...
     
  12. mikey7

    mikey7 Well-Known Member

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    There's a heap of development happening in walking distance to Epping Train Station (NSW) at the moment. Carlingford Road, Epping Road and Blaxland Road are all examples. Lots and lots of apartments.
    And other stations close by like Eastwood.

    North Epping probably wasn't the best place to invest in an apartment, but the population just keeps growing in the area so you shouldn't have much of an issue renting it out.

    If it were me, I'd hold onto it and ride it out.
     
  13. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Ps. I would like to clarify... i'm 99% sure its not "North Epping". Because "North Epping" doesn't have this sort of development... if there was any development in the suburb of North Epping it would be a small boutique townhouse style complex. There's a handful 1 br units but these are the only units I know in the suburb and they have been there for over 10 years.

    Now if i'm wrong and there is some big development in North Epping... i'd be willing to learn about it cause it would be news to me. Never seen them advertised anywhere and I've pretty much tracked everything listed for sale in the suburb since 2007/8.
     
  14. mikey7

    mikey7 Well-Known Member

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    I haven't seen any bigger developments up their either, and I frequently drive up there.. but some councils are approving some massive developments in ridiculous areas so wouldn't have surprised me.
     
  15. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    This is from my old home in North Epping.... kookaburra family. Also we'd get king parrots frequently visiting... they were even happy to come up on your arms. North Epping is not an apartment suburb in any way, shape or form.

    Its just a family and nature friendly destination shielded away from the Sydney hustle and bustle.

    45219_439348830856_6277589_n.jpg
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    North Epping is an isolated pocket tucked in between the M2 & the bush (in red circle)
    The Mobbs Lane developments includes the old Austral Brickpits & Channel 7 sites well to the south and ringed in black.

    upload_2016-9-1_0-2-40.png
     
  17. bowfinger

    bowfinger New Member

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    Hi guys, many thanks for the replies.

    Kamchatsky - yes it's very easy to be lured in by the showrooms! So you think she should keep it? I've always thought one should buy property and ideally, NEVER sell it, but in this case, I'm just worried about the increasing strata fees. I guess it's comes down to her cash flows - assuming they're healthy she can hold and ride this out until/beyond the next boom

    DaveM - We'll crunch the numbers this weekend and work out what to do

    Gockie - She hasn't had trouble finding tenants so far. That's one thing that's reassuring. PS - love the old home

    Mikey7 - That's a great assessment. Thanks for that. Would you still hold and ride it out in spite of the high strata (currently 1K per quarter) and possible rate increases in the coming years?
     
  18. Glorion

    Glorion Well-Known Member

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    Yeah i'm confused, is it north epping or Meriton's epping park?
     
  19. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Must be Meritons Epping Park.
     
  20. kamchatsky

    kamchatsky Well-Known Member

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    How much is it rented out now, and what is the current strata fees?