How to save $100K on a new apartment

Has also the nerve to say it is better in Israel.....tell ya what, well off ya go, don't let the door hit you on the way out, surprised there was no paragraph on how nice they all are to be able to provide so many with a place to live/rent, doing us all so many favors and all.

 

Rumour has it that particular developer, who is also building quite a lot at Baulkham Hills, Carlingford and Merrylands , has a deal with a 3 letter company who put options on the whole development and flog it to Chinese buyers - well, Im hearing from more than one commercial funder that it's all starting to come apart at the seams. It seems ( excuse the pun) that if the rumours are to be believed, that over 150 of their settlements have crashed recently and the 3 letter company is on the hook for the money and is busily trying to secure some Singaporean and malaysian funding in the mid 7%'s as a rescue package.... But Im also hearing that developer is, as a result, no longer able to get money to develop... the banks have cut them off for any future projects, for the time being at least. So I dont expect Parklea Markets to have anything done with it for some time.

Of course...this could all be BS. But Im hearing it from some fairly serious people

 

Im in Brisbane tonight and every trip I make, it never ceases to amaze/concern me how much oversupply is currently being built.

At least Sydney and Melbourne each have double the population (and triple the jobs) to soak up the supply.

Perhaps Brisbane's oversupply "silver lining" though is that this city is far less Chinese-favoured that the southern ones. This has helped keep a cap on unit pricing here to a degree. The local largely blue-collar workforce/market can only bear so much, price-wise. $600K studio dogboxes in far flung suburbs simply will not be tolerated here.

You can get brand new studio dogboxes in inner Brisbane suburbs for low 300's now. Sure there is oversupply up the wazoo here, but at least it was mostly priced at what the local market can bear...

 

.....its only the start........even the established property is in the way of this coming Tsunami.....I personally think the correction in Sydney will start in OTP...which will spread to established market...there is not rhyme or reason....just the usual human greed and herd mentality.

Better take your equity out...before the banks shut it down via much lower valuations in Sydney.

I am also hearing the way it will start is when banks call in loans from developers to manage risk or not provide any more funding...it is about to get interesting...Sydney and the inner Melbourne markets are the most exposed.....

 

Had a quick look at one of the developments and the supposed project cost, it would seem that on this project in Sydney the developer could cut price by as much as 50% and avoid the red, my calcs were crude.

What profit would they be working on in Syd vs Bris ?

 

I'm cracking my head trying to figure out who the 3 letter company is !

 

Give me a P. Give me an I. Give me an .....?

 

Oh really? That's the one that we narrowly avoided. Their selling method is interesting. We just got back our $5000 after 2 years

 

They are at Essendon DFO as well.
How good is that place! You can save $50 on denim and $50,000 OTP.

 

The last time i looked, this particular development has a HUGE "FOR LEASE" sign hung right across and top down the building..i am talking about at least 15-20? high..the sign....

Hmm........

 

Hey virgo are you now cashed up to buy a few of these apartments from your friends? The potential issue I see is the rental vacancy due to oversupply in some areas and that puts pressure on landlords.

 

If i am not wrong, they are also building , imho the 2nd ugliest apt block in Sydney too..this time with window views fronting quel horror! Pennant Hills Road! ( near K13 sign between James Ruse School and Carlo court)..man..the colour coordinator for that block needs to be sacked!

Incidentally, that short stretch of Pennant hIlls Road between James Ruse School and Carlingford Ct will be a car park in a few years time...apt developments left and right! And it is already congested as it is, narrow 2 lane and bottleneck turning into Marsden Road...

 

It's already a car park atm!!! I have to agree the blocks at Windsor Rd and the one at corner of adderton and pennant Hills have no character. I suppose the devo believed when you build they will come?

 

Are you a buyer or a seller?

I have another friend who has paid 900K for a 2 bedder right on top of Castle Hills Station due next year...

i wasn't sure what his original intention was..but i know he is now saying he has to sell his North Shore home...

So he gets what 1.4m ? 1.5? and he moves from a large 4 bedder on biggish land to a small 2 bedder (family of 4 wahhh...) ..what with selling fees and strata..hmm.. therein lies the disconnect of house and apt values i think.

So as it comes nearer to end 2017...there may be a few similar stories...perhaps he should sell now when the market is hottish..but his inertia strikes...

So if my properties' values drop , sure i won't be happy...but end of the day, am i (and you) a buyer or a seller? Chew on that!

 

I don't own apartments but will consider if apartment prices are attractive. It's a waiting game.

 

I am cashed up ready to buy...my "intention" though is to buy for my kids ie long term..and (slight cough !) i am able to HOLD..that is the important part!

Main problem is with these generic, similar looking apts, it only takes ONE desperate landlord to blink! and the rest will have to follow in terms of both rents and values! Strata is the killer !

 

Hey! At the end of the day, i may be wrong..and Sydney prices shoot up again ...

grumble grumble...i guess it will be ok then for the rest of my portfolio..win win!

Back to the question: are you a buyer or are you a seller?

 

Are you a buyer or seller? my eyes are always on the north west market.

 

Wait...and if u really want to buy an apartment then offer 40% less than the asking price !

 

i like your style oki doki... gave me some idea...