Infinity @ Green Square

http://www.domain.com.au/news/buyer...ralias-densest-neighbourhood-20150829-gjakkv/

For a building w/ 326 apts..... buy a $1.3M 2 bd unit and rent out at $800pw? or a $1.56M 3 bd and rent out at $1200pw?

 

Dang...some people are gonna get burnt

 

They sold $100m of property today in 1 hour

 

If I read correctly 2019 is the completion date.. long time away!

 

Cool looking building

Cliff

 

Crown are experts at realising incredible profits on their projects by buying the land well. I was told by some of their intoxicated team (both in sales and marketing) at a functon that 60-70% is common.

Most developers are lucky to manage 30%.

They have their target market and branding down to a tee.

Not only that, they also offer management which many buyers opt for.

Smart operators.

Perhaps not so the investors.

Beautiful building though.

 

yeah..crown are no fools. The people who bought- maybe. I like that story about a 2 bed apt going for 1.3 mil...and the buyers musing, after the fact, if they paid too much.
I don't think itll crash when rates rise/slowdown, but rather flat or a minimal decrease and will last for quite a few years. Those buyers will see minimal CG 3-5 years after completion and get fed up of the high opportunity cost and will look to offload. That's when it gets tricky as it is no longer deemed new and the market will automatically decrease by a bit.

 

@WinDyz. & @sash this ones is the King for OTP apartment which overtakes the West Point apartment in Parramatta that you love to own ....

 

Yep...I will own some of those when people can't settle due to val issues in another 203 years.

 

Recipe for Ass Whooping...

 

Lol Looking @ those buyers... majority of them are either comes from wealthy parent which can back them up in settlement, or overseas investor who have cash lying around.

The developer is indonesian and I know that they're marketed this product in Jakarta where the rich people lives.

1.3 millions for 2 bed luxury apartment in Sydney is cheap compare to what you can get in Indonesia (Jakarta).

 

Personally I couldnt think of a worse investment than OTP stock, in general. The pricing and likely rental return ratios on this one are particularly.. yucky. No thanks.

 

Yep...lots of foreign money has bankrolled local buyers.

 

Local shouldn't be buying this kind of products anyway.. too high risk and way too over inflated.

 

Correct. But OTP in Australia still have an attractive return compare to what they get in their own country.

 

Yes. I suspect the foreigners and providers of foreign capital to buy these things compare it to what a similar product in a similar location in their own countries more so than Australian asset comparisons and Australian location comparisons.

 

OTP in the news again:
https://propertychat.com.au/community/threads/otp-in-the-news-again.3472/

 

By the look of that queue, it looks like they flew in a plane load of Chinese investors for the slaughter?

$1.3mill, with a rent return of $800p/w?

bwhahahahahahahahahahahahaha

(Sorry; that's a bit harsh, but jeez; it's still hilarious)

 

I think the article mentioned only 30% were overseas potential buyers. The rest, I suspect most of the que in the pic, are either Perm residents or citizens. Where they get their money from is an entirely different question.

 

Bayview,

You'll be surprised that lots of overseas investor (Particularly those who come from asian country) will found that 1.3 mill with $800 per week return is Significant enough for them to justify.

Just coming back from holiday overseas in Jakarta... On average property in Jakarta is returning ~0.5-1% gross rental return.

My parent is renting a 4 bedroom house in north of Jakarta (roughly cost around 900k AUD) and we're paying 8-10kAUD a year.
Note: Their interest rate is 12-15%, and they're mortgage duration is 15 years.