VIC Mt Atkinson- First Release

Discussion in 'Where to Buy' started by Guy_Incognito, 13th Nov, 2017.

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  1. Guy_Incognito

    Guy_Incognito New Member

    Joined:
    13th Nov, 2017
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    Melbourne
    Hi Everyone,

    First time poster, long time lurker..

    My goal: looking for an investment property that would be attractive to renters and has strong capital growth potential.

    I've had a bit of luck leading to my current situation..
    • Put my email down to get news on Stocklands upcoming estate "Mt Aktinson"
    • Sales person calls me to advise of registering for their Eventbrite EOI to obtain a ticket to attend their sales day in November. If successful, I will be attending to pick a plot from their stage 1 release.
    • Several thousand applications, only 84 tickets will be allocated- First in best dressed
    • Eventbrite EOI becomes live at 10am 11th November. Sells out in 10 seconds
    • I managed to nab a ticket, and have been invited to attend their sales day next week
    Link to Mt Atkinson Masterplan Flyer:
    http://click.corp.stockland.com.au/...e9b74f7a759b79c23cb1e27b666135670acc4354a3e1f

    Link to Mt Aktinson Release Plan:
    https://www.stockland.com.au/~/medi...Downloads/Mt-Atkinson-Release-1-Optmised.ashx

    Link to Mt Aktinson Public Price List:
    https://www.stockland.com.au/~/media/residential/vic/PDF-Downloads/Mt-A-public-pricelist.ashx

    Settlement will be in April/May 2019

    If I make a selection next week, this will be my first real estate purchase. So at the moment, I am unsure whether I will be making the right decision.. Some questions I have are:

    1) For those that have gone through a similar experience with buying land in other estates, what are the "watch outs?" Avoid lots with easements? minimum frontage?

    2) What are the MUST ASK questions during the sales day when picking a lot?(..and signs to run for the hill!)


    3) Given settlement is not until 2019, I wont have money tied up to this land other than a small refundable deposit. Could I simply pick a lot on the day and simply sell it for a little profit in 2019, if other opportunities presents itself along the way?

    4) And more broadly, do you guys think buying land in Mt Atkinson, building and renting out to tenants is in line with my goal? I am getting advice from others to buy something that exists already instead

    I consider myself fortunate to have an opportunity like this, but I am also unsure on the best way to proceed. Any words of advice will be appreciated. Cheers!
     
  2. saray4

    saray4 Well-Known Member

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    Don't you have to pay 10% deposit which is non-refundable?
     
  3. Guy_Incognito

    Guy_Incognito New Member

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    I've paid a refundable $5K appointment fee to attend the sales day
     
  4. Madcatters

    Madcatters Active Member

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    The developers must be making a lot of money selling 350m2 blocks for $300k in the middle of nowhere
     
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  5. Guy_Incognito

    Guy_Incognito New Member

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    The 350m2 blocks are going for $275k
     
  6. saray4

    saray4 Well-Known Member

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    But it's just an appointment fee. Once you decide to buy the lot, you should sign an unconditional contract with 5-10% deposit which is non-refundable.
    Better check with the sales person once again.
     
  7. albanga

    albanga Well-Known Member

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    I would say NO it doesn't align with your goal. What you have described is a property in a blue chip suburb, not a new estate in the West of Melbourne.

    OK let's look at your 2 goals.
    Attractive to Renters = You will build a nice new house so that's a bonus but apart from that what makes it an ideal place for renters? It's brand new! That means no established infrastructure, no established business and no established schools. Why would a renter find that desireable? The people who buy in new estates are owner occupied home owners, not investors!

    STRONG capital growth = Bad again! It's in an area with 5,000 lots and surrounded by vacant land which is constantly being chopped up and made available. What is property 101? What drives house prices? The answer is scarcity. Do you think a properly with an abundance of land is scarce?

    Just because the sales sold out in 5 minutes doesn't mean it's a good investment. They have been putting together their mailing lists for ages and use it as a sales technique. Let me ask you, you feel you won the lottery when you got to pay 5k to be part of this "exclusive" sales conference right? You feel as though you would be crazy not to buy given how lucky you got??

    If a new estate in Truggenia is what you believe to match your goal then I would reccommend you probably need to do a lot more research on property investment.
     
  8. Guy_Incognito

    Guy_Incognito New Member

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    Thank you for your reply Albanga.

    My next purchase is for investment purposes only. And I want to adopt the "buy and hold" strategy, hence the LONGER term potential of Mt Atkinson appeals to me:
    • Yes the infrastructure is non existent, but there will be shops, schools, train station, town center down the track, adding to the property's attractiveness and capital growth
    • Yes there is an abundance of land- but that wont always be the case. The people that bought in Point Cook during the first release would no doubt enjoyed 'first mover advantage' compared to land releases many years down the track.
    Is my thinking oversimplified and too optimistic? Happy to get feedback

    You make an interesting point on the people who buy into new estates are owner occupiers, not investors.. Does anyone have a differing view to this?
     
  9. albanga

    albanga Well-Known Member

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    My concern for you would be you don't really have a strategy and what strategy you do have is simply wait it out and see what happens.

    Do I think long term that Mt Atkinson will have the infrastructure to make it more desirable to renters, yes. Do I think long term that the surrounding land will no longer be available, yes. Do I think long term Mt Atkinson will appreciate in value? Yes
    Do I think their are literally hundreds of better investments that will result in a far greater financial outcome in that time. Yes

    Yes Point Cook has appreciated in value but so has almost every single suburb and by considerably more. It won't take you long to compare the growth in Point Cook versus many other blue chip locations.
    And whilst on Point Cook I know someone who purchased land and sold for a 100k loss as when land settled developer had very strict building regs and had to sell.

    I haven't even begun to talk about issues as well with house and land packages from a finance and construction perspective.

    I'm not trying to be harsh just give you the reality of your strategy. I'm not saying it might not be profitable I'm saying you really have no idea if it will be and that's not investing, that's speculating. If you want to do that then keep the 5k and bang it into Bitcoin. It will be far less headaches.

    If you want a more controlled outcome then do your research, purchase established, purchase in an established location that has already been developed which the infrastructure in place that is starting to gentrify.
    I have spruiked these forums for a long time on Melbournes West to North as extremely affordable and undervalued real estate and every suburb has performed exceptionally.

    If I was in the market I would be putting my money now into Broadmeadows. For the price you plan on paying for house and land you can buy an established property on a development block.
    It's not speculation I know which property will perform better over a 10 year hold.
     
  10. Luca

    Luca Well-Known Member

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    1) 2019 settlement - mate, a lot of things can change in 2 years
    2) How much is it going to cost H&L? Are you sure you cannot find something better established? Keep in mind builders will not hold prices for 2 years
    3) Atkinson was marked very well and you are actually paying for that.
    4) At that price point, is Atkinson the best estate to buy in? Did you notice the HV line and industrial area being built?
    5) Let`s say you have 450k to invest (minimum at this stage as land is at least 250k and building 200k). Better to wait hoping the prices will go up or buy something for let`s say 350k in Brisbane (just an example), put a tenant in and get a 7% yield and maybe within 2 years buy another property with the equity built?

    Talking about new estates in Melbourne, crazy things are happening. What you pay 250k today maybe will be 500k in two years, who knows. If you are keen on H&L, there are heaps of posts from people who did well.
     
  11. private_number

    private_number Well-Known Member

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    Personally, I would not invest in an estate in the middle of no where for capital growth and rental return. Why? To me, these estates are designed to attract first home owners and families and NOT renters. When would I invest in a land in the middle of nowhere? When I can be financially capable of land banking.

    Put yourself in the mind of a renter. As a renter, why would you want to rent in the middle of nowhere whereas for the same, if not a little bit extra cost per week you can be closer to the city and be closer to amenities/infrastructure,.

    Assuming you have the capabilities to buy now, why not invest something in a high capital growth region and have a rental income in said property that will assist you with your repayments right now instead of waiting 1.5 years for settlement + 6-12 months construction?

    That's at least 2 years minimum before you'll get some money in your account via rental income or sale of said project if you take the second approach. And if you pay the 5-10% deposit with a 1.5 year settlement, you've locked yourself in and you will not be able to do anything for 1.5 years. However, if you take the first approach and you've made a good investment in a hot region you can not only keep the first property, but think about investing in another in the same 1.5-2 years.

    @Guy_Incognito , I was actually faced with a very similar situation to you when I was ready to buy my first property at the age of 21. I decided against buying in a new estate (Williams landing) for the above reason. I instead invested a little bit more money in a property closer to the CBD with no regret;. I've ALWAYS had a tenant in it, I've had remarkable capital growth (greater than I would have if I bought in Williams Landing) and it actually is one of my best performing properties within my portfolio.
     
    Last edited: 14th Nov, 2017
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