VIC My apartment has been valued by the Bank!!!

Hey Guys,

I just had my PPOR (Apartment) valued by the bank and here are the results:

• Purchased for 490K 1.5 years ago, off the plan.
• Today's Result - 1 Bank: 580K and another 600K.

My conclusion, thank you, Jesus.

Anyone with an apartment that has seen some gains?

 

First up congrats, it's a great feeling to create something from nothing.

I think anyone who has enjoyed a property cycle growth phase would have, typically growth happens in a 2-year cycle out of 10, for example.

 

A positive outcome seeing as it was off the plan.

 

OTP with growth prior to settlement, and didn't get sunset clause'd - congratulations!

 

even if they are strata scheme, if your contribution factor entitles you to larger share of land, yes prices can appreciat with land value. for this i always aim for low rise/density units and NEVER buy high density flats with lifts.

 

Bought two 3/2/1 townhouses in a complex 4 of for $580 otp .... before completion one of the others resold for $650.

That was 2 years ago, so pretty happy

 

Praise the Lord

Congrats

 

One in a lifetime boom time, good to be invested, doesn`t matter what!

 

Also good time to offload lemons and move on

not saying this is a lemon, but I certainly think we have seen superior growth in houses over units

 

You'd expect that though, if the build goes according to plan, right? A completed apartment is worth more than one that doesn't exist

 

Considering its an OTP apartment, its not at all uncommon for it to be worth less than the contract price when completed or have minimal growth. It happens all the time.

 

Prices fluctuate. I'm saying that you should expect the value to go up, not because of growth, but because it's intrinsically worth more as it is completed. Imagine if the price is the same. You've had to live somewhere else while being built and you've undergone risk. You haven't broken even - you've lost money.

 

Congratulations

I sold my apartment a few months ago at 1.5 times the original price. I'm really happy and will continue investing in properties.

 

Price only goes up if the demand is higher than supply at a particular price point. Doesn't matter if its new or not. Many OTP units are worth less than the paid price upon completion. That's not value going up to me. I'm not saying that's the case every time. But it certainly happens a lot.

The market doesn't care what risk you have taken on or if you lost money. That has no influence on price.

 

What someone is wiling to pay for a property is governed by supply & demand. Often (but not always) OTP are overpriced to start with, and there are a lot of units in the block, creating a lot of supply, but not demand, so it is not unusual that on completion they are worth less, sometimes a LOT less than you paid.

 

I thought OTP was priced lower, that's been my observations. That's because people are not as interested in an OTP property compared to an already built property.

 

OTP are new developments so first off they'll usually be priced at premium developer prices. Then many times OTP units are amongst massive supply. Then you have time delays, tricky contracts and shody building standards.

All up, I'd never touch an OTP unit ever.

 

It can be a hit and miss! I had one apartment that sold at a loss (it was a lemon! No growth due too much supply in the area) and I’ve held one apartment that’s gone up in value due to its proximity to new infrastructure (both were OTP purchases) - however, I wish someone told the 20 year old me back then to invest in a house, I would have been be way way better off!

 

You might get some discounted developer stock that they are desperate to sell......but that would be rare.

 

Same!