NSW Near-New Apartment in Asquith, NSW - thoughts/views

Discussion in 'Property Analysis' started by PropDir, 8th Mar, 2021.

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  1. PropDir

    PropDir Well-Known Member Business Member

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    Hi all,

    I generally don't buy off-the-plan or very new apartment blocks, however I am considering an opportunity to buy a unit in Asquith (which is around Hornsby NSW) as it is close to my area and I know some people close to me I'm considering leasing it out to as an investment and it gives me some flexibility to utilise it for a few other reasons.

    The property is listed here - 402/1a Mills Avenue, Asquith NSW 2077 | Domain ..it is called Asquith Park.

    It was built by the Blake organisation - see info here - Blake Organisation Projects.

    Does anyone know about Blake developers? If the development was built around 18 months ago, do you think it would have passed the new recent stringent laws brought on by the government after the Opal building issue.

    This development has around 31 units, so it would be good if some of you to share the risks around new apartment developments of this size (given this is not a high rise, it's a boutique development) - I'd like to review the risks dispassionately.

    Numbers are pretty decent - priced at around $515k, with rental potential around $410-$420 per week.

    Any thoughts from any of you would be great.
     
  2. Trainee

    Trainee Well-Known Member

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    Can you see any negatives about it?
     
  3. PropDir

    PropDir Well-Known Member Business Member

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    I am just unsure about the developer - it's presumably not one of the big ones like Mirvac given they probably focus on larger (not boutique) developments.

    Secondly, just the general thoughts around new apartment developments.
     
  4. Sydneyboy

    Sydneyboy Active Member

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    I personally would not buy a newly built apartment. They are simply riddled with defects. I would be even more concerned about a high rise development (4 or more storeys) as there is no home warranty insurance. You could be left with an insolvent builder (happening a lot these days) and a developer that has used an SPV, so good luck chasing them.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    It's an elevated apartment, I sure hope it'd have views. :p
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    In place of having a property pre-purchase inspection you ask on PC to obtain surety the construction is to standards ? Nothing but an inspection will confirm the standard of build and any defects. Some developers engage contractors who construct to very high standards.

    Not sure I would be thrilled with the old highway AND the 24 hour rail line (freight) at my window. Some freight trains are quite long and very slow and noisy and have no noise limits. But nobody will build it in.

    upload_2021-3-9_10-17-21.png
     
  7. PropDir

    PropDir Well-Known Member Business Member

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    Hi Sydneyboy - just confirming that no insurance is offered by the insurer if you purchase an apartment in an apartment block which is 4 or more storeys high? Also. what is the specific type of insurance you mean - is it the whole building, individual apartment purchased, or something specific within the apartment?

    Thank you.
     
  8. PropDir

    PropDir Well-Known Member Business Member

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    Of course a pre-purchase inspection and proper due diligence will be completed priorhand. I have not even visited the apartment - this is simply to see if there is any potential easily identifiable issues when initially looking at it.

    The developer had advised that the glass is some type of commercial strength glass to block out noise.
     
  9. Trainee

    Trainee Well-Known Member

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    Hard to see who the renters will be. Single people who work nearby? But there is also a lot of supply.
     
  10. Anthony416

    Anthony416 Well-Known Member

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    I am a town planner who has lived in Hornsby for a very long time so my comments will be more general and not about any specific builder.

    1) For practical considerations this address is basically Pacific Hwy (now re-named Peats Ferry Road) so the road is busy and then you have the rail line not too far away either, so noise issues may be a consideration.

    2) There has been a lot of land rezoned along the Pacific Hwy at Asquith, many more appartments are going up and it will be this way for several more years yet so oversupply may be an issue for future values.
     
    Last edited by a moderator: 4th Jul, 2023
  11. PropDir

    PropDir Well-Known Member Business Member

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    thanks Anthony I agree. I just checked out the apartment today. They said it had commercial strength glasss but I tested it and could still hear the traffic outside.

    The place was also too small for my liking.
     
    Anthony416 likes this.
  12. Sydneyboy

    Sydneyboy Active Member

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    This is home warranty insurance required under the Home Building Act. It is intended to protect home owners in the event of builder insolvency. If a home owner has a claim against the builder for breach of the statutory warranties (e.g. for defects) and the builder is insolvent or can't be found, the owner may have recourse under the insurance. For some reason the legislature decided this is not required for high rise developments. Not ideal for a purchaser of a high rise apartment.
     

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