New H&L vs Second hand buy vs established property in NW Sydney

Hi all,

I would like to get some thoughts on pros and cons of buying a H&L from the developer directly vs buying H&L second hand from a seller (OO or Investor) va buying an established property.

New H&L:
- You may have seen many ads and emails from developers like Allam announcing big discounts (up to 100k) on newly constructed H&Ls. Allam being a reputed quality developer I am thinking of them when I think H&L.
- Can anyone please share some insights into buying from developer such as Allam, what are things to be aware of, negotiation points, any further discounts that can be discussed, quality of construction and warranty inclusions and exclusions.
- There May be benefit of depreciation- does this only apply to Investors only (I am guessing so)

Second hand H&L:
- For this I am thinking buying from an owner occupied or investor looking to getting out due to financial situation and where the property was built in the last 5 years. Here there may be some room for negotiation but the property is no longer new.
- Something might be wrong with property which may be covered up and sold

Established property:
- Some propchat members have previously commented that older homes tend to be stronger/ better build than new H&Ls. While I can think roofs of new H&Ls being damaged in hailstorm 2 years ago, I can’t think of anything else. On the contrary, old homes may have defective or run down plumbing or electrical issues.

Appreciate you thoughts on buying/ comparing above types of properties. Many thanks.

 

You already know what you want. You just want something to support that.

 

A nice neat and tidy new build in the wrong street will never beat a slightly used home in a established quality street. We faced this dilemma in Kellyville 13 years back. I was at the point of necking the agents for not listening to what we wanted. One mockingly suggested we look at the new builds "down the road"...So we did. Stopped outside and my wife looked at them and laughed and suggested she would stay in the car with the kids (it was 42 degrees). We both thought well outside our price point. Wrong.We thouht they were on a main road - wrong they were in a quiet side street. Only the display ones (12) on the main road and they had been sold.

These were Clarendon homes.

We couldnt believe the value and it literally ticked every need. Next day we inspected what is our home in a half complete state. We just had to wait for the build to end - 5 months. It did mean we lived in a construction zone for months and ourselves + another neighbour were it. It was quiet after 3pm but noisy at 7:30am 6 days a week.

Look at both and when the right one comes along.... Go look at Allams and their competitors and see what they have. Locations, plans, inclusions etc You may hate it or like it. At least you make an informed choice.

 

Thanks Paul. In fact we looked at a few Allams yesterday and fell in love with one. Given about 100K price cut it is very tempting. The killer is the drive to Cherrybrook will be easily about 45 mins in the morning traffic. The train station helps but still a couple of kilometres from the station at both ends.

Back to scratching the head, looking at available properties closer to Cherrybrook, guessing which way the economy will move

 

You listening to yourself?

 

The 100k price cut is because the value of thhe property has dropped (at least) by 100k. Last year Allam was paying stamp duty for their customers. Surprise surprise the valuer valued the house at purchase price minus the stamp duty figure.

If you're dead set keen on the new house, ask Allam if they would be prepared to reduce the price further if the valuer comes back with a lower figure. Wait a few seconds and you'll hear all the excuses under the sun why they won't do it.
Make sure you have spare cash to cover the valuation shortfall. Once you sign the contract (They'll make you do it prior to them releasing the contract to your bank/broker) you'll be stuck paying the contract price regardless of its actual value.

 

Never buy houses directly packaged by a builder.

You need to buy it wholesale....done right it will out perform an older property. People who say that otherwise...don't have the skills and knowledge to make it work.

 

@sash As an individual buyer how can I buy wholesale? Please advise

 

Please PM me.

 

Hi,

I recently purchased my first parcel of land and am looking to build sometime next year. When dealing with builder for such project homes, am I able to get a valuer to value the land and house, prior to signing the contract to build? I have already signed the contract for the land, should I of got the land valued aswell?

thanks in advance.

 

Hi Sash,
Can you advise me on how i can buy land as wholesale?

 

I would be interested as well