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no parking, aircon, no re agents yet buyers waiting to buy

Discussion in 'General Property Chat' started by melbournian, 6th Apr, 2016.

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  1. melbournian

    melbournian Well-Known Member

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    No parking, no air con, no real estate agents, no worries

    really interesting apartment building - no AC, no 2nd bathroom, minimal or no parking and there is also a caveat there saying you can't sell the apartment for more than the suburb annual percentage growth for 20 years yet it has attracted so many buyers. Same developer group of architects (green focused) who did the same in brunswick.
     
    Last edited: 6th Apr, 2016
  2. Big Will

    Big Will Well-Known Member

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    According to whose source?

    Also if a suburb's median price has gone up 20% (100k) then guess what all others have also gone up by roughly the same amount, how does that discourage investors?

    Also for the investor the deprecation happens in the early years and not the later years.

    Even without the caveat it isn't a stock I would buy (numerous reasons), unless super cheap.
     
  3. melbournian

    melbournian Well-Known Member

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    according to that article in smh

    "There's also a caveat on the title dictating for 20 years the amount the apartment can ultimately be sold for: buyers can only sell their property for the purchase price plus the average price growth for the suburb. The same condition exists for the Brunswick project."

    remember that 21 lantana ave thomastown place - in the s32 it had a covenant saying you could only build a brick home - so no weatherboards. i've seen some in reservoir as saying no sub division

    yeah - not sure about this apartment place but many ppl there tend to cycle etc and are very green focussed. my work colleague is one of them.
     
  4. Big Will

    Big Will Well-Known Member

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    So if you buy the unit for 500k (with caveat) and someone else buys a unit for 500k (without) and the suburb's median price increases by 50% in the given period. The unit without caveat sells for 750k how much can you sell the 500k with caveat for... 750k wow that is MV how does this deter investors?

    I have seen on S32 in Camberwell you are not allowed to use the land as a pig farm (yes this is real), so I didn't buy it as was a potential restriction I didn't want (jk).

    That is all good being green focused but I prefer my car (not that everyone should be like me), however not having a car park would limit your pool of potential tenants (less demand) plus there were numerous other factors which I will not go through but all of these made my comment of I wouldn't pick this as a stock I would consider.
     
    melbournian and Cactus like this.
  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    So for investors theres an incentive to buy it at the maximum price to allow it to be sold at the highest possible price. And as long as that price isnt crazily unreasonable it can continue like that down the track forever....

    On the flipside, if it looks like it would attract the best sales price without doing any work to it then there's no incentive to spend any time or money improving it for the purposes of maximising future resale prices.
     
  6. Big Will

    Big Will Well-Known Member

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    @Gockie this is what I am saying it doesn't make sense on why an investor wouldn't take it up (if they wanted the stock).

    If you don't want an investor to buy it then say you cannot leave or sublease the development. Then you will only get PPOR buyers.