NSW Off the Plan Hills District

Hi,

I have read through tons of OTP threads on here.

I wanted to get some feedback on a purchase I am considering.

It is a 2 bed plus study apartment with a courtyard as big as the apartment. Both bedrooms, living area and study all have sliding doors opening out onto this private courtyard area. It is on the first level, and walks straight out the courtyard gate onto a common garden area, where there is a gated common entrance that walks across a bridge to a shopping centre. The rest of the complex is mostly units. There is a Metro within 500 metres and a new hospital being built within 500 metres. High school and Public schools close by. No pool or gym, it does have a common roof top area.

I understand there are lots of risks buying OTP. And buying apartments in general. The value of the property could be less than what I purchase for. Interest rates could sky rocket. I may not be able to finance. There is an oversupply in the area.

I want to buy here as I will be moving out of state in about 2 years. I want to keep a place in the area that I can get to by public transport should I ever want to return here for a period of time. I have family and friends in the area. I don't intend to live in it, I intend to rent from day 1. But I would like to keep a place that I could live in if I want to.

If I cannot get finance, I can fund it with cash.

If interest rates go up, there will be more demand for rental properties.

If it is worth less at settlement than what I sign up for, I'll have to wear it. I intend to hold for 10+ years.

Two bedroom apartment in the same area (in the shopping complex), now 10 years old, are similar price at the moment.

What other issues could I face that I have not covered? What are other peoples experiences buying OTP apartments? The good, the bad, the hideous. I want it all!

Thanks!

 

What are your alternatives?

say you dont buy and invest somewhere else. In the future you come back. Could you buy or rent then? What will be the impact on your financial goals?

 

Can you get a house nearby instead?

 

It sounds a little bit like you don't really want opinions but validations.

Sorry, I can't give you that. It's a bad idea in my opinion, buying an existing house is almost certainly a much better idea!
Given that you said that you can pay cash for the OTP, I'm sure you can find a way to fund a house instead.

 

I agree with @skater and @spludgey ‘s thoughts.

 

‘Just so that i have a place to live’ isnt a good reason. ‘So that i dont get priced out in the future’ is a good reason.

do you believe it will be worth more than your investment alternatives in the future? Thats the only good reason to buy it when its not ppor.

if you need to live in the area in the future, do you think there wont be anywhere to buy or rent?

 

The nearest houses are $1.5m plus.

 

Yes I could rent or buy if I ever return here. I think part of me wants to own something here to still be part of the community that I have spent the last 20 years in.

 

I guess I am on the fence, prepared to take a risk and looking for a compelling reason not to do it.

Buying a house in this area is at least twice as far from the metro/hospital/shopping centre, would require a car (or a long walk to the metro) and at minimum, twice the price.

 

I am certain there are much better investments in terms of $$.

 

Then your reasons for buying are emotional. No one will be able to convince you with logic.

 

A big turn off for me is that the developers won't put a power point in the allocated car space. Given the increase in EV's and charging requirements, I wonder when this will become a standard feature in apartments. This complex won't be finished until mid 2023. I would have thought it forward thinking and common sense to put a locked power point in each car spot rather than battle strata in the future requesting one.

 

Yes there is an emotional connection to this purchase.

 

A lot of supply of apartments in Rouse Hill area. And there will be more to come. The new hospital doesn't have emergency department so doctors and nurses don't need to be on call. They can live a bit further away. Saying so it will still drive up rental demand.
The stage 2 of Rouse Hill Town Center has high rise apartments on the card... And there are at least 3 other apartment projects within walking distance to metro/hospital.
Think eventually the price will go up as Rouse Hill has become a desirable place to live and raise fam etc. But who knows how long u have to wait...might end up bearing some opportunity cost here. I'm watching Epping, Castle Hill etc ... Apartment price has not moved at all ... Some are lower than the otp price. Rouse Hill wouldn't be better than those two at this stage I guess.

 

Toplace is building 600 apartments on top of Box Hill Central which will further flood the market in the area. I advised my kids to buy to live in a 3 storey 10 year old in castle hill. These are going to rocket past the value of tower blocks as they are not building and more low rise home units in castle hill. Castle Hill has city facilities yet village feel and the quality and size of the older stuff built far surpasses the smaller bedrooms and living areas of the new products. Big courtyards in a ground floor home unit are a negative if there are balconies above as you have no privacy and are constantly cleaning the stuff being thrown over the balconies. In 5 years time the appearance of a fifteen year old building will be much nicer than a 5 year old building, the way quality has slipped in the industry.

Needless to say I’m biased as I want the best value, safety and security for my daughters. You may have other factors that rate higher on your list, these should guide your decision.

Further, buying in an established building shows you the care that the body corporate will take and the tenant to owners ratio. Buying in a new building is a gamble in how the body corporate will look after the premises ( will they scrimp on maintenance) and will it be a mainly rental building.

 

@Car tart , how would you rate castle hill for older 2 bedroom units in 3 storey blocks compared to the older stock at macquarie park, epping and eastwood (understand that the price points are slightly different)?

 

Thanks for all the advice and feedback. I truly appreciate other people perspectives from asking these questions. I decided against the purchase.

@Car tart I own a property on Mason Road across from this Toplace development. That shopping centre will cross over Mason onto my property, with more apartments and townhouses. There is a hundred apartments going in next door to me as well, they have demolished the house and excavated the property in preparation for the road and apartments. I wouldn't buy in this area because there is no metro. I don't understand why they didn't continue it to Box Hill and Oakville/Maraylya.

 

Glad that you decided against.

I do agree with all the concerns raised with the appartment. Another key issue is build quality How often we see issues with newly built apportment these days? This can drive your asset value almost to zero over night. Thats my biggest nightmare. Not all the build are bad. but it does happens.

All other risks are there but those can be managed by selling with a bit of loss worse case.

Buy house with a land somewhere else where your budget allows with you due diligence. You wont regret.

 

I still own 8 Mason Rd, so that must be across the road from you. I lived in Nelson Rd prior. I think it was saving money by our state government they should have continued the metro to Box Hill then made it link to the Blacktown Parramatta line at either Riverstone or Schofields for better connections. I live in Castle Hill as it’s closer to the city and my family, also my new wife doesn’t love acreage living.

 

I’m not saying one is better, but they aren’t building any more of those style of buildings in castle hill. I don’t know about other areas. The ones built are well built very popular and get good money.