VIC Off the plan townhouse in Reservoir

Looking to buy off the plan townhouse in reservoir. It is 170 sqm - 3 bedroom 2 bathrooms plus front and backyard for 660k. This will be my first home. Can anyone suggest if this price is a right price for a townhouse in reservoir? What about property market growth in few years down the line.

 

How much is strata/body corporate fees?

 

Whereabouts in reservoir ?

 

Thank you for your replies. Really appreciate that. Property is on McMahon road. BodyCorp is approx 1100 per year.

 

Seems a bit high given that the median house price for the area is 680k. Wouldn't an older house be a better investment?

Like the below (I don't know the area at all mind you but it has to be better than OTP):
11 Keilor Avenue, Reservoir, Vic 3073 - Property Details
55 Elliot Street, Reservoir, Vic 3073 - Property Details
13 Enderly Avenue, Reservoir, Vic 3073 - Property Details

 

Very small lot. I was looking in the area 3 months ago. You would be paying a premium for a brand new property. I was looking at established units and townhouses which are better value for money. In the end I decided the area had moved in price and looked in the west growth corridor.

 

If I had $660k to spend a brand new Reservoir townhouse would be firmly on the bottom of my list.

There are so many places in Melbourne where you can get a proper home with land for that price. Sunshine West, St Albans, Kealba, Keilor Downs, Taylors Lakes, Sunshine North, Keilor East, Keilor Park, Tullamarine, Gladstone Park, just off the top of my head. A triple fronted brick or weatherboard on a big block should be achievable in any of those areas. You will have land content, be in a better, more liveable suburb, won't have to pay body corp, and aren't paying a premium for a new build (why people do that I don't know).

Even Geelong is a much better proposition. 5.9% growth for the City of Greater Geelong since September. For that budget you can buy an inner city heritage Victorian/Edwardian/Californian Bungalow - that's exactly what I did as a matter of fact. Not to mention all the interstate possibilities.

If you're dead set on fully sik Rezza uleh, I'm sure there will be a triple fronted home on a big block of land in your budget bro.

I apologise for being so blunt, but please, run. Run far far away. Don't waste your money.

 

I should hve mentioned that land size is 260 sqm and floor area is 172 sqm. I dont have enough deposit to pay right now. Therefore looking for off the plan which gives me enough time to save more. Considering 260 sqm landsize; is 660k for brand new townhouse ready early next year sounds a good bid?

 

I might be missing something but I didn't see OP state anything about the home being a PPOR - only that they were looking at capital growth. If the OP is looking for a place that makes them happy then more power to them (I would personally gladly pay for weatherboard heritage properties because they make me happy) but capital growth wise there are much better ways to spend the money than an off the plan town house.

As has been previously mentioned by other posters, the price is around the median price for ALL Reservoir properties, and there will be a premium involved because of the new build. If someone's willing to pay a premium for a new build because they would like to live in a brand new place then that's cool, but you can't say it would be a good option for capital growth.

Buying a dilapidated houso home and knocking down/rebuilding may even be a better PPOR option for people set on buying new.

Edit: If I was set on Reservoir, even as a PPOR, looking at the recent sales I would go for something like this:
55 Elliot Street, Reservoir, Vic 3073 - Property Details

 

I linked the same house above

Interestingly, this OTP townhouse is the same price despite the better location: 8 Davies Street Brunswick Vic 3056 - Townhouse for Sale #123209330 - realestate.com.au

 

This is 2 bedder though. The one at Reservoir is 3 bedroom.

 

That's true. Personally, I would rather have a 2 bedder there than a 3 bedder in Reservoir but that's just me.

We were very, very lucky to be able to get out of the contract for an OTP apartment so I would never recommend it now - I only suggested it because of the OP's situation of not having a deposit saved.

 

Well there you go! No reason to get the Reza townhouse when an equivalent property in the inner city right next to a station is the same price!

 

Yes it will be my PPOR. I want to live here. However, I'm still finding out about Reservoir as a suburb to live for good part of my life.

I can get to CBD in 40-45 mins by train. There are few primary schools around. Property is close to two railway stations within 1.8 kms.

I can get loan for the price. Just worried about if the valuation at settlement is lot less than the sale price.

 

If you buy off the plan - That is the risk you are going to have to take.

I do remember reading somewhere about a large OTP development which delivered units with a valuation significantly lower than the sale price once complete.Of coarse it can go the other way as well. It depends on how confident you are in the market.

Reservoir has already risen significantly. How much more will it grow?

If it was me, I would be looking at cheaper properties or saving for a larger deposit.

 

Personally I think it is an ok price being this one in newton street sold 788k

4/46 Newton Street Reservoir Vic 3073 - Townhouse for Sale #123973558 - realestate.com.au

Prices for townhouses will rise as single dwelling houses are getting more and more expensive. If the suburb houses were selling 500kish u won't see much growth but price in townhouses. It happened to thornbury, northcote and now happening in Reza and Preston


Look at Heidelberg heights the Haig next door suburb some sold 880k. When prices started to rise for houses ppl wanting to get in can't afford the higher prices they go townhouses happens in Balwyn, chadstone, mt waverley, Clayton efc
Also Reza the redev of train crossing summerhill redev and the proximity to Latrobe, rmit and preston redev of market (all Positive growth signs)

Again is all subject to individual needs each one investment strategy is diff

 

As I mentioned before, the one at Reservoir is 3 bedroom. This one at Brunswick is a 2 bedroom. Not sure why people keep comparing 3 bedder vs 2 bedder.