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Off the Plan Units Kingswood/Penrith

Discussion in 'Where to Buy' started by Bigmaan, 28th Jun, 2015.

  1. Bigmaan

    Bigmaan Active Member

    Joined:
    19th Jun, 2015
    Posts:
    26
    Location:
    Sydney
    I am looking at a development in Kingswood ( Penrith NSW ) which is at 208 Great Western Highway, Kingswood. They are selling off the plan 2-3 bedroom units from $440,000 up to $500,000 for 3 bedrooms. I know the area well. It is across the road from KIngswood Railway station, next to Nepean Hospital, 1km from University, 2kms from Penrith CBD. There is some housing commission in next few streets and some undesirable people in the area. However it certainly in the middle of everything good in Penrith. Close to the motorway, Panthers etc... There must be a catch ? Sounds too good to be true ?

    Lot of money for units but I just wanted to gauge peoples thoughts ? Penrith has performed extremely strong and I think there should be some growth in this as completion is not til end of 2016. Having never bought a unit or OTP before I am just throwing it out there for some feedback from the experts and smart investors. I would think rent would be in range of $450 per week rent or higher.

    Thank You
     
  2. ZOMG

    ZOMG Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    71
    Location:
    Sydney
    I wonder how buying OTP in this market at the current time will fit in with your investment strategy and goals? Please tread lightly.
     
  3. monalisa

    monalisa Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    314
    Location:
    Sydney
    Hi Bigmann

    I would be extremely cautious with buying in Sydney as this point in the cycle, especially with OTP.

    Please go to:

    http://somersoft.com/forums/

    and search on OTP.

    Just because you know the area well, it won't necessarily make a great investment.

    Have you run some numbers on what it is going to cost you - weekly, monthly and yearly? Especially when rates do increase?

    Have you checked what comparable established units are selling for? I am sure much lower than the OTP you are looking at. What are the chances that your unit will be valued at the purchase price come settlement time?

    When @MsAli and i started investing, we were swayed by the 24k FHOG back in late 2009, and shiny new apartments near Parramatta. We tried two banks, and neither valued them at the purchase price. We decided to pull out. We lost our 0.25% deposits on the two apartments - better learnt the lesson with $2k only. We purchased much better quality properties, which have done much better over the same time frame.

    Good luck!
     
    Toon and ej89 like this.
  4. bob shovel

    bob shovel Well-Known Member

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    Location:
    Somewhere in the land of Oz
    good location and all that you mentioned but too expensive and surely cant be to much more growth, not like the growth the last 2years anyway.
    . i recall getting otp brouchures 2 years ago for townhouses 2-3 bed for 100k less in k'wood
    just check the numbers and your strategy carefully
     
  5. fols

    fols Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    151
    Location:
    Sydney
    I purchased a two bedder on GWH Kingswood 18 months ago. I paid $227K.

    Sydney's already sailed.

    Go to Brisbane.
     
  6. sash

    sash Well-Known Member

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    19th Jun, 2015
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    3,214
    Location:
    Sydney
    Let me put it this way....you buy it now...and in another 3-4 years I buy it back from you for 30-40% less! :):p

     
  7. Bigmaan

    Bigmaan Active Member

    Joined:
    19th Jun, 2015
    Posts:
    26
    Location:
    Sydney
    Thanks Sash and everyone else who has commented so far. I will put the cue in the rack for this one and back to drawing board. Appreciate the advice.
     
  8. bob shovel

    bob shovel Well-Known Member

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    Location:
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    yeah, good area research though..do the same for the next one!
    now.... are you the real bigmaan? penny got up today, didnt see the game. where in the riff do you hail? im from emu
     
  9. Masih

    Masih Active Member

    Joined:
    20th Aug, 2016
    Posts:
    29
    Location:
    Hunters Hill, Sydney
    Penrith has way too much going for it to ignore like that. Never take a blanket approach to property markets and think that Sydney is dead so lets move to another city. There are markets within markets at all times so just because one pocket of a city might not be doing well, that's not the case with another pocket.

    There are billions of dollars currently being spent in that area and surroundings and heaps of projects taking place including the airport. I firmly believe that Penrith is where Parramatta was in 2010/11 and will do well in the future.

    Read about the Science Park that will generate thousands of jobs.

    No Cookies | Daily Telegraph

    14% increase in 12 months according to Corelogic.

    Free Suburb Profile report for Penrith NSW (2750)

    Extremely low vacancy rates.

    Investment Property Penrith, NSW

    The cheapest 2 bed I have for sale in Penrith are from 488k and 3bed from 590k so based on that, that's 50k and 90k you've missed out on so far. However I believe it's still not too late. Jump on whatever real estate portal you use and find yourself a good deal if you havent already.
     
  10. Inov8ive

    Inov8ive Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    484
    Location:
    Sydney
    Kingswood is a very good location to invest, there are not many suburbs in Sydney that can match its credentials. Hospital, university, tafe,train station, schools, close to shopping, arterial roads and a low vacancy rate. There is a really good mixture of housing as well with houses, town houses and units. In saying that, I would steer away from this particular development and the OTP units. I have seen at least two similar developments in this vicinity sell off the plan and then not go ahead, which is a concern. For the price you are paying you would go very close to getting a 321 town house in a better location. If it's definitely an apartment you want look at older style units around Santley Cres, you should be able find a good unit in the low 300's, although they don't come up all that often. Don't look on the other side of the tracks.