NSW Opal Tower Sydney Olympic Park

Discussion in 'Where to Buy' started by HarrisLiam, 11th Jan, 2019.

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  1. HarrisLiam

    HarrisLiam New Member

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    2nd Aug, 2017
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    NSW
    Hi Guys,

    Just wanted to ask as the Opal tower is under fire with issues crippling the reputation. If the prices for the apartments drop drastically. Would it be a good buy? If someone could advise would really appreciate it.

    Cheers!
     
    Last edited by a moderator: 11th Jan, 2019
  2. Karina

    Karina Well-Known Member

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    I wouldn't buy it even at 50% off. That's just me.
     
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  3. Big Will

    Big Will Well-Known Member

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    I know of the building/news of it but not the actual problem and remedy to it and the costs or even if it is possible. This would be a high risk investment as the stigma surrounding the apartment building could takes years or even decades to lose and that is if the building continues to stand.

    Buyers would be turned off by the stigma as they would inherit the known risks - this would reduce future capital growth.

    Tenants wouldn't want to rent it due to the stigma so landlords would need to reduce their rent/yield so would reduce the cash received either impacting on yield or growth (or both).

    Vacancies rates would likely be higher for the foreseeable future as again tenants not wanting to live there so again the landlord would need to lower the rent price to encourage to get a tenant.

    If/Once (this could take a decade or two) the stigma was removed then the asset would act as a 'normal' building.

    If you bought cheap e.g. 600k apartment now for 300k and it lost the stigma and still stood then yes it could be a good investment (the sooner the stigma went the better returns) but if you buy at 300k and they decide they cant fix it and have to demo it then you have lost the majority of the investment (you would still have % of land).

    Further the ability to finance it would be difficult as the bank is probably unlikely to lend at 80% it could be more 50% or less. Further insurance might be very expensive, have an exclusion for structural defects or unable to insure.
     
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  4. Pete Arendt

    Pete Arendt Well-Known Member

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    There was an article in the AFR yesterday suggesting the banks won't lend for Opal - the risks are now too great.

    This means you will need cash.
     
  5. ndpjai

    ndpjai Well-Known Member

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    Imo This potential disaster could spread to high rise buildings for short term unless the whole area is full of high rises buyers will be very very cautious
     
  6. qak

    qak Well-Known Member

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    I suspect the govt will be bailing out people - and if you knowingly bought with issues, yu won't be eligible for their support. I would stay away anyway.
     
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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  8. Aaron Sice

    Aaron Sice Well-Known Member

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    There's always one......
     
  9. Jana

    Jana Well-Known Member

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    May be your link is limited with previledged restriction so new member couldnt comment. I couldn’t comment there a while ago.
     
  10. dragon

    dragon Well-Known Member

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    sydney
    opal tower is big and number of affected people is also big. Have you seen similar issues in any other appointments?

    How about small building with 40 units?
    btw what do you think about
    15/124 Dutton Street Yagoona, NSW 2199