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QLD OTP Apartments inner city Brisbane

Discussion in 'Where to Buy' started by DiligentPM, 14th Feb, 2016.

  1. DiligentPM

    DiligentPM Well-Known Member Business Member

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  2. datto

    datto Well-Known Member

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    It's all negative. No mention of the generous depreciation deductions. Nah don't let the facts get in the way of a good story.
     
  3. teetotal

    teetotal Well-Known Member

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    Make sure to choose the developer wisely.
    Look at their past completed projects.
     
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  4. DiligentPM

    DiligentPM Well-Known Member Business Member

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    Yes...growth is critical as depreciation runs out after about 7 years...There appears sector concern about potential over supply holding off growth for many years...Keen to discuss this topical current issue more...
     
  5. fumid

    fumid Well-Known Member

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    If government cancel investment property negative gear, the new apartment will have big problem, but also will influence the whole market as well?
     
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  6. Jacob1

    Jacob1 Member

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    There is no 'one size fits all' approach for investing. OTP investing can work amazingly for tax benefits, stock selection, no maintenance issues, developer incentives with pre-sales etc.. It's important to work with a reputable outfit or developer and conduct your own due diligence, value proposition and ask whoever you're working with to run over their property selection process with you. Or you can be more active, buy an older property and add value to it, both strategies if conducted correctly have proven to be profitable.
     
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  7. HUGH72

    HUGH72 Well-Known Member

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    OTP can work but not in the CBD in the current market.
    A massive supply response is coming, this is well known.
    I can't see any positives.
     
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  8. Redwood

    Redwood Well-Known Member

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    The proposal from Labor allows new properties to negative gear...

    Cheers Ivan
     
  9. Jacob1

    Jacob1 Member

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    Depends on where you're looking; what isn't heavily publicised in the media is that there has been a substantial rise in the build costs, around 20-30%. The bottom line won't be enough for some developments to get out of the ground.

    Affordability is driving interstate migration which is basically in correlation with the price growth in Sydney and Melbourne. The average household income in Greater Brisbane is just over 15% of the median house price. Greater Sydney has roughly the same household income but only just over 9.5% of the median house price. More infrastructure in place per capita than anywhere else in Australia.

    I personally am not a fan of inner city apartments and prefer the middle to outer ring.

    There is value to be found in every market.
     
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  10. HUGH72

    HUGH72 Well-Known Member

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    Affordability isn't going to help much in regards to otp cbd units, many won't be able to settle or find a tenant at a reasonable yield.

    Build costs might be up 20-30% but there are cranes everywhere near the cbd churning out mass production investor stock.

    Definitely plenty of value to be found but not in the cbd unit market.
     
  11. Jacob1

    Jacob1 Member

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    I disagree. There may be an oversupply in some pockets though in others you may take a hit in the short term yield wise but the long term growth prospects are there. You can't just throw a blanket over a 3km radius of the city and declare it unfit for investment.

    Either way as I said I'm an advocate of middle to outer ring, I just think there is value in suburbs such as West End dependant on the project you enter into.
     
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  12. HUGH72

    HUGH72 Well-Known Member

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    CBD, West End isn't CBD.
    Only time will time but the risks are becoming apparent to all.
     
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  13. Jacob1

    Jacob1 Member

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    True, I guess I consider anything in a 3km radius to be 'inner city'.

    Time will tell