Some disappointed OTP people in this story

Discussion in 'Investment Strategy' started by Depreciator, 19th Aug, 2015.

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  1. Chilliblue

    Chilliblue Well-Known Member

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    Skater, when large developers go to Council they often go with a plan significantly above what they want and well in excess of the current regulations.

    What ends up happening is that Council knocks off a level or two and think that they are champions for doing so and the developer ends with the extra.
     
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  2. spludgey

    spludgey Well-Known Member

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    They refunded your opportunity cost and time? :eek:
     
  3. Sackie

    Sackie Well-Known Member

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    Déjà vu moment...
     
  4. Big Will

    Big Will Well-Known Member

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    Thing is he already had approval but then wants to make further changes to it.

    The reason the changes came into play was because he voted on changing the zone rules as a council member as a blanket across the council region which impacted him.

    If he put his application to council before this he wouldn't be able to vote on it but as he changed what is allowed in the council he was able to get it approved as it was allowed.
     
  5. Johann_

    Johann_ Well-Known Member

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    Hi,
    I just had a client who was in the same situation. Client was sold that it was going to be a 40sqm apartment. Two banks went to value it and it came in at 32SQm.

    Client is in a mess banks will only consider a 20 to 30% deposit and the client only has 10% funds.

    OTP are a very risky investment!!!
     
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  6. LibGS

    LibGS Well-Known Member

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  7. chylld

    chylld Well-Known Member

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    No need to beat a dead horse. Everyone can read from the manner of his responses that they didn't.
     
  8. sanj

    sanj Well-Known Member Premium Member

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    Im not a property hater and i think prices in Sydney have a good chance of dropping ans then stagnating.
     
    Last edited: 21st Aug, 2015
  9. Sackie

    Sackie Well-Known Member

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    @sanj I agree mate no doubt. Isnt that part of the normal cycle? There are also a lot of investors who bought really well and also added value to some of their stock so when markets drop or stagnate its going to be harder to drop to a level pre buying well and pre value added. just my thought mate. But I agree with you I think its likely it will drop a little then stagnate for sometime. The ones who will be hit the hardest are the ones who bought overpriced dwellings and in wrong locations, imo.
     
  10. sanj

    sanj Well-Known Member Premium Member

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    My point is not everyone who has a negative view atm is a property hater without a clue
     
  11. Sackie

    Sackie Well-Known Member

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    Never said 'everyone', but I believe there are a lot that don't have a clue. Just my personal belief.
     
  12. Azazel

    Azazel Well-Known Member

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    Generally referring to the lemmings out in the world, not the well educated property investors here.
     
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  13. Sackie

    Sackie Well-Known Member

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    Yes. I thought that would be obvious.
     
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  14. chylld

    chylld Well-Known Member

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    fixed
     
  15. Steven Ryan

    Steven Ryan Well-Known Member

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    It happens quite often that a DA is submitted, approved then amended e.g.
    1. Submit DA for what council will approve without hassles
    2. Start selling off the plan
    3. Before construction, modify the DA to realise a higher profit
    4. Do what it takes to get new DA approved
    5. Inform buyers they have been ****ed over at the last possible chance
    6. Be unable to sleep at night
     
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  16. legallyblonde

    legallyblonde Well-Known Member

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    A friend of mine bought OTP with a similar clause regarding size. Thankfully the slab of her place had already been laid so that was comforting.
     
  17. Tattler

    Tattler Well-Known Member

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    32sqm? Is it in Melbourne? That is approaching apartment sizes in Asia!
     
  18. skater

    skater Well-Known Member

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    The sad thing is that this piece of **** IS able to sleep at night.
     
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  19. 3am

    3am Active Member

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  20. 3am

    3am Active Member

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    Agree with grame, his reputation is very tainted. investors home buyers will not forgot him in a hurry. I know i wont go near any of his projects now. Look at what his father and him did you will think his words are not for keeps.

    Dont think he is such a smart dude.

    Regarding buying off the plan, make sure you do your research mainly on the developer andthe financial backers.
     

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