Some disappointed OTP people in this story

Some ballsy dude bought 5 otp in one development in 2012. Sold 3 before settlement in 2014, made heaps. The gain become part payment for the two. Timing the market and having the equity to do otp when your life is not dependendent on it can work ie. You dont want to live in it. Your time waiting for the development is wasted but you get your deposit back if the project did not go ahead. You get brand new property for depreciation.

For me it worked out because i knew i was going short of funds for two years seeing my son through private high school and not likely afforded the repayment on an existing property for two years and i dont want to miss the boom i paid a small deposit of $5000 and a guarantee for the rest. So worked out really well riding the whole of this boom buying in a blue chip suburb. That development was going hot and by a well known developer in an area they would not dare to not go ahead for risk of losing chinese money.

Now i think is wrong time for otp. Like someone said it will be cheaper in two years time when people bought in could not borrow to settle.

 

^

Well thats not investment. Thats a gamble that paid off!

Good for him though.
The problem is that that thise who succeed think they havr some talent or skill at it and will keep on doing it until they lose it all

 

I stick to the Daily Telegraph if I ever read a physical paper.

 

That's what it's all about. No emotion just the returns.

Do you really blame this guy or any other developer who works within the laws, bears all the risks, then when the opportunity arises to increase profitability siezes it?

This is the risk of otp. If you don't like it negotiate a different outcome before you sign contracts not whinge after you've sought independent legal advice.

As much as we'd like to hate these questionable practices, they're legitimate.

 

All part of the buyer's due diligence.

 

The example of the guy who lost <>40% of his unit size and a balcony shouldn't be allowed to happen.
Also if it reduces to a size where the bank won't lend any more.

 

They entered into a one sided contract with open eyes. They have interest in the property. Why didn't they lodge a well founded objection to the S96 when they had the chance?

 

Doesn't sound like anyone had a chance with the way approvals are being handled in that council.

 

@Azazel That's what ICAC is for. If they've got evidence of wrongdoing by council, nail them.

Probity is a BIG thing in council.

 

Seems to be working out so far. Lots of people like Obied getting nailed.

 

But how much have the O'Beids paid?

 

Tell me about it!!!

 

Pretty sure they're still well ahead.

 

Yes I do blame the developer, increasing profitability by screwing the purchaser whether or not they should have known better is immoral.

 

@Scott No Mates what is Section 96 ?

 

S96 allows you to amend the DA.

 

@Scott No Mates many thanks I will look for this Section 96 in every contract that I ask from the Real Estate agent before inspecting the auction or getting off the plan.

 

@Tekoz for what must be around a year or so youve been talking about OTP ans buying property in general. In the meantime the market has increased significantly and most people would agree Sydney is fairly close to the top if not there already.

Why not look elsewhere or just invest in other asset classes?

 

Tekoz- it's not in the contract, it's the developer's right but no harm in trying to get a clause inserted causing the developer to notify you of their intentions to modify the DA. Probably have little or no effect but at least you might be able to object.

 

@Tekoz - it's not in the contract, it's the developer's right but no harm in trying to get a clause inserted causing the developer to notify you of their intentions to modify the DA. Probably have little or no effect but at least you might be able to object.