VIC Thoughts on Rockbank h & l

Was it a nice hat at least?

 

what you saying sounds logical but as per my individual scenario CG is not what I am thinking currently, affordability and lifestyle what I am going for. I want to keep the borrowing at a minimum as would be paying rent in Sydney too. say the total price for my H&l is 320k. I would be borrowing only 200k . with that kind of deposit I can go for one in sydney but will not at this market and do not wish to borrow large amount.
I would have some ready equity in years time. but I wont go for another IP for a while , what I would be doing is save more and buy in Sydney if and when market corrects, else I would move to Melbourne in 5 yrs time and I would have a place to live in .
obviously from an investor's perspective its a foolish thing to do but some people are just happy with 1 property lol.

 

It was MAGICAL... david Copperfield type you know. and he told me in my dreams to pick that hat up and bamm!!! CG

 

Do what suits you best. No one strategy fits all and just because one is not comfortable with another strategy doesn't mean it's wrong. I think we are smart enough to know each person here can only speak from experience.

 

wow.. great Job. gives me hope for sure.

 

Just a short true story I would like to add...there is a suburb called THE PONDS. about 45km west of sydney , all house and land release in 2011.(housing estate) my friend bought h&l for 345k(3,2,1).
his house is 970k valued this year. still dont have train station, amenities are also under development. it was considered before middle of no where and 5 years later ..hmm.(fyi mostly middle -low income earner bought there as that was affordable then).
housing estates in Melbourne providing lots of facilities which in sydney you simply dont have enough land for it now.

 

true that. hindsight always helps. wish i had the foresight and guts 5 years ago.

 

I think people who bought there most of them didnt have foresight. my friend bought as he was priced out of bella vista and kellyville. I have never been there but heard that its well planned and nice same as scholfields. but still I think 1mil median is too much , I would pay 600k max for a house past parramatta.
I also didnt have guts. West was scary to think..lol

 

That's pure luck.

 

@sash i can't find this new legislation that requires developers to release with 2 years? Or is it the nsw law you are referring to?

How do you 'buy well' when dealing with major corporations who sell land and build homes? It's easy when buying of members of the public to pick off distressed sales, I haven't seen many distressed sales in new land estates. And apart from marketing discounts for builds I haven't seen builders do much 'real' discounting either?

 

Not legislation. A sunset clause means the contract can be voided by either party at the expiration of the time period. Normally 24 months can be less or more though. Check your contract before signing.

Discounts are hard to come but in a strong market. Trick is buying the cheaper read smaller stock and putting the biggest single storey home you can on it. Builders run promotions, you have to weed through to work out best value.

 

You do realize that 2011 in Sydney there was a little trough then a boom 2013-2016.
Sydney is now at a peak and Melbourne is not far behind Sydney.....

How well do you know H&L (especially in a new estate market) when the market tanks?

I have seen @MTR been quote several times in this thread.... I am pretty sure remember reading her post, her advise was yes in a rising/booming market, but run for the hills in a flat/declining market....

 

Don't disagree with @MTR position on this.

Please tell me now that Melbourne market is flat/declining.

 

Tobe.... I think you are confused with the sunset clause typically in the contract it stats how much time the developer has to get the land ready. They indicate that they will get it out in 12 months but in 9 out of 10 times it takes longer. So that buyers don't walk away the sunset clause sets extra time. Once this expires either party could terminate. The dodgy Sydney developers played with this and delayed settlement till the sunset expired at that point they wanted more money. I believe in NSW they changed the legislation to offer more protection for the buyer.

Believe it or not you tend to make money in either the very early stage before the core infrastructure is in...most people can't visualise the end product. They might offer rebates at that point...but is very rare nowadays due to demand.

 

I dont know h&l rise and fall at all. all I know I can only afford a h&l bellow 350k. (which was in the ponds before ) even if the sydney market tanks , house and land will not go down as much as apartments , but again thats my opinion. I am not expecting cg like from melbourne , but would not feel comfortable thinking h&l will go bellow 350k.

 

I have never seen anything in a land contract referring to when the land will be ready/title. Are you saying you write these subset clauses into your contracts?

 

You are onto a winner..with this strategy...there are lof of subcontinent types who are doing exactly this...they want to buy in Sydney..but can't due to the prices. I know of at least 3-4 people who have invested in Melbourne Outer suburbs whilst they wait for Sydney to deflate if it does not they plan to move into a full paid off house in Melbourne...but the one thing is they want some security.

 

It's not called a sunset clause in the contract. That's just a nickname for it.

There is a clause in every pre-registration contract stating when plan registration must occur by or the parties can end the contract.

You may be able to negotiate a different timeframe.

 

Stockland and larger developers will not let you change much now...but before I was able to ask for these term changes:

1. 45 day settlement instead of 14 days and the ability to ask for extension and pay 8% internest
2. Nominate and/or Nominee
3. The ability to on sell via advertising but not competing against the estate directly

 

I have negotiated all of these before as well.

In Vic and or Nominee is not required to be written into the contract, but for absence of doubt I put it in as well.