Epping Meriton Off the plan

I have read a from previous posts that most people do not recommend purchasing Meriton apartments as an investment however a few agents in the area have suggested the quality is much better and a decent investment in the current rental market.

I am a first home buyer/ beginner investor and looking for the right investment to start with. I am not too concerned with the FHOG however my budget is roughly $1.5m with 20% down.

A 2br 2bath 1carspot at the new Meriton development in Epping NSW is asking $1.4m. Looking to rent it out.

Struggling to decide if it is worth it as i have been saving so long for my first property.

Would appreciate some help or alternative suggestions! Thank you.

 

I'd spend 1hr a day for a month reading through these forums.
You'll narrow your focus a bit sharper than this for an investment.
Could be great OO, but not sure buying a new primo apartment is the best investment decision. Almost anything is renting, so it needn't be a spectacular apartment for certainty of rental income (this is often a big reason why new investors like this, they feel like its more certain to produce rental income vs an old house).

 

I would try and stick to 60's/70's/80's unit complexes with no lifts, no pools, etc.

I would also look at buying something with land content even if that means looking at Central Coast, Newcastle and Wollongong areas.

When looking at units always look at the strata costs and the AGM report.

When looking at new units be careful with the strata cost quoted as almost always this figure starts low and increases substantially in the following few years.

 

massive budget. what about your pport?

if pport is sorted, i would def spread accross two assets. and 100% not a unit in a high rise.

 

Take care and look at the depreciation in value of the Meriton units in nearby Parramatta over the last 5-7 years and don’t listen to sales agents for advice.
Most of the Meriton units sell at a loss for up to 5-7 years after purchase. If you have 1.4m why not buy a house that will give you $1,000 per week and lower outgoings.
I just built 2 for my kids and 2 for my wife 9+3 year lease to the government for $1.25 million.
if you wish to buy units buy 2 cheaper units or buy in a better area, don’t buy anything less than 10 years old in a unit as the levies will skyrocket in 3 years.

 

With your budget, you should definitely focus on freestanding house and land. Aside from the equity growth from the land, which will allow you to subsequently tap into by borrowing against to provide equity against an investment property later on, you’ll benefit from the optionality of being able to renovate or rebuild in future.

You might not get all the lifestyle you desire Day 1, but in 7-10 years the above should provide you a solid asset base to grow from. I doubt a new unit can do that to be honest.

 

Agree with other responses here, in that you can save yourself serious $$$ by buying something older in the Epping area. Take a look at the more established parts like Bridge/Victoria Sts or even the Cliff Rd side (not 1980's era but some nice low rises that are in handy spots) for better value than brand new. Why spend $1.4m on something shiny and brand new when you get something older for less than $1m?