Advice on property in Waterloo

Hi Everyone,

I am quite new to this and I would like to know some experts opinions. I am thinking of buying it for capital gain investment.

I am looking to invest in Waterloo area. I am currently interested in a brand new 2 bed 1 bath 1 park apartment. selling price is around 799K for a 72sqm internal and 8sqm External. The current renting price for surrounding units is around $700/w. The Developer is Becton Group and the facility seem great. It's 10 minutes walk to Green Square Station.


My concern is wether or not the unit is overprice? And is the price going to drop within the next few years? I like the prospect of Green square shopping centre and the area seem to be developing quite well. I am just not sure if the increase in unit supply with drive the price down in future.
 
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Steer clear. Thousands of units coming onto the market around there and strata will be a killer. If you are looking at the 7-800k mark go for a small terrace around the area instead. They are not making anymore of those.
 
Hi Everyone,

I am quite new to this and I would like to know some experts opinions. I am thinking of buying it for capital gain investment.

I am looking to invest in Waterloo area. I am currently interested in a brand new 2 bed 1 bath 1 park apartment. selling price is around 799K for a 72sqm internal and 8sqm External. The current renting price for surrounding units is around $700/w. The Developer is Becton Group and the facility seem great. It's 10 minutes walk to Green Square Station.


My concern is wether or not the unit is overprice? And is the price going to drop within the next few years? I like the prospect of Green square shopping centre and the area seem to be developing quite well. I am just not sure if the increase in unit supply with drive the price down in future.

I'd look into what the surrounding existing stock is selling for.

I think it sounds like a high price for the size of the apartment. Remember its new now, but in 5 or 10 years it will be the old building.

Also keep in mind that, I think there is like 50,000+ apartments still to be built in those area's (Green Square, etc).
 
Hi So I did some more digging and the price for this project for another stage (off-plan, ready mid oct 2016) is already up to 850k for the same size and are all sold out. Also there are not many terrace on sale, and it's 1Mil+ for those properties.
This project is going to open the ground floor for shops. My plan is to wait for another 3-5 years and then see if it's good time to sell. Just not sure if other apartments would drive down the price.
 
I think many investors may have the same mindset as you. To sell after few years but what would make your apartment different from other sellers? I used to live in rockdale apartment complex and I had to compete with other investors or owners when comes to sales. I will never buy an apartment in a big complex ever again.
 
If you buy in a big complex, you must have a couple of selling points over the rest in the complex. For example, you buy on a corner lot which good aspect. You buy on a higher floor with views, or you buy one that has a massive main bed room or big entertainers balcony that will sure get some serious buyers on the first inspection. It's the average apartments in the complex that go no where.

When I first read your post, I notice you are spending 700k on an OTP with only one bathroom. Your first mistake is only 1 bathroom. You loss half your rental market because a majority of the renters in Waterloo will share the unit with another renter. The person(s) in the main bedroom want their own bathroom. You already have a disadvantage because I am sure other units in the block come with two bathrooms. That going rental per week in Waterloo, is that for a 2 bed with 2 bath? The extra bath is usually 50 bucks extra a week.

By the way, OTP prices are marketed for international cashed up investors. why not just by a second hand one in the same area and save yourself 100k. If you were moving in, I can see why you want OTP brand spanking new to live in.
 
The reason I choose this apartment is because compare to other OTP apartment, the price is 100k lower. This apartment is already finished and ready to move in. I think I will be staying there which is why I choose to by first hand, and I do like the facility of the complex. It is a corner apartment.

Secondly, there are apartments with 2 bath but the price is dearer by 80k. With this apartment I am thinking of adding extra bathroom with budget around 10k. So I have thought about that. It should add value to the apartment when selling.

Still main concern is wether the future supply in this area will effect the price of the apartment.
 
Sounds fair value to me

Lots of friends/colleagues/friends' friends have bought in Waterloo in the last few years. They've all made money.

The demand will always be high due to proximity to city. Young professionals love the area.

Cheaper than comparable 2br OTP prices in Chatswood and other northern suburbs which are a lot further from the city (though on train line).

Obviously, I dont know the exact development. But based on the limited info, doesn't sound unreasonable to me.
 
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