Appartments "off the plan"

[ivankram]

Thanks for tuning in,

I'm looking at buying one of thoes off the play properties in ACT...

Firstly how do you know a good deal?
I''m guessing things like price of simmilar appartments nearby.
The demand (time taken to sell them). What do you think?

Secondly, Is now a risky time to get one, or are "off the plans" very very unlikely to go down in price till settelment.. I'm thinking that if you select one carefuly, it should not decrease in price....

The thing I fear the most is, on setlement, having to pay the difference if it goes down in value, or selling for a loss b4 setlement...

Also this is to live in so capital growth is a must.

Also are their any really shoddy developers out there to avoid?

 

[agent007]

I'm far from been an expert but, I wouldn't buy apartmets or off the plan investments during current market conditions and property cycle.

I'd be interested in what the rest have to say.

Regards,
James.

 

[geoffw]

There's a huge number of units coming onto the ACT market. I suspect (and so do at least some agents) that the market will become flooded.

Bushfires might mask this for a little while- but unless the unit you're looking at has some real appeal, I'd be really careful. Especially as 500 home dwellers rebuild and move back home.

 

[mitch]

Gday Ivankram,you dont sound to confidant about buying this type of property and l think thats a good enough reason not too.If you buy things with conferdence you have enough motivation to carry you through the odd hickup but this time this type of property is throwing up a lot of "what ifs".It sounds a little too far out of your comfort zone. MITCH

 

[ocean view]

off the plan

I'm far from been an expert but, I wouldn't buy apartmets or off the plan investments during current market conditions and property cycle.

------------------------------------------------------------------------------------James.... I agree with this in Capital CBD'S in most states with off the plan units. But it does also come down to price before you decide
But I disagree with it in other areas. Off the plan will allways be a great buy as long as the demand is there for the purchases after construction or subdivision.

There are areas earning 30% growth right this minute & also land can be purchased off the plan which in some areas you can not get any. Demand is so high that these growth rates will continue for many years.

The market may be flat in SYD , MELB ect but is screaming in other areas. For different reasons

cheers ocean

 

[Mick A]

Appartments off the plan

I live in Canberra and I am continually studying the local market. I would be extremely cautious purchasing off the plan at this time. Based on projected population increases and the amount of apartments in the pipeline, in my opinion prices could be flat or even fall in the short term. The rental market is tight at the moment, but this has occured as a result of the bushfires. Approx five hundred appartments are due to come on line over the next eighteen months. I am not sure where the renters will come from to tennant this stock.

Regards

Mick A.

 

[Les]

G'day people,

Almost lost was this statement from Ivankram :-

Also this is to live in so capital growth is a must.

Does it make a difference where property is bought to live in (as opposed to an IP)? This is not a straight-out IP from the sound of it.

Does this change any of the answers wrt Canberra?

Regards,

 

[geoffw]

With respect to vacancy rates in Canberra. I had understood that vacancy was 3 to 4% in Canberra- not as tight as 12 months ago, but still OK for landlords.

I have three cottages in North Lyneham. They rent out at about unit rates- but the tenants really like them because there's garden and a bit of character.

One cottage was advertised for inspection today- open for 15 minutes. About five groups dropped by, and three submitted applications. Not as many as the better cottage advertised in April last year, but a good response. Most were students.

The previous tenant broke the lease- but that gives me the chance to repaint and recarpet, at $30 pw higher rent.

Les, any growth in Canberra is capital growth by definition.

But I suspect the growth for units in Canberra will not be high. A similar thing happened in the early 90s (I was not "into" property at the time, so it's not an insider's viewpoint).

Townhouses were being built at a rate of knots. Many of those townhouses went down in price for some years afterward.

A friend had to delay her retirement for a year as a result.