Buderim

[Bushranger]

http://www.realestate.com.au/cgi-bi...r=&cc=&c=63741483&s=qld&snf=rbs&tm=1239795659

Off the plan. Total 60+ units/townhouses in complex. Construction of Stage 1 (approx 20 units) to start in May finish December.

2 bedroom - listed value $349K, minus 9K discount on signing contract, minus 10K rebate on settlement = $330K. I interpret this as a marketing exercise and the bank would value at $330K on settlement. Minus $21K FHOG would bring the real cost down to $309K.

My question is from the perspective of a first home buyer, rather than an investor, looking to buy and signing a contract to settle in 6 months (realistically factoring in any potential delays in completion, - do you think this property is likely to retain or increase its value over the 6 months+ to settlement?. Opinions sought from locals who may know this market. My only concern at this stage is regarding price falls in the next 6 months or so.

 

[sunshine]

I remember reading a report this year on property sales on the Sunny coast. Houses had done OK, but apparently there were 600 odd units on the market and only 39 had been sold. I think it was in My Property Review.

Then another article on downsizing and units becoming the choice of home, particularly for the retirees.

In this market I think it comes down to heads or tails?? Who really can predict what will happen if the FHBG is removed.

My observations on units, especially in Mooloolaba, is there are a lot around and prices are a bit on the soft side. Could you do better there?? Dunno.

I know this development site really well. I have watched the build commencement date get put back, and back and back again. Was supposed to commence last year and finish this June. Then commence in March and finish in December. Now it seems commence in May and finish in December.

When last I checked, they were showing 11 of the units sold. Unsure what they need for finance.

Any particular reason this one looks good for a PPOR. Just curious to see who is buying. They will be the closest unit to the uni, and I thought there would be interest from parents of Uni students, but wondering if there would be families interested in the 3 and 4 bedders.

Sunshine

 

[sunshine]

As an aside Bushranger, across the road from this development, 3 separate blocks have been on the market for quite a while. Ideal for the developers (especially in one line), but doesn't appear to be too many keen to buy at the moment. One of the blocks, with a 4 bed house is up for auction this Sunday. 2200 odd block. Unsure if Easter visitors were looking or what, but there was a lot at the OFI on Sat.

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=84103331&s=qld&tm=1239838319

It will be interesting to see the auction. Around the corner in Toral Drive a property in similar state, but double the land, only got to the $600ks at auction and on the market in the $700ks.

Could be worthwhile. I will be there for a look see. Won't be putting up my hand though, still digesting recent purchase in this area.

Sunshine

 

[csc]

on paper it looks ok but ive always been very reluctant to buy anything off the plan..............makes me think the developer doesnt have the funds to push through with the completion of the building development until they can show the banks they have X $$ amount sold..........i know thats not the way most are but it is cause for caution in this market climate to ensure you do your homework before comitting to this type of project.

interest rates are low now but can you afford to keep the property should rates turn around over the next 5 years and be close back to double digits???

think of every bad senario along with the positives you will already have considered.

Buderim has been pushing along nicely last few years with units etc..........cant be far off taking a breather.

good luck

 

[sunshine]

do you think this property is likely to retain or increase its value over the 6 months+ to settlement?. Opinions sought from locals who may know this market. My only concern at this stage is regarding price falls in the next 6 months or so.[/I]

Hi Bushranger

A 220 unit build is to commence tomorrow across the road from this development. Not selling off the plan, but apparently, will be for sale on completion. The development is called Atrium or something like that. Entrance will not be on Stringybark road, and they do not front Stringybark road, but will sit behind the 3 properties currently for sale.

They will be 4 stories high and have an underground carpark.

Would be interesting what the vals come in at if they were to complete together. That is a big risk to factor in if you decide to purchase OTP.

BTW the property for auction was PI no bids. All 3 properties are on the market because of the development at the back.

Sunshine

 

[super_sam]

makes me think the developer doesnt have the funds to push through with the completion of the building development until they can show the banks they have X $$ amount sold..........i know thats not the way most are but it is cause for caution in this market climate to ensure you do your homework before comitting to this type of project.

Pretty much all lenders will ask for 100% debt coverage or 50% presales nowdays. Some private lenders may ask for less but will take an equity stake in the project. A developer trying to drum up some presales does not mean they are struggling to complete, it probably means they are preparing themselves for their finance application