Buying a Villa, things to look out for?

[Hysteria]

Hello, I have looked at a few villas coming up for sale but I have only purchased houses before.
The villas are yet to be constructed and they are in the town of emerald, they are central and not in a flood area. They are a 2/2/1 and the builder is asking 325k with a rental apprasial of 650-700 pw. There is no gym or pool and there are 20 villas in the complex. All the villas are on level ground so no lifts etc.

Just a few questions I have:


Would you consider 20 villas in a complex to be to much or is this normal?

I have not received a disclosure from the real estate. They said about $25 per week for body corp. Does this sound about right?

Do banks have the same lending criteria over villas vs houses?

When a agent/builder has his new build price advertised is there normally much negotiating room on the advertised price? I suppose this would come down to on how well the sales are going.

Thanks

 

[DaveM]

Who is doing the appraisinig of $700pw rent? The developer?

Get a third party evaluation. While 650-700pw is a great return, its only if you actually get that.

 

[The Y-man]

Hello, I have looked at a few villas coming up for sale but I have only purchased houses before.
The villas are yet to be constructed and they are in the town of emerald, they are central and not in a flood area. They are a 2/2/1 and the builder is asking 325k with a rental apprasial of 650-700 pw.

How does this compare of other houses/rents in Emerald?

What is the demand of villas like vs houses in Emerald? (both for rent and for sale)

There is no gym or pool and there are 20 villas in the complex. All the villas are on level ground so no lifts etc.

Just a few questions I have:


Would you consider 20 villas in a complex to be to much or is this normal?

That's a fair few even from a Melbourne perspective. Can be difficult to get things done by the Body Corp

I have not received a disclosure from the real estate. They said about $25 per week for body corp. Does this sound about right?

Depends on what is covered under the body corp - I assume if it just the the main driveway and associated public liability insurance, it might be right.

Do banks have the same lending criteria over villas vs houses?

Often comes down to floor space and the land component.

When a agent/builder has his new build price advertised is there normally much negotiating room on the advertised price? I suppose this would come down to on how well the sales are going.

Thanks

Maybe start at 30%-20% below asking if it is genuinely interesting.


Have at least a 20% deposit handy in case the bank valuations don't come in quite right.

The Y-man

 

[Hysteria]

Who is doing the appraisinig of $700pw rent? The developer?

Get a third party evaluation. While 650-700pw is a great return, its only if you actually get that.

The apprasial was done buy the agent selling the properties.

 

[DaveM]

The apprasial was done buy the agent selling the properties.

Get an independant assessment. The selling agent could tell you it will rent for a million dollars a day, doesnt mean its true.

 

[Hysteria]

Get an independant assessment. The selling agent could tell you it will rent for a million dollars a day, doesnt mean its true.

Thanks Dave, will do this. Who is best to get an independant appraisal. Another agent? or is there companies that do this?

 

[jrc77]

For a start why don't you have a look at what similar properties are available to rent for in the area?

Otherwise talking to some other local property managers.

Also have a look at the average rental yields in the suburb - the figures the developer gve you are about a 10% yield - which I suspect is not believable.

Regards,

Jason

 

[BAJ]

Try a valuer

Thanks Dave, will do this. Who is best to get an independant appraisal. Another agent? or is there companies that do this?

Hi Hysteria....why not try a local valuer....... they are mostly fully independent and just pay him or her for their time.

 

[eddy123]

Hi Hysteria, how did you go, did you end up getting the property?

 

[Andrew_A]

Hi Hysteria....why not try a local valuer....... they are mostly fully independent and just pay him or her for their time.

A very sound idea! Interested in the updates as well.

Mining towns have been resembling a ponzi scheme is some towns in QLD, a lot of money to be made by those with excellent timing though.