Buying (Non-OTP) New Apartment (Abbotsford, VIC) Developer Discounted

Hi all,

Need some advise, thoughts, opinions, musings, criticism and whatever you're thinking of after reading the following.

Dwelling : Medium-High Density Apartment (500 units spread over 4 blocks, each block has 8 levels)
Location : Victoria Street, Abbotsford 3067 VIC
List Price : $620,000 (I believe this was much higher when it was advertised OTP 48 months ago, probably closer to $700,000)
Area : 70 SQM internal + 20 SQM balcony + 1 Carspace + 1 Storage Cage
Type : 8th Floor (highest level) Apartment, 2 BR, 2 Bath, 1 Car, 1 Storage Cage
Status : Completed, ready to move in (most owners have moved in)
Facilities : 2 x Electric BBQ pits, 1 x Library, 1 x Heated pool, 1 x Gym, 1 x Lounge, 1 x Rooftop lounge, 1 x Green Garden & 1 x Rooftop BBQ
Body Corp : $2.5k pa

Story :
Developer has sold 475 units in this 500-unit development and is looking to offload the final remaining 25 units.
Discount on offer is 8% off the list price.

That would mean, final price would be $570k for a 2 BR, 2 Bath, 1 Car, 1 Storage cage, COMPLETED (Non OTP mind you!) Apartment in Abbotsford 3067. After inspecting, fittings and furnishings are top notchc (Smeg appliances and fittings all the way through in the kitchen), soft touch drawers/cupboards).

That comes up to about $8.1K per Internal SQM or $6.3K per Total SQM. Also includes Car Park & Storage Cage (most people need to fork out an additional $70k ? $100k for these in the CBD or Inner City apartments).

Tram stop is right outside (109 tram), Train station is close by, restaurants, bars, cafes, supermarkets, Woolies, Aldi, Coles, IKEA all around the corner. Parkland and river just behind the development, and good views.

Project is backed by NAB. Valuation from NAB came back at 100%, and they are willing to do 90% LVR on this apartment. Valuation came back at $620k, but after developer's 8% discount, they are selling at $570k. That's a $50k instant equity that we have gained.

Partner and I have a $100K Deposit ready to go. Parents are willing to top up with $200K (if we need, we can convince them, but we don't see it as necessary at the moment).

We draw a combined after tax salary of $8k nett per month, and have no debt at the moment. Been together for 9 years, doesn't look like we're gonna leave each other any time soon ;)

What does everyone think? Am I missing anything here?

Oh by the way, will claim that FHOG stamp duty discoucnt, and the FHOG $10k as well. Makes the deal all the sweeter.

Any caveats I should be looking out for? This is not OTP, so all the OTP caveats do not apply here.

PS: Plan is to purchase this as an owner occupier (to get FHOG). May continue to live in or rent out or sell (circumstances in life always changes) after 12 months of holding it.
Sounds like a deal Investar has been a member?


Thats the one.
Dodgy much? Will probably loose alot of customers if they keep going down this route of flogging otp or " negotiated heavily discounted" property off to their customer base.

G497 you do realise it is a cashback deal? So you still have to have all the funds and finance for the full price. Then ( from what they say) give you the cash after settlement.

I sell otp properties. At this point of time, good projects are normally sold out before it's completed. Best units are sold within first month it's launched. Leftover ones normally have negative aspects such as facing other building. You can buy it at a discounted price, but you'll most likely sell it at a discounted price too
70 SQM internal is not really that big for AUD620 is pretty much over priced.
there is something suspicious abt giving a 50K discount
Also with 1000s of apartments being approved - there wouldn't be much gain there.