Dilemma for Westmead off the plan purchase

Hi All,

I am in a bit if a dilemma if I should keep or sell a unit i bought in Westmead.
I recently purchased a Ground floor, 2 bed 2 bath 1 underground car space unit in Westmead. I purchased the unit for 500K and will be getting it for 485K after the grant. Now the developer is selling the units for a higher price.

http://www.realestate.com.au/property-apartment-nsw-westmead-117858943

I am not sure if I should keep this unit or sell it and buy a 7-8 year old unit in Homebush West (slightly bigger in size) on preferably Marlborough Road ?

What do you think in the prospects in the long term (10-15 years) for the unit in Westmead ?

Should I purchase a slightly bigger and split unit which is 8 years old instead on Marlborough Road in Homebush West as I like the floor plan and layout for the Homebush West unit ?

Regards,

Joe
 
Don't know specifics of Unit , but westmead is an area that has historically done well , we have looked at several times , just never found a bargain there , which says a bit .

Close to Parramatta , next to two major hospitals and TAFE .

IMHO a good solid long term investment.

Cliff
 
Adding to Cliff's list
- Good station (fast trains stop)
- Good school
- Parramatta park
- Easy access to all major roads

I was a bit worried about the over supply though.


I can't really say anything bad about Homebush West either :)
 
The grant is quite lucrative Joe. When did you purchase the apartment?

Whats your reason for selling (given that you'll lose the grant, etc)?

It may be possible for you to get a valuation ordered for the house at the 560k mark, instead of the 500k you have the contract at. You'll be able to borrow based on that valuation.

This will mean you've generated 60k in equity, giving you part/all of the deposit you need to purchase the older unit too. This will require your servicing to be strong enough, but if possible, you'll own both.

If your worried about prices falling etc, once your 6-12 month requirement is over, you could sell up and keep the grant. :)

And congrats on those numbers - very good gains in a short space of time!

Cheers,
Redom
 
Hi Redom,

I purchased the apartment in January this year. The reason for selling is that I like Homebush West area and split level apartments however the time i bought it appeared to me that prices were increasing almost every week so I was in a bit of a hurry to book something !!

I wanted to always purchase in Homebush West as I love the area but I settled with Westmead as I was not able to get my desired units on Marlborough road as none were selling at that time.

I know people have purchased in my complex in Westmead for 560K+ (2 bed + 2Bath) so it looks like I should just wait and see if I can also purchase the Homebush West from the equity unit in the future where i really want to live !!

Also I got bank valuation done recently from CBA for the loan to be approved however I do not know much they valued the unit for. Is there a way to find out how much the bank valued the unit ?
 
Marlborough side of Homebush is close to the cemetry which can be a buyer objection when it comes to resell.

I'd just stick with what you bought. You've made money (equity) already. Not worth the hassle for not much difference, you probably end up in similar position anyway.
 
Hi Redom,

Also I got bank valuation done recently from CBA for the loan to be approved however I do not know much they valued the unit for. Is there a way to find out how much the bank valued the unit ?

Did you go through the bank or Broker . If through the bank , depends on how well you get on with your " relationship manager "

Brokers will always give you the info , in my experience.

Cliff
 
Think about how much will you be left with after paying for selling costs (Agents fees, conveyancing/solicitor fees etc).

Applying for reval and releasing equity might be a better option.

Mostly brokers can order free valuation report.

Not sure how the grant works if you turn this into an IP?
 
Hi Redom,

I purchased the apartment in January this year. The reason for selling is that I like Homebush West area and split level apartments however the time i bought it appeared to me that prices were increasing almost every week so I was in a bit of a hurry to book something !!

I wanted to always purchase in Homebush West as I love the area but I settled with Westmead as I was not able to get my desired units on Marlborough road as none were selling at that time.

I know people have purchased in my complex in Westmead for 560K+ (2 bed + 2Bath) so it looks like I should just wait and see if I can also purchase the Homebush West from the equity unit in the future where i really want to live !!

Also I got bank valuation done recently from CBA for the loan to be approved however I do not know much they valued the unit for. Is there a way to find out how much the bank valued the unit ?

If you're loans been approved, CBA would use the contract price. :)
 
You're just getting started.. Selling is a waste of money but that's just my opinion.

Have you considered revaluing in a few months and draw the equity then buy a second property? There may be a few options...
 
You're just getting started.. Selling is a waste of money but that's just my opinion.

Have you considered revaluing in a few months and draw the equity then buy a second property? There may be a few options...

Agree with this.

Selling is an important part of a strategy and can be a good risk mitigation tool.

But you may have alternative options in this case that could save you the costs involved.
 
Thank you so much every one. I will hold on to the purchase and try and buy in Homebush West in the near future.

I know there is a lot of people looking to rent in Westmead so will work out my finances and try and put this one on rent and purchase in Homebush West when I can in the future..
 
Westmead has better amenity and is likely closer walk to station than Flemo.

While westmead is a bit further out, if the hospitals stay in the region id expect cap gain no less than Homebush West.

In addition, there are a large number of mid rise units coming on in the flemingto homebush west area that are likely to soak up some demand

ta
rolf
 
This guy has been advertising for a while and i'm not sure how many of them are sold as he has about 400 + units in the complex with 5 blocks I think. Quality is just fine but not great. He kept all good unit till completion and is now selling them at a premium.

Westmead has better amenity and is likely closer walk to station than Flemo.

While westmead is a bit further out, if the hospitals stay in the region id expect cap gain no less than Homebush West.

In addition, there are a large number of mid rise units coming on in the flemingto homebush west area that are likely to soak up some demand

ta
rolf
 
There are 119 units in the whole complex.

95% of the units have a similar floor plan and most of the units are also 2 bed 2 bath. Very few units are 1 and 3 bedroom.
 
Its been 5 months but the number was more than 200+.

I think floor plans did vary for every block he showed me when I checked because they are some blocks facing road and some inside with different orientation. They were few 2 bed and 1 bath too

When I enquired and went to his sales office, the agent did mention to me about 40+ units which he would like to sell more in the range of 550-600.

You can check about the floor plan and compare to yours to make a decision. Also the agent doesn't send a soft copy of the plans but insist on coming to the sales office.

There are 119 units in the whole complex.

95% of the units have a similar floor plan and most of the units are also 2 bed 2 bath. Very few units are 1 and 3 bedroom.
 
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