Evergreen OTP in Ivanhoe VIC

[Tillie]

Friends signed the contract to purchase 2 bedroom 2 bathroom OTP apartment in Ivanhoe in Victoria. The developer is Kokoda and the development is called Evergreen. Anyone here has any experience or knowledge about the developer or the particular development?

Unfortunately they signed the contract without talking to me first, so I did not have a chance to warn them about risks in OTP developments...

 

[jpcashflow]

Hi

Hi,

Have a look of them on google they have some nice projects and they look like a high end developer.

Are they looking at living in the area or they are looking at this from a investment point of view?

 

[Tillie]

They are planning to rent the unit out for a couple of years but eventually move in it. They are not investors and certainly do not have afford the 'adventure' turn sour. Also my friend are always interested everything new and shiny

I checked the developer's website and other projects. Looks professional, but call me cynical... Anyone can make a fantastic websites but be anything but professional...

 

[Redwood]

They are planning to rent the unit out for a couple of years but eventually move in it. They are not investors and certainly do not have afford the 'adventure' turn sour. Also my friend are always interested everything new and shiny

I checked the developer's website and other projects. Looks professional, but call me cynical... Anyone can make a fantastic websites but be anything but professional...

Kokoda is a reputable developer - their office is in blackburn and they have done a heap of projects. You can check out montrose in hawthorn. Re price, I have the pricelist for this project, there are usually a few different versions out there.

What structure did they use to purchase and is the contract unconditional and who sold the apartment to them?

Cheers, Ivan

 

[Tillie]

Thanks a lot Redwood for your reply.

I feel better already. My friends do not have any investment experience, outside of compulsory super. I mean none at all. So it is fantastic to hear that at least the developer is not dodgy. They just fall in love with the nice new design, marble bench tops and pretty sketches. Good news is that at least they know the area and the development is on really handy and good location, close to public transport, shops etc. but away from main road.

I am not sure who sold the apartment to them. But I think that it might have be 360property group. I am not sure about the price either, has to be over $600k for 2+2+1, views to Mt. Dandenong ranges. They did not try to negotiate price down. They believed when the agent said that all 2+2+1 apartments were already sold and that one is only one left and no discounts. The deal is done and unconditional so nothing can be done now. I am just crossing my fingers that the deal is not turning sour and they did not pay hugely over the market value.

Also about the structure... They bought is under their own names. I found out too late to be able to influence the structure decision. But at least the developer looks okay

 

[DoAndroidsDream]

I'm fairly new to investing so forgive me, but was wondering why you would advise against a couple purchasing in both names? Is it to do with serviceability and risk management?

 

[jpcashflow]

Hi

Hi,

Why would buying in your name not be right?

Cheers