How does this have an effect??

[melbkid]

Sorry for all these random posts as of late but Im pretty close to getting into my third investment and I want to know your thoughts on the following scenrio??

Location : Doncaster.

(Im not investing there but im using it as an example as theres plenty of new apartments going on there)

Example Property

A 5-6 year old 2 Bedroom Apartment in a block of 10-12 in Doncaster close to Westfield Shopping Centre

Question


How do you think the price of something like this would have been affected the last few years with the Large Scale Apartment Developments going on at present around Westfield Shopping Centre??

Does the flood of Newly Built Apartments affect the pricing of the neighbouring older 2 Bed Apartment (Which would most likley have a bigger floorplan) for the good or the worse???

If it was your Apartment in Doncaster would you embrace the new high density developments or be worried about a influx of properties??

My opinion not everyone wants to pay high body corporates and live in these Big Complexes so the more Boutique Blocks (Even though they are older) would have to rise in value with developments going on around it??

Does this make sense??? (I hope so)

Love your feedback!

Thanks

 

[Peter_Tersteeg]

Long term the boutique smaller appartments are going to be more desireable simply because they have lower BC fees, especially where there's no lifts, pools, etc.

In the sort term, the large supply of newer, nicer looking appartments is going to increase supply and will reduce the value of the older appartments from both a rental and sales value perspective.

One of the big problems in Docklands, Southbank and CBD is there has been a constant supply of new appartments for over a decade now. Whilst there has been growth in these areas, it has not been anywhere near as good as areas only a few km away. Premium appartments, such as the waterfont developments, have done very well, but others have looked good, only to have the view destroyed by a new building 3m away from the living room window.

Essentially I'd suggest that if you're going to buy in a high development area, buy something with an X factor that can't be taken away.

 

[melbkid]

Thanks,
My opinion is the X Factor with all Boutique Blocks is you feel like you actually feel like you own the apartment rather than feeling like your one of many. You have control over Body corporate decisions and make an impact on what is done on the building???? Also generally much larger bedrooms and living areas???

 

[Jake Milne]

Long term the boutique smaller appartments are going to be more desireable simply because they have lower BC fees, especially where there's no lifts, pools, etc.

In the sort term, the large supply of newer, nicer looking appartments is going to increase supply and will reduce the value of the older appartments from both a rental and sales value perspective.

One of the big problems in Docklands, Southbank and CBD is there has been a constant supply of new appartments for over a decade now. Whilst there has been growth in these areas, it has not been anywhere near as good as areas only a few km away. Premium appartments, such as the waterfont developments, have done very well, but others have looked good, only to have the view destroyed by a new building 3m away from the living room window.

Essentially I'd suggest that if you're going to buy in a high development area, buy something with an X factor that can't be taken away.

I'd like to nominate PT_Bear for BA of the year 2013. Couldn't have said it better.

 

[TMNT]

I'd like to nominate PT_Bear for BA of the year 2013. Couldn't have said it better.

Why? For any relatively experienced investor who thinks with their head and not heart, the points mentioned are basic fundamentals

 

[JASA]

I'd like to nominate PT_Bear for BA of the year 2013. Couldn't have said it better.

I second that.