Hurstville Unit

I have got a contract for a off the plan unit. It seems cheap but there are so many new units flooding the market at Hurstville. Unit due for completion in 18 months but they have a 40 month sunset clause.

Anyone got any thoughts about this?
 
Local boy

Depends on a number of things, how cheap is “it seems cheap”, what kind of strata fee are you looking to commit in 18 month if you were to purchase? Are there any other developments going on in the area?

I have never bought off the plan so not sure what implication of a sunset clause is. But from reading the article below, it seems to be an option for the developer to take benefit of the market condition (if price is go up or down).

http://www.jenman.com.au/news_article.php?id=147

Apartments in Hurstville will attract good rental yield but I am not convinced about its capital gain given the current level of supply and the market condition.

For some reason Hurstville now remind me of Auburn with all the brand new apartments that was selling 300k+ a few years ago.
 
There are about 4-5 big unit blocks going up. Yes the rental yield is great but as you have said the CG and the problem selling later on is whats stopping me.
 
Be extremely careful!

A lot of overcrowding is happening in Hurstville and it is now presenting a bit like the Campsie area.

Ensure you do your homework in regards to the builder. There are a lot of cheaply constructed units going up, that may, in the future have a lot of constructual problems. Make sure the builder has insurance!

A relative of mine bought one of those in Rockdale and there are a lot of problems - cracked walls, joinery not entirely up to scratch and bathroom problems.

While the return may be good what will be the body corporate fees be if structural repairs are needed?

My recommendation would be to buy a finished product - that way you can see what you get!

Peter
www.privaterealestate.net.au
www.cashflowcalculators.com.au
 
Something off the plan probably will be a good price. Developers often need to sell units off the plan and would probably give you a good discount for doing so.

I agree with the others that where there is an excess of supply over demand growth will probably be limited.

And I corrected the spelling in the thread title- it was Hurstvile, and that's probably not an image you want :)
 
I agree with the others that where there is an excess of supply over demand growth will probably be limited.

And if several blocks come onto the market all at once rents will suffer. It's the old supply and demand thing. Wolli Creek had similar problems at first. Not sure how it's going now.
Scott
 
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