i got 30k, last year of uni (not much income), can only buy of plan need help...
- Thread starter very_ready
- Start date
I wish I had stumbled on this forum before making my OTP purchase...
would be nice if you can share your experience with very_ready
There are decent term deposit rates at the moment. Or just a high interest online account. You can get in the region of 7%.
Your time frame is too short for shares to be worth the risk of going negative.
OTP is a good way to make a developer and agent rich. Some OTP stuff works out very well but that is usually because the market rises unexpectedly in the intervening period. Occasionally there are good deals, but you probably have to know someone.
what gets me thinking is that vogue is 300 apartments of which approx 20 are left on the market.
All these people would have invested to either live there or make some money.
any thoughts
All these people would have invested to either live there or make some money.
any thoughts
agreed, thats why when i was looking i was looking in bluechip areas so if the market didnt rise unexpectedly, i could sell it for what i bought it (not make a loss)
Potentially 300 rental apartments to come on the market at the same time!
Cheers,
The Y-man
Thanks for sharing that.
JoshyBoi i really hope you can get it sold ( im sure u will )
JoshyBoi i really hope you can get it sold ( im sure u will )
This sounds ok, close to a freeway access to the city, smaller development so not so many to compete against, larger than Vogue one, same No of beds car etc.
Doncaster has heaps of amenities, good transport by bus and is close to Box Hill too
Personally, I'd buy this one and do a CBD apartment next time. I can understand your rush as all the media is in a frenzy about Melbourne at present.
If you have to buy anything this is the one but also waiting unitl you understand the game a bit better (lots of reading the books mentioned by people here) might pay off too...up to you really.
I completely empathise with your thoughts, very_ready.
Having limited funds myself, I recently chose to get an OTP apartment in Coburg, which is projected to be ready in 2 years time.
Are these Doncaster apartments near the Westfield Doncaster shopping centre? I was also looking at them, but they were in Zone 2 and had high body corp fees (pool and gym).
I completely agree with Savanna's comments re: the good bus system but for transport, it is limited to either bus or car.
...
@ Y-Man - would prefer to buy 30k worth of diamonds... women's best friend (apparently)and easier to carry around.
Having limited funds myself, I recently chose to get an OTP apartment in Coburg, which is projected to be ready in 2 years time.
Are these Doncaster apartments near the Westfield Doncaster shopping centre? I was also looking at them, but they were in Zone 2 and had high body corp fees (pool and gym).
I completely agree with Savanna's comments re: the good bus system but for transport, it is limited to either bus or car.
...
@ Y-Man - would prefer to buy 30k worth of diamonds... women's best friend (apparently)and easier to carry around.
Thank you for that Savanna, very helpful information.
Mazda, i think Coburg is a great place to invest!
The apartments in doncaster is on Elgar rd very close to Westfield.
Having limited funds really does limit my choices, im also opening up a business in a month ( which took a chunk of my savings, as the banks arent friendly these days )
I will explore doncaster further, any other suggestions would be great.
Thank you all
Mazda, i think Coburg is a great place to invest!
The apartments in doncaster is on Elgar rd very close to Westfield.
Having limited funds really does limit my choices, im also opening up a business in a month ( which took a chunk of my savings, as the banks arent friendly these days )
I will explore doncaster further, any other suggestions would be great.
Thank you all
Out of the list above - Shares.
Lowest risk would be blue chips paying fully franked dividends.
You could use some leverage here if you wanted with a margin loan.
I would not be looking at options a, b, c, or e if I were you.
If it were me I'd be thinking about getting one of those high interest bank accounts that pay the interest monthly, and sticking the whole 30k in there. In 2 years you'll have more like 33k, and can work out what next.
Just something to think about. Finishing uni and getting your first professional job can be a time of upheaval, and it might be good to have that cash buffer. You can always invest it when you know what your job and income will be.
Just something to think about. Finishing uni and getting your first professional job can be a time of upheaval, and it might be good to have that cash buffer. You can always invest it when you know what your job and income will be.
Thank you for your thoughts, extremely helpful and eye opening.
I have been concentrating on buying OTP and didnt really explore any other options.
The apartment i was looking at in vogue got sold, kind of sad but im not going to beat my self up about it.
I still think a good OTP choice might be the right path for me, but i need to minimise the risk by making a smart choice.
If anyone can share what the main points to look at when considering OTP that would be greatly appreciate.
I understand its fustrating trying to educate a newbie but it really does help.
I have been concentrating on buying OTP and didnt really explore any other options.
The apartment i was looking at in vogue got sold, kind of sad but im not going to beat my self up about it.
I still think a good OTP choice might be the right path for me, but i need to minimise the risk by making a smart choice.
If anyone can share what the main points to look at when considering OTP that would be greatly appreciate.
I understand its fustrating trying to educate a newbie but it really does help.
Think of it as a lucky escape.
When the housing market turned in the UK there were a number of investors who had purchased OTP properties during the boom. They were then contractually required to complete, despite the apartments being typically worth significantly less.
The fact that the developers' prices were optimistic to begin with didn't help matters...
As another suggestion (and a bit of a question for other posters) how about a first time saver account?
If you opened one before the end of June then I believe that you could access it in July 2012 as it has to be held over four financial years. The government boost would increase your savings by 10% (if you drip fed them in), and it's taxed at a lower rate.
The downside is a lack of flexibility.
When the housing market turned in the UK there were a number of investors who had purchased OTP properties during the boom. They were then contractually required to complete, despite the apartments being typically worth significantly less.
The fact that the developers' prices were optimistic to begin with didn't help matters...
As another suggestion (and a bit of a question for other posters) how about a first time saver account?
If you opened one before the end of June then I believe that you could access it in July 2012 as it has to be held over four financial years. The government boost would increase your savings by 10% (if you drip fed them in), and it's taxed at a lower rate.
The downside is a lack of flexibility.
Graemsay said:
I had actually checked with my bank about this. The information given to me was that:
If I put money in such a saver's account to buy properties with, I will need to use the money within 2 years. If I didn't find a suitable property to buy within these 2 years, the money will be transferred to my superannuation fund.
I got worried about the last part. Means if I changed my mind in the 2 years and didn't want to buy a property after all due to personal reasons, it'll just get transferred to super. Won't be able to access the money in the short-term.
So I put my funds in a fixed-deposit term for 1 year.
VR, take a deep breath and slow down. Don't believe ANYTHING the OTP salespeople tell you.
Do you own THOROUGH research. Don't be blinkered by any emotional attatchment you may have to this complex. Hard numbers are what matter, remembering we are in a maket that has been booming for many years now.
What does an equivalent 2 Bed, 1 bath unit rent for on the open market? Forget rental guarantees if any.
What does and equivalent unit sell for as a resale 2-3 YO?
No balcony (WTF?), low floor, 60 sqm (tiny), 2 bedroom and ONLY ONE bathroom eliminates many sharing tenants, 4K PA body corp, OTP in these booming times. Sorry, has disaster written all over it.
Do you own THOROUGH research. Don't be blinkered by any emotional attatchment you may have to this complex. Hard numbers are what matter, remembering we are in a maket that has been booming for many years now.
What does an equivalent 2 Bed, 1 bath unit rent for on the open market? Forget rental guarantees if any.
What does and equivalent unit sell for as a resale 2-3 YO?
No balcony (WTF?), low floor, 60 sqm (tiny), 2 bedroom and ONLY ONE bathroom eliminates many sharing tenants, 4K PA body corp, OTP in these booming times. Sorry, has disaster written all over it.
Units4me - thank you for your insight, i agree with you 100%
i got carried away thinking worst case scenario i will sell in 2 years and make a bit of money but now ive come to realise that might not be the case.
Ive got my money in a term deposit for the time being.
I am still on the hunt for OTP BUT i will do my homework and research the area and investment properly...
i got carried away thinking worst case scenario i will sell in 2 years and make a bit of money but now ive come to realise that might not be the case.
Ive got my money in a term deposit for the time being.
I am still on the hunt for OTP BUT i will do my homework and research the area and investment properly...
I've seen lots of these so let me tell you how many of them go:
- you provide your deposit, thereby losing the utility of that cash for two years.
- meanwhile your financial plan is based on flipping the property on or about settlement because you figure you have two years of capital gain.
- a couple of months before settlement you start looking for finance and suddenly discover that either (a) the property doesn't value up and you have to kick more cash into the deal or (b) the lender simply won't give you a loan because they don't like your financial position, the development, are already over-exposed or the insurers think the same thing.
- at this point you get nervous because settlement is approaching and your deposit, now worth 10% less in real terms, is on the line
- you rustle up more cash or loans and make settlement by the skin of your teeth, but at least feel you can get everything back by selling the unit
- when you put in on the market you then find out 50 other people are in the same position and are all merrily entering into a dutch auction to get out with as much as they can.
Moral : never buy OTP on the assumption you can get "make your money" shortly after completion.
Exactly how much do you expect to be earning after you gain full time employment?
It sounds all good in theory, but without knowing how much you can borrow (or potentially borrow) up front, you could lose that $30k and run into legal issues because you couldn't get the finance.
I was recently looking at buying a block of land nearby and building, whilst all up i would've saved $100k if not more, the risks were too great. Plus i know that even with 3 months full time employment, i wouldn't qualify for a loan to that amount.
Also, brand new, in some cases can save a pretty penny, in others cost you an arm and a leg!
Yep, agree totally,. Just sit back and don't rush it. Be very careful what you're throwing your money into, so you don't throw it away!
Diamonds and gold, nice. But do you understand the market? I don't, so i can't comment, but i want to know your theory, and why you think it could be a worthwhile investment.
Shares, could be a little risky, if you don't understand the market.
OTP, you could lose it all. Or it could be a great opportunity, problem is you won't know before, only once it's complete.
Curious, what type of car would you pick up for $30k, and how would this be an "investment"?
Just like to know your thinking behind it all, rather than talk you out of it straight off.
Yep...
