New estate property buy or not to buy!?!

[huntresslove]

Hi, i've been looking at the new estate in Greenvale. large houses for around $300K.

Just wondering what everyone's opinion regarding buying new estate.
considering because places like taylors lake and point cook are just new estate a couple of years back and price have gone up a noticeable amount.

they tend to be more owner occupied so hopefully not a investment dump.
have benefit of higher depreciations and save on stamp duty.

 

[Jacque]

Hi Huntress

The Old vs New debate has been discussed on here several times and there are certainly advantages and disadvantages to buying new, as there are old. You really need to weigh the purchase up depending on what type of investor you are (hands on or off) and your financial situation, as there are many variables to consider. I was interviewed for an article about this very topic late last year for API magazine- see link here to the full story.

http://www.housesearchaustralia.com.au/media/old-vs-new/

Best of luck with your final decision

 

[Wunderbar]

I really must employ Lend Lease's PR spin doctors. They've done a good job on promoting Point Cook et al

 

[Deltaberry]

That's why they're a listed co and the ring of suburbs is in mortgage stress

 

[Wunderbar]

Yeah despite that their share price is pretty crappy. I guess spin only gets you so far...

 

[CHam]

Hi Huntress,
I have just had a quick look on Realestate.com and if you can find me a large house in Greenvale (presume you are talking VIC) for $300k with land please tell me where (as I will buy one!). In my quick search the cheapest land only I could find was $235k!

 

[zed_kid]

Is this for IP or PPOR? For IP purposes new estates are not ideal, throws scarcity out the window when they build everything in bulk. I’d look for a 1bedder unit IP closer to the city.

 

[huntresslove]

Hi Huntress,
I have just had a quick look on Realestate.com and if you can find me a large house in Greenvale (presume you are talking VIC) for $300k with land please tell me where (as I will buy one!). In my quick search the cheapest land only I could find was $235k!

Hi Cham, i'm talking about vic. its off plan purchase hence stamp duty saving.
looking at what this group is selling.

http://www.masslandproperty.com.au/Investor-Hotspots/Greenvale-Lakes-QLD.aspx

 

[The Y-man]

A few things perhaps to think about:

new estate a couple of years back and price have gone up a noticeable amount.

By this you are implying that prices did not go up a noticeable amount in non-new estates....

have benefit of higher depreciations and save on stamp duty.

Keep in mind "higher depreciation" is antoher way of saying "loses value quickly"

"Save on stamp duty" - yes, but not "I save on stamp duty". The ultimate beneficiary is the developer. Instead of paying the government, you are paying the developer (in profit etc)

The Y-man

 

[huntresslove]

A few things perhaps to think about:



By this you are implying that prices did not go up a noticeable amount in non-new estates....



Keep in mind "higher depreciation" is antoher way of saying "loses value quickly"

"Save on stamp duty" - yes, but not "I save on stamp duty". The ultimate beneficiary is the developer. Instead of paying the government, you are paying the developer (in profit etc)

The Y-man

hi Y-man,
thanks for your thoughts, very good points.

i guess was just think it would be more affordable and have lowering holding cost due to depreciation.
and as long as it still had captial gains thought it would be a good start.

 

[CHam]

Hi Cham, i'm talking about vic. its off plan purchase hence stamp duty saving.
looking at what this group is selling.

http://www.masslandproperty.com.au/Investor-Hotspots/Greenvale-Lakes-QLD.aspx

Hi Huntress,

The link states projects starting from $440k with an expected rental return of $410-$430 p/w (or 4.8%)? Although it does seem a bit cheaper than the others in the market not quite $300k (or is there another tab with other places for sale that I am missing)?

Cheers,

 

[huntresslove]

Hi Huntress,

The link states projects starting from $440k with an expected rental return of $410-$430 p/w (or 4.8%)? Although it does seem a bit cheaper than the others in the market not quite $300k (or is there another tab with other places for sale that I am missing)?

Cheers,

I saw the 300K under this link
http://www.masslandproperty.com.au/Investor-Menu-of-choice.aspx
right down the bottom, but you could be right that might not mean Mel.
and i haven't really looked into on how much money back they offer and things.

 

[huntresslove]

Cham,
found cheapest land $229k
already build homes $330k
link below:

http://www.domain.com.au/Property/For-Sale/Land/VIC/Greenvale/?adid=2008792814

http://www.domain.com.au/Property/For-Sale/House/VIC/Greenvale/?adid=2008888328

 

[CHam]

Cham,
found cheapest land $229k
already build homes $330k
link below:

http://www.domain.com.au/Property/For-Sale/Land/VIC/Greenvale/?adid=2008792814

http://www.domain.com.au/Property/For-Sale/House/VIC/Greenvale/?adid=2008888328

Appears to be the general rules they use for all of their project fundamentals (ie. they only build and sell properties in the $300k to $500k range, along with the other conditions listed). I think the actual starting price for the Greenvale estate is $440k (which may still be a reasonable price considering the median is apparently $515k according to RealEstate.com.au) - just depends what you get within the deal....

 

[CHam]

Appears to be the general rules they use for all of their project fundamentals (ie. they only build and sell properties in the $300k to $500k range, along with the other conditions listed). I think the actual starting price for the Greenvale estate is $440k (which may still be a reasonable price considering the median is apparently $515k according to RealEstate.com.au) - just depends what you get within the deal....

Pity too.....I was getting excited!