Hi All,
I am considering my first IP but still am open to homes in new estates or established homes. Just thought I'd get some of your thoughts for those experienced in this field of purchasing new homes in new estates as an invesment. It sounds tempting considering the stamp duty savings, depreciation benefits. Also my opinion is that when I purchase it early in the estate development phase, ppl are still reluctant to move and live there because of the lack of infrastructure and just the general stigma that it is not yet established. But give it a few years and it will be a place everybody wants to live in because of all the new infrastrucutre, new homes and landscaping. Of course this is not true for all estates.
Example, My friends bought in the chase estate in berwick 3 years ago. At that time the estate was about 3 years old ( so about half way thru in the development. I bought the following year. Currently, the properties in the estate are selling way approx 420 - 450k. When I bought it prices were about 350 - 380 k. Also, I managed to speak to the landlord of our neighbour and he said that he had 32 appications for his property. At at his current rents, it is positively geared. Just doing the sums on my 80 LVR home, it will also be positively geared if it was rented out. So, it has worked out very well. I did my research but didnt think that it would be quite as good as this.
So my question is, are there new estates that are worth investing in? I have read a lot about williams landing, and I have a feeling that it will do very well just like how so many of the point cook estates have fared well. What do ppl here think?
I am considering my first IP but still am open to homes in new estates or established homes. Just thought I'd get some of your thoughts for those experienced in this field of purchasing new homes in new estates as an invesment. It sounds tempting considering the stamp duty savings, depreciation benefits. Also my opinion is that when I purchase it early in the estate development phase, ppl are still reluctant to move and live there because of the lack of infrastructure and just the general stigma that it is not yet established. But give it a few years and it will be a place everybody wants to live in because of all the new infrastrucutre, new homes and landscaping. Of course this is not true for all estates.
Example, My friends bought in the chase estate in berwick 3 years ago. At that time the estate was about 3 years old ( so about half way thru in the development. I bought the following year. Currently, the properties in the estate are selling way approx 420 - 450k. When I bought it prices were about 350 - 380 k. Also, I managed to speak to the landlord of our neighbour and he said that he had 32 appications for his property. At at his current rents, it is positively geared. Just doing the sums on my 80 LVR home, it will also be positively geared if it was rented out. So, it has worked out very well. I did my research but didnt think that it would be quite as good as this.
So my question is, are there new estates that are worth investing in? I have read a lot about williams landing, and I have a feeling that it will do very well just like how so many of the point cook estates have fared well. What do ppl here think?