OTP advertising
- Thread starter woztrac
- Start date
Depend, I would avoid any OTP investment in Sydney for now. I believed we're in the peak of the market. IMO It's just too risky
Hiya
There's tonnes of posts on off the plan (or OTP). If you do a quick search on the forum you'll find heaps of info on the pros/cons (plenty of the latter).
Agree with the post above about purchasing in Syd - OTP can be quite dangerous in rising/peaked markets in particular.
I wouldn't concern yourself too much with their headline grabbing billboards either - it's all to generate hype and and a sense or urgency.
Cheers
Jamie
There's tonnes of posts on off the plan (or OTP). If you do a quick search on the forum you'll find heaps of info on the pros/cons (plenty of the latter).
Agree with the post above about purchasing in Syd - OTP can be quite dangerous in rising/peaked markets in particular.
I wouldn't concern yourself too much with their headline grabbing billboards either - it's all to generate hype and and a sense or urgency.
Cheers
Jamie
Please be careful, potentially there will be an over supply of an apartment in the pocket of inner city of Brisbane in the coming future.
Do your own research before making any decision.
IMO i would go and look for an old house/townhouse/villa in QLD for Investment (~15-20km from CBD) or a 2 bed established unit in Sydney (Liverpool, Campbeltown, or around Parramatta).
I believed unit/Apartment in Sydney around the west or south west has plenty of room to grow.
And yes the 60% sold is most likely including all the one that the developer is holding.
He advised that it wont be completed for 18-24 months and that may suit us better until we have to settle as we are building at the moment.
Should i avoid OTP completely?
It is not in inner brisbane it 10km out
That's ok, just make sure you do the research on the area surrounding it.
What I normally do with OTP purchases is look around in the same suburb for similar property which is around 3-5 years old, and the price should not be that much more (~ 30-50k more).
i.e. if you're buying 2 bed 2 bath apartment for 500k OTP, make sure that the sold price for the established 2 bed 2 bath (fairly new one) around the area are selling for around ~450k.
What I normally do with OTP purchases is look around in the same suburb for similar property which is around 3-5 years old, and the price should not be that much more (~ 30-50k more).
i.e. if you're buying 2 bed 2 bath apartment for 500k OTP, make sure that the sold price for the established 2 bed 2 bath (fairly new one) around the area are selling for around ~450k.
Was my thought exactly or what are his reasons...
I am no financial planner but Im sure if I went to Jamie he would steer me well clear if I was even remotely thinking of them (not that I would if you have a look at my previous posts).
He is likely to be breaching his duties under the corporations act by putting his interests above his own. He may be getting around 4% as a commission - half now an half on settlement.
Be very careful of your 'adviser'.
They all call themselves "Financial Advisers" but in reality they are just a normal sales consultant/real-estate agent.
Recently my friend joined a company selling OTPs and she claim herself as the Property financial adviser and she ask me if this is the same as what we do, and I gave her a full lecture of what advisers does and qualifications they need.
I wonder if these people will receive legal penalties as they sort of misleading the consumers to believe they are a qualified Financial Adviser?
Well maybe i should go with what he advised me a year ago, that was to complete the build of our house then look at an investment property.
But because of the market we wanted to get in so asked if there was something we could do now until we complete our home etc.
I guess i pushed for it but maybe that suited him?
But because of the market we wanted to get in so asked if there was something we could do now until we complete our home etc.
I guess i pushed for it but maybe that suited him?
Marketing
60% sold could mean;
1) 60% of that project marketers allocation
2) 60% of that particular tranche of apartments if it is released in stages
3) 60% of the entire project
4) a made up number to make it sound like it is selling well
Ask to see their list of available apartments and their prices, also ask your planner to disclose the commission they get on the sale.
My primary issue with some OTP deals is not just that you might be sold an over priced generic dog box of an apartment, but you are not being shown all the options available to you. My advice is to use a BA if you are not prepared to do your own homework.
60% sold could mean;
1) 60% of that project marketers allocation
2) 60% of that particular tranche of apartments if it is released in stages
3) 60% of the entire project
4) a made up number to make it sound like it is selling well
Ask to see their list of available apartments and their prices, also ask your planner to disclose the commission they get on the sale.
My primary issue with some OTP deals is not just that you might be sold an over priced generic dog box of an apartment, but you are not being shown all the options available to you. My advice is to use a BA if you are not prepared to do your own homework.
Need to clear this up. I was just asking the question re the advertised 60% sold. This is not actually the case with this.
What i have is
independant valuation report, BMT Tax depreciation chart, RE rent appraisal, inclusion list with branded kitchen appliances etc, floor plan with M2 sizing and building drawings and a list of all units for sale showing some held by developer.
Any other info i should be looking at at this stage?
Why do they provide it? I look at it as a comparison for equivalent properties in the area. Will my bank take back what is approved already?
