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[windyzz]

Are you sure they actually leased out at that amount but not referring to the asking price? because generally they are all negotiable...

And when you look at Rhodes....... oh dear Rhodes................

I've had friends that bought Rhodes OTP vacant for a month...they need to reduce their rent to meet the current 2nd hand unit rent to get tenants.... and my other friend even offer 1 week free rent...... all bought in Rhodes/Wentworth Point.......

Agree @ wentworth point and Rhodes is Very bad. But that's due to over supply in that area. It depend on the area. For example in Westmead the vacancy rate is 1.6%.

Also with Rhodes, and Wentworth point, these suburb are still fairly new. so the old established one is generally around 5-15 years old, and they're roughly have the same function and feel like the new one (i.e. 2 bed 2 bath, with lift, and secure car space).

Where if you look at some more established suburb (i.e. Lane cove, or Westmead). the old unit can be up too 40-50 years old and they're completely feel different to the newly build units. Generally they're like 2 bed and 1 bath with 1 unsecure carspace.

For example: this 1 bed units is already leased for 570
http://www.realestate.com.au/property-apartment-nsw-lane+cove-415367479
http://www.realestate.com.au/property-apartment-nsw-lane+cove-415367447

This 2 beds is still advertised for 750, in the begining of the year, there were more 2 bed 2 bath in the same building with 2 carspace was leased for more than 800 PW
http://www.realestate.com.au/property-unit-nsw-lane+cove-415312199

The old one surrounding (next street) for 2 bed 1 bath is advertised for 470
http://www.realestate.com.au/property-unit-nsw-lane+cove-415365339

 

[windyzz]

45k in 5 years is a very poor CG, I would expect in 5 years you should be at least 800k value not 695k. Which makes me think they over valued the apartment when you bought OTP

I bought established for 500k about 3 years ago and would be about low to mid 600s (620-650k) is my guess but would def be worth more than 600k due to one selling across the road unrenovated and 1 less bedroom.

That value is the price of the strata ... The price that i bought is 426k in June 2010 and it has increased to 650 (just refinanced last week)

 

[sumterrence]

45k in 5 years is a very poor CG, I would expect in 5 years you should be at least 800k value not 695k. Which makes me think they over valued the apartment when you bought OTP

I bought established for 500k about 3 years ago and would be about low to mid 600s (620-650k) is my guess but would def be worth more than 600k due to one selling across the road unrenovated and 1 less bedroom.

I think Windyzz is referring to Strata Fees

 

[windyzz]

It's not OTP though, it's around 2-3 years old when I bought it. But the cashflow from the depreciation i have to admit is Very good.

I got quite a lot back from tax return every year which helps me with my cashflow. even when Interest rate at the time was 6.5-7%.

 

[CosmicTrevor]

Marketing

Woz, back to your original questions and the material you have. Anything provided by the REA/Project Marketer is not independent.

As others have said the valuation is meaningless to a bank. While it might be reflective of the value of a apartment in the area the bank will value it once the OC & individual title is released - so 2-4 weeks prior to settlement probably. What you need access to is the settled values of near new properties in the area - subscribe to Pricefinder/RP/Residex to get that. Pricefinder is $200 for a month I think - well worth the investment. Use this data to compare price/sqm for other OTP / near new and existing in the area.

The depreciation document you have will be an estimate only. Unless the schedule is included as part of settlement you will need to fund that yourself.

Reduce the REA provided rent appraisal by 10% to see if the economics still stack up and then try 20%. Do your own research - each day trawl through Domain/Realestate and record what you see, compare it back to the appraisal.

Get a lawyer to review the contract if you are set on proceeding, look out for;
1) sunset clause - it can work for you and against you
2) access to the deposit by the developer - a big no no
3) things you can't object to - I seen some crackers in these sections
4) how long you have to settle (typically 14 days including weekends/hols)
5) defects period and process
6) inclusions

I'd only go OTP if you can secure a apartment that has a difference about it; view, aspect, size...

Trev