OTP buying - Fortitude Valley -2016 completion

2. How does the developer just 'break the contract'? I've been in the property development industry for eight years. In that time I've seen developers let buyers out of contracts and never seen a developer 'break a contract' to sell to another buyer at a higher price.
I'm sure I've read a few stories on SS regarding this as well as it being in the media :confused:
 
OTP, IMHO, inferior because:
- you don't know what you are getting, greedy developers can change the fixtures and fittings on you, can vary plans and redevelop common areas, can build next door and take your view, can ask for more money in rising market (some), can alter and provide alternative car space, etc...
- buying brand new means you are paying a premium price for the property, a similar in the area can cost less, and extra equity can be created with renovation potential
- strata can increase 100% in a year, you don't know the deals, and what developer retains as a %
- basically you do not know exactly what you are getting with the OTP as compared with what you buy at present and have seen what you are getting for your money!
- you do not know the % of owners to renters
So just some of the reasons...
Thanks for the sharing MIW,

so in regards to:

- you do not know the % of owners to renters

It is difficult to know how. Isthere any way to know the percentage using RPData or some other premium search engine tool ?
 
I've tried to do this analysis for a number of buildings in Brisbane, easiest way is one of the online databases (I used Pricefinder). Compare the buyers address to the address of the property - if they are not the same then fair assumption that they are an investor.

This information will not be known until the title transfer has occurred and in my experience it can take some time until the information appears.

In high density apartment buildings it wouldn't surprise me if the investor % is >90% in Brisbane and of this more than 50% is interstate or off shore.

One example of a building with >200 apartments on Ann St, the breakdown was;

Ownership Unknown : 29 (unsold / unsettled when I checked the data)

Likely Investors
NSW: 73 (34%)
QLD: 42 (19%)
China: 17 (8%)
WA: 16 (7%)
Vic: 7
C/- onsite manager: 5 (2%)
Singapore & Malaysia: 4
SA, NT, ACT: 4 each

SMSF (Where the naming of the title holder includes text suggesting SMSF, so may be many more than this)
WA: 3
Vic: 2
NSW: 1
QLD :1
Total: 7 (3%)

Owner Occupiers: 3 (1%)

Thus, of the properties where the ownership was known only 3 were owner occupiers. Of course the 29 that were unknown may increase this number.

Trev
 
Top