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used car dealers
pyramid sales
amway
spruik the honesty of their businesses
for the same reason
there are multiple threads on this forum about OTP
none about successful ones
Thanks, there have been a lot of good points raised.
I am trying to make sure I am not selling this to myself, while at the same time trying not to once again miss out on a potentially good deal. Basically, if the median price of apartments there is already over 700K, am I too hopeful in this apartment when time comes for settlement in 2 years to have gained a lot of equity by then.
No one has mentioned anything negative about the Newstead suburb yet. I think this is the development I am looking at : http://www.brisbanetimes.com.au/que...or-five-tower-development-20140723-zw64y.html
run away, quickly
otp valuations seldom materialise in the finished product
who would buy any other product, delivered in 2 years, that you could not see even a demonstration version.
If you order a bmw custom, it is based on the g85 in the dealer, you can ride it.
otp uses suckers as a source of cash to finance the build,
if values fall the developer will hold the sucker to the contract price and the sucker loses money paying for crap
if values rise, the developer will break the contract and sell the property to some other sucker at the higher price, still paying for crap
a rental guarantee is the developer's acknowledgement that the numbers do not add up, there is no reason to guarantee gold
the developer gets rich, nobody else does
If you can't see it and touch it, it does not exist
If you wish to continue, I have some shares of harbour bridge to sell, only 10k each
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.
The most common way of "breaking the contract" is for the developer to delay completion/settlement to past the date in the sunset clause, annul all contracts and invite the purchasers to cough up a higher price. Technically a breach of contract but very hard to prove and not worth litigating in most cases.
It is certainly not common, but by no means as rare as it should be.
Another reason why I don't touch OTP
Is it because it is over supply and higher pricing due to the marketing fee ?
how about if the developer offer a rental guarantee ?
So far, I see OTP is good for new First Home Owner since they don't have a ny other choice to be subsidized other than buying OTP.
There are plenty of threads about OTP and have put my feedback in them.
Not the over supply but more so it isn't good for investment with 50 units all coming on the market at the same time which means more competition which means you need to drop your rent to secure an early tenant or hope to get lucky. Once the twelve months lease is up you are in competition with other 12 month leases.
Rental guarantee is a joke, it is inbuilt into your price.
If the gov gave FHO 100k grant for exisiting houses for PPOR guess what will happy to the prices of FHO properties. Yes they can buy them but if two FHO both have 100k extra then they can both bid another 100k they didn't have before so the winners are the owners... Now translate that to the developers with OTP.
Hello,
Looks like an update I made earlier did not post. I did decide eventually to go ahead with the OTP in Newstead.
The building is going ahead of schedule which is good. Some large companies have also begun to move their HQ to Newstead which hopefully means good rental candidates.
This time next year, I guess i'll know if it was worth it.
This is the building I bought in: http://www.news.com.au/finance/real...ched-in-newstead/story-fndbalka-1227193560891
Take a look around the Brisbane CBD area and look at the cranes in the sky all building OTP properties. These will all be due for completion in the next 12-18 months so ask yourself what will make you unit so unique from all the others being built?
I'm sure the glossy brochure shows you will make capital growth and will never be vacant however do your own due diligence.
I'm all for buying established properties but that's a personal preference.
Cheers
Rental Guarantee hey ................ Ask them how much is strata first
From what I can gather OTP units in Brisbane, I'm glad that back in 2008/09 I didn't sign up for the lucrative so call 5 year rental guarantee, because I checked the units now and it's pretty much selling at the same price as back in 2008 when they proposed .
God bless my friends and family that stopped me buying otherwise I would not be able to be in the situation where I am now
Be very careful as they love to use massive depreciation table and rental guarantee to bait newbies into believing they are making the best decision ever in their life when you look at what they present to you, you almost can't believe how good it was and it's such a shame not to take the offer..........that is the time when you need a second thought.......
However, I could be wrong
Exactly the same if as buying an established property. What would you prefer, two years of holding costs and no CG (ie established property with no growth) or no holding costs and no CG (ie OTP purchase with no growth)?
What makes a 'better' property? Why is OTP inferior?
Why? Units have out performed house and land in many parts of Brisbane for the last few years.
Can some investors state whether it is a fact or opinion they are recommending? Where have they bought OTP, when for how much and what growth and experience they had through the process? I would be interested to know that........thanks.Most importantly, Mirvac won't provide you with rental guarantee so that should please all these somersofters (only a little hehe).
I think OTP properties can be a good strategy with potentially excellent additional tax benefits, but you have to pick the good from the ugly.
IMHO, great to live in but a very poor investment. I am wondering what the strata costs will be for maintaining all those amenities? I hope your ROI stacks up! Best of luck.....Hello,
Looks like an update I made earlier did not post. I did decide eventually to go ahead with the OTP in Newstead.
The building is going ahead of schedule which is good. Some large companies have also begun to move their HQ to Newstead which hopefully means good rental candidates.
This time next year, I guess i'll know if it was worth it.
This is the building I bought in: http://www.news.com.au/finance/real...ched-in-newstead/story-fndbalka-1227193560891