OTP - Kingswood/Penrith Advice please

Hi All,

A good friend's uncle has placed a deposit on a 2 bedroom apartment off the plan. The project is located in Kingswood/Penrith NSW . The complex is being built on vacant land across from the Nepean Hospital. The advertisement read :
BRAND NEW APARTMENTS
  • Nepean Private & Public Hospital precinct Off the plan, stage one
  • Located on the corner of Great Western Highway & Parker Streets, Kingswood with access via Barber Street
  • Located on levels 4 & 5, this world class development is a first for Penrith area
  • Lower levels are retail & commercial premises
  • Offering 1 & 2 bedroom apartments with all of todays comforts and security
  • This is a fantastic opportunity for investors
  • Starting from $325,000 for 1 bedroom. Over $399000 for 2 bedroom.
  • Expected completion date 30th June 2017
My friend has secured one of the units for $440,000 I believe. After some time to think he is getting itchy feet and is considering bailing on it. He asked me if I would be interested in it. All the units are sold now. Having never done OTP I am a little nervous. I do know the area and if it goes ahead it is in a great location, next to the Private Hospital, across from the Public Hospital, close to Penrith/Kingswood Railway stations, University, M4.....

My concerns are :

  • Possibility of it not happening at all ? I have seen portables and clearing there.
  • Am I paying too much for a 2 bedroom unit.
  • Is this a niche market being surrounded by doctors, medical services, clinics etc ?
Any advice is greatly appreciated. He may not even sell it to me. I think he has only placed his $1000 holding deposit down with real estate at this stage. Am I only giving him that back or is it more complicated than that.

thanks in advance. Sorry for such a long winded one just never had this issue before.
 
BRAND NEW APARTMENTS

My friend has secured one of the units for $440,000 I believe. After some time to think he is getting itchy feet and is considering bailing on it.

Good your friend is looking to cut his losses!

You should do a runner!!!
 
What's the reason your friend getting itchy feet? And then handing it over to you? Or is he just palming them off?
 
Last edited:
1 bedroom unit in Penrith close to peak of the market for over 300 and a 2 Bedder for 400K

NOOOOO !!!

All the Doctors live up in the Blue mountains , on acerage south of Penrith or commute from Strathfield , maybe some in the Hills . I commuted from Concord West .

Lots of the longer term nurses out there live locally and own their own properties.

There maybe money going to penrith , but there's lots of space . Working class area.

It's nicer than Mt Druitt.

The couple of friends of my kids went to Uni out there commuted from inner City . One rented out there for a term and then was " outta there " ...

Cliff
 
Personally, I will not do it.

Unless I know someone willing to pay me for $450,000 or more ( or an agent know someone), I will not touch it, especially OTP and in that area.
 
Hi guys,

According to my friend - his uncle doesn't want to tie himself up for 2 years on this project. He said he was happy with the project, the price and the potential.

I only raised the prospect of taking it off him as the house/land market is crazy in this area with Jordan Springs, Caddens, Waterside and now Mulgoa Rise all over 650K + range. I figured this for about 450K would be a decent investment.

I am not interested in buying anything 20 years old in neighbouring areas for 550K.... maybe I will try and get a townhouse in Mulgoa Rise when they came up next.

Or maybe cut the chase and accept that the Sydney ship has sailed .
 
I am not interested in buying anything 20 years old in neighbouring areas for 550K.... maybe I will try and get a townhouse in Mulgoa Rise when they came up next.

Or maybe cut the chase and accept that the Sydney ship has sailed .

Mulgoa Rise - there is a lot of land from what I understand?

What are you trying to achieve? What's the rent on those townhouses? Why OTP as well? Do they offer capital growth or cashflow? (I potentially see neither on townhouses in that area, but then I don't know Mulgoa) When do they get built? Buying at peak as per see change suggests (caveat: I don't have a crystal ball but I don't like your chances with making much on these)

May be your latter statement might be it.

I'd suggest searching on the forum with "OTP"/"Off the Plan" before burning yourself with OTP.
 
Hi

Looking for something that will be given to my kids in 10 years. Something that has potential to grow , gets reasonable yield and I can lock them into the market NOW rather than trying to get something 10 years down the track.

Mulgoa rise is a nice big estate and well started. About 2-3 Kms further out from Glenmore Park towards Mulgoa. Access from Northern Road. But as I said looking at $700K to get something decent in there.

Maybe OTP is not the right vehicle for us at this time.
 
I won't comment on whether the price is good value, I suggest you look at what existing properties are listing for in that area to get a feel for whether this one is good value.

In relation to whether you should / or can "take this off" your friend, my advice is unless you are prepared to lose the friendship don't go ahead with it. I'm not saying the deal is bad, but if it turns out to be it will be game over for you guys.

If your friend has just paid a holding deposit, as far as I know it is non-binding on both parties - so either can pull out, which should allow you the opportunity to sign a contract for sale.

If your friend has already signed the contract for sale then they may be able to sell it to you depending on what the contract allows. In this situation he can't just bail on the contract unless there is a term in the contract that allows this (probably unlikely). The sceptic in me says your friend is trying to flip the property to make a profit on it, but you could check this by asking to see the original contract he signed.

Personally I would exercise extreme caution.
 
Is there anything left in Thornton? If you're after OTP that would be the best bet being near the station and main roads. From what I hear, the road from Glenmore Park is already bad in peak hour let alone when the rest of the area is developed.
 
That does sound a little expensive for otp but things have gone a but crazy out there. Prd in Penrith do a lot of otp stuff, maybe ask them for advice??

Thornton would be the pick for cbd, otp/new property but it would be more expensive, a lot more its prime location. Parker St and the hospital area the main thing is it's next door to the hospital... No biggie, how many people buy because it's across the road from work, unless you jag nsw health wanting it. That pocket near the hospital sounds good and ticks the box - near hospital. I doubt any of the people nearby work at the hospital, maybe customers that's all
 
Just sold my house in Kingswood so know the area well. Pretty much everything north of Hargrave St up to GWH is now zoned B4 for 6 storey mixed use commercial / residential. Similar story with R4 zoning on the Penrith side of the hospital and a big chunk north of Lethbridge St. Lots of potential future supply on the way, so I would be very wary.
 
Just sold my house in Kingswood so know the area well. Pretty much everything north of Hargrave St up to GWH is now zoned B4 for 6 storey mixed use commercial / residential. Similar story with R4 zoning on the Penrith side of the hospital and a big chunk north of Lethbridge St. Lots of potential future supply on the way, so I would be very wary.

Did you get a good price for it? What zoning was your house?
I have one close to UWS and is considering selling if price is right.
There is very little stock in Kingswood, and median price has jumped 30% in 12months for houses.
 
Did you get a good price for it? What zoning was your house?
I have one close to UWS and is considering selling if price is right.
There is very little stock in Kingswood, and median price has jumped 30% in 12months for houses.

I got $860k for my 600sqm B4 block. Can't say no to that! My buy and never sell mantra just went out the window :D
 
Yeah, my friend also suggest to buy the House& land package in Penrtih area since he got two and last month he just got around $200k increase in equity since he bought it 2013

so it must be a good buy to get some house as IP in Penrith area.
 
Is there anything left in Thornton? If you're after OTP that would be the best bet being near the station and main roads. From what I hear, the road from Glenmore Park is already bad in peak hour let alone when the rest of the area is developed.

Stage 1 of St Hilliers project @ Thornton was sold in October. 80% sold out on day 1. Stages 2 and 3 will come to market this year. 2 bedders will be starting at well above 460K. As for other Thornton 2 bedders that might be a better 10 year play .... see signature below.... cough cough
 
Back
Top