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From: Anonymous
Question for discussion.
I have a chance to buy a unit in an up and coming area (and I realise that this description carries certain connotations).
The chance is through a contact with the developer, and the price being offered represents a discount of some 20% from the 'retail price' of these units. I gather these are pre-sales to get the development over the line and help the developer get finance, hence the discount.
Location looks good, near to transport, link to Sydney CBD etc.
However, the development is in a location where the council has (up until now) not allowed units, and this is the first lot of 'high quality' units which have been approved. So there's little (if anything) to compare the units with, in particular the "retail price" that's being quoted. For example, the developer could set the "retail" to whatever he likes and the gain on paper would look great.
How can you be sure there's value in it, when you're working in a vacuum? Local agents can't really give an idea of what rents or value would be - and I haven't checked with a valuer yet.
I'm keen on taking up the chance if the value is there, but I don't want greed to make me do something I'll later regret.
Any thoughts as to what steps to take?
Question for discussion.
I have a chance to buy a unit in an up and coming area (and I realise that this description carries certain connotations).
The chance is through a contact with the developer, and the price being offered represents a discount of some 20% from the 'retail price' of these units. I gather these are pre-sales to get the development over the line and help the developer get finance, hence the discount.
Location looks good, near to transport, link to Sydney CBD etc.
However, the development is in a location where the council has (up until now) not allowed units, and this is the first lot of 'high quality' units which have been approved. So there's little (if anything) to compare the units with, in particular the "retail price" that's being quoted. For example, the developer could set the "retail" to whatever he likes and the gain on paper would look great.
How can you be sure there's value in it, when you're working in a vacuum? Local agents can't really give an idea of what rents or value would be - and I haven't checked with a valuer yet.
I'm keen on taking up the chance if the value is there, but I don't want greed to make me do something I'll later regret.
Any thoughts as to what steps to take?
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