OTP Townhouse in Everton Park QLD

Hi guys,

I'm a first home buyer on the lookout for my first PPOR and have been lurking on these forums for a month now. Lots learnt, lots still to learn.

I have been in a dilemma for over 3 months now and have been trying to answer these questions in my head for a while, but just can't get an answer to them. It will be very helpful if you experienced chaps could guide me somewhere.

I have seen a lot of threads and posts with people recommending against buying OTP properties. I have been looking at this townhouse development with a 3/2.5/2 config priced at $500k.

  1. What do you think of Everton Park as a suburb? I have been there a few times and I really like the feel of it. Nice city views from quite a few points, <8kms from the city. Buses can be a pain in the morning peak hour but the nearest train station is Mitchelton which is 1.3km from these townhouses.

    Do you think this suburb has good potential to grow? To be honest, I really like the suburb and think it could be a great one in years to come.

  2. What do you think of the $500k price tag for this townhouse? The internal area is 174 sqm (+ 88 external) with a double garage and all nice inclusions (ducted aircon, stone bench tops, Bosch appliances etc). I have seen established townhouses with similar config (but single garage) going for between $440-470k with $500k only for 4 bedroom townhouses. They are supposed to complete by early next year.

    I understand there is a premium for new properties and I prefer newer properties. Since I will be getting 15k grant, I am happy to pay a premium of around 20-25k for a new property. Do you think I am making sense or am I completely stupid?

  3. Do you think it is stupid to buy a townhouse for $500k? Do you think buying a house for this much is a much better idea? This townhouse has a BC of $3100. I hate BC fees but I am also a bit scared of handling an entire house with its maintenance issues. A townhouse is going to be much simpler for me to handle. Keep in mind, the houses I have looked at below $500k are mainly old ones and I'd rather get a newer property than an old.

Any help will be much appreciated.

Thanks!
 
Hello
I think Everton Park is a great suburb to invest in and to live in.

I cant say which complex you are referring to, there are a few being built ATM and they are very nice. My Mum's older TH would be worth $400k for comparison - 3/1/1+1 and with very low BC fees.

When she bought hers at the end of 2011, the brand new THs were asking a bit over $500k and have since dropped in price to mid $400s. It's your money.

EP is a lovely area, currently being gentrified with many sought after features. As you say, the train stations are very close and easy to access. The ones closer to Enoggera would be easy enough to walk to Enoggera Station.
 
Hi guys,

I'm a first home buyer on the lookout for my first PPOR and have been lurking on these forums for a month now. Lots learnt, lots still to learn.

I have been in a dilemma for over 3 months now and have been trying to answer these questions in my head for a while, but just can't get an answer to them. It will be very helpful if you experienced chaps could guide me somewhere.

I have seen a lot of threads and posts with people recommending against buying OTP properties. I have been looking at this townhouse development with a 3/2.5/2 config priced at $500k.

  1. What do you think of Everton Park as a suburb? I have been there a few times and I really like the feel of it. Nice city views from quite a few points, <8kms from the city. Buses can be a pain in the morning peak hour but the nearest train station is Mitchelton which is 1.3km from these townhouses.

    Do you think this suburb has good potential to grow? To be honest, I really like the suburb and think it could be a great one in years to come.

  2. What do you think of the $500k price tag for this townhouse? The internal area is 174 sqm (+ 88 external) with a double garage and all nice inclusions (ducted aircon, stone bench tops, Bosch appliances etc). I have seen established townhouses with similar config (but single garage) going for between $440-470k with $500k only for 4 bedroom townhouses. They are supposed to complete by early next year.

    I understand there is a premium for new properties and I prefer newer properties. Since I will be getting 15k grant, I am happy to pay a premium of around 20-25k for a new property. Do you think I am making sense or am I completely stupid?

  3. Do you think it is stupid to buy a townhouse for $500k? Do you think buying a house for this much is a much better idea? This townhouse has a BC of $3100. I hate BC fees but I am also a bit scared of handling an entire house with its maintenance issues. A townhouse is going to be much simpler for me to handle. Keep in mind, the houses I have looked at below $500k are mainly old ones and I'd rather get a newer property than an old.

Any help will be much appreciated.

Thanks!

Yeah from what you have described it sounds fair and reasonable.

Everton park should do well as a suburb. OTP can work for those that really want no maintenance/reno at all. decent size for a TH. The BC fees are up there though.

If you do go ahead with it, need to hold it as long as you can as the area/neighbourhood will develop/gentrify with time which adds organic growth. Suburbs like everton park and their equivalents south of the river will do well with time.
 
You can still buy a 3br house on 550-600m in Everton Park at the moment for that amount of money just. It would may need a little refreshing but would still be in reasonable condition, thats what I would be looking for, it may cost slightly more to hold but there is more potential upside IMO
 
I agree with Hugh about a house. However this suburb will always have plenty of residents wanting modern stylish townhouses too, so you will do well whichever way you go.
 
The BC is very high for a townhouse complex. I would have thought about half that was fair. I must admit I am a house person, and agree you can buy a house and improve it for similar $$ with no BC. as it is to live in, buy what you are happy with, as it's not as much about the numbers.
 
is this gonna be your place of residence or you just gonna live there for 6 months to get your grant and then move out?
 
I understand there is a premium for new properties and I prefer newer properties. Since I will be getting 15k grant, I am happy to pay a premium of around 20-25k for a new property. Do you think I am making sense or am I completely stupid?

To answer your question, just simply do a comparison search:

For example if you are looking at 3 bedroom townhouses:

Look at the cheapest 3 bed townhouses in the suburb, and compare the price with what you are paying for, use your own sense to justify if this this brand new 3 bed townhouse worth the extra $$$ compare to an older 3 bed townhouses.

From my own observations, developers usually inflate their price on an average of $100k compare to existing properties and usually the newer the developments, the smaller the size you get.

My girlfriend had the same mentality with a lot of FHO where they don't want to "waste" their FHOG, luckily I've talked her out of it and we bought an existing house which are due to enjoy the booming market :cool: in fact, while we are waiting for settlement our property has already increased more than 10% from our purchase price :p
 
As it is for a ppor I think the answer is what kind of property would you like to live in, but I would try and look for comparables to make sure it is good value. The suburb is dominated by older post war houses some of which have been renovated, it hasn't increased in price much over the last few years as there are still a few places available with a decent land component for under 500k. It's only 8km from the CBD and is probably an under valued area.
Gaining the FHB grant is a benefit provided the townhouse represents reasonable value and as you said you would prefer not to have to deal with any maintenance issues, it comes down to personal preference for a ppor.
 
but also be mindful that brand new OTP can just have as much issues as old ones, sometimes more....... and remember the law just recently changed that to claim warranty on developers you can only do it within the first 3 years or 2? can't remember...
 
I understand there is a premium for new properties and I prefer newer properties. Since I will be getting 15k grant, I am happy to pay a premium of around 20-25k for a new property. Do you think I am making sense or am I completely stupid?
To answer your question, just simply do a comparison search:

For example if you are looking at 3 bedroom townhouses:

Look at the cheapest 3 bed townhouses in the suburb, and compare the price with what you are paying for, use your own sense to justify if this this brand new 3 bed townhouse worth the extra $$$ compare to an older 3 bed townhouses.

From my own observations, developers usually inflate their price on an average of $100k compare to existing properties and usually the newer the developments, the smaller the size you get.

My girlfriend had the same mentality with a lot of FHO where they don't want to "waste" their FHOG, luckily I've talked her out of it and we bought an existing house which are due to enjoy the booming market :cool: in fact, while we are waiting for settlement our property has already increased more than 10% from our purchase price :p

Why not get the FHO grant as well as no stamp duty, which gives you an immediate 30-40k in equity and then rent out the rooms to your mates or live in one room and rent the others and then after 6 months rent somewhere else or pair up with a mate and say you're renting each others properties....bit dodgy but yeah..there are a few options there.. All depends on what you like.. If you're like me and a new house is on offer for the same or cheaper price than an old one just because the old one has bigger land, i'd go for the new one for investment purposes due to depreciation and usually higher rent... All up to you and what you wanna do.

I'm looking at investing interstate first then using my FHOG in Sydney..
 
You should do the other way around, if you bought investment first you'll lost your FHOG and the free stamp duty, all you get is 5k.

And don't get me wrong I do like brand new properties and I've always come very close signing up a contract but it just never happens lol
 
You should do the other way around, if you bought investment first you'll lost your FHOG and the free stamp duty, all you get is 5k.

And don't get me wrong I do like brand new properties and I've always come very close signing up a contract but it just never happens lol

I called office of state revenue. If i invest interstate i get my FHOG where i am but lose stamp duty exemption which is ok cos if i get a property in sydney it'll be land and you get 5k off land anyway..
 
Thanks guys for the replies.

I will probably stay in this property for at least 5-6 years before moving to a house. And this townhouse will be put onto the rental market. I won't be selling it to be honest for a while.

The townhouses currently in market in Everton Park fall anywhere between 400-480k.
These are some of the sold ones -

3/2/1 - $437.5k

3/2/1 - $477.5k

4/2/2 - $500k

And these are some of the currently selling ones at listed price -

3/2/1 - $440k

3/2/2 - $489k

Do you guys think the price of $500k for an OTP is unreasonable compared to these above ones?

Everton park should do well as a suburb. OTP can work for those that really want no maintenance/reno at all. decent size for a TH. The BC fees are up there though.

That is true. Looking at the BC details they have added the maintenance of lifts as one of the costs as well. Now this complex has a mixture of townhouses and apartments. I think charging the townhouse people for lifts maintenance is unreasonable and this is what I am going to negotiate with them. To clarify, there is no swimming pool or gym in the complex.

You can still buy a 3br house on 550-600m in Everton Park at the moment for that amount of money just. It would may need a little refreshing but would still be in reasonable condition, thats what I would be looking for, it may cost slightly more to hold but there is more potential upside IMO

Thanks. I have been looking at newly renovated houses as well, they just are in the $550k range - slightly above my max limit of $500k. I know $50k is not a lot, but I have stretched my budget for getting to $500k in the first place. Although I agree, you can find some good deals and I will keep looking.

But again, living in a 550 sqm house scares me a bit, especially the older ones. I dread taking care of the faulty hot water system and old plumbing lines.

Why not get the FHO grant as well as no stamp duty, which gives you an immediate 30-40k in equity and then rent out the rooms to your mates or live in one room and rent the others and then after 6 months rent somewhere else or pair up with a mate and say you're renting each others properties....

I am married and don't want to rent out the other rooms to my mates / others. I like the freedom :-D
 
What is the possibility of me being able to negotiate the body corporate fees considering the fact that they have included the lifts maintenance for townhouses as well?
 
What is the possibility of me being able to negotiate the body corporate fees considering the fact that they have included the lifts maintenance for townhouses as well?

Your chances of negotiating a change are probably little more than nil, but there's no reason why the development could not have been structured with multiple BCs so as to apportion the expenses more fairly.

My home (Melb Dockland tower) is part of a larger development which has five OCs, one of which covers the residential tower only and is levied on tower owners only and another deals with external common parts and everyone pays. One is for the office block, another for the Quest serviced apartments. The fifth is a OC for the two penthouses and pays for the maintenance of the little lift from level 41 which is for their use only.
 
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