The Village at Wellard - Off the Plan apartment

What do people think of this as an investment?

Lambeth Circle, The village at Wellard - Invita Apartments

Located within the village, short walk to train station.

Village at Wellard - Off the Plan apartments

Wellard Square - New Woolies opens end of 2014

I think Perth's values are still moving so I dont think it would be risky. What do you think? I wonder what kind of rent I could get for a 1 or 2 bed apartment. I dont want anythng too NG.

95% of Stage 1 apparantly sold within a few weeks. Stage 2 is selling now. Is that a good thing? Will that push values up? I wonder how many apartments will be owner occupied and how many will be rentals. I have a bunch of other questions but i'll leave them for later.


Any help or tips would be appreciated as I know there is risk in OTP. I'm thinking buying an otp apartment or a brand new house in Wellard or Mandurah North. IP need to be as close to neutral as I can get it.
 
APK,

- make sure you can get financing for the floor space. The contract will be binding and unconditional - no pulling out whatever reason you give.
- what are the inclusions - blinds etc can cost a lot fo money
- get the estimated outgoings - and double it (there'll always be something extra)
- how does the "secure car bay" work? Looks like one double garage door for 2 units?
- sales figures could be a lie..... or skewed. If it's selling very well, it can be bad news for you, as it is always easier to negotiate the price down if they are not selling.
- Don't pay the asking price



The Y-man
 
Thanks y-man, there sure is a lot to consider isnt there!

I would have to have a list of questions written up if i go talk to the salespeople.
 
Some risks to buying Off the plan

Risks to buying off the plan:


Falling property market ? There is a risk that you may pay too much for a property if the market falls between the exchange of contracts and building completion. If this does occur you may find it difficult to secure finance for the full amount.

worse came to the worse I would have the option of selling my Dianella unit to cover the shortfall. But I dont think the Perth market will fall in the next couple of years. It will either keep going up or go up for a bit more then level off and stay the same. Anyhow I have an escape plan in selling my other unit in very worst case scenario.


Rising Interest rates ? Interest rates could increase before you settle on the property which is problematic if you wanted to fix the term of the loan at the current interest rate.

I didnt think about this. I had always planned to fix my next ip. IR may go up in 1-2 years time. So I'd have to take that into consideration
 
lol, i have now gone off the idea of otp, too much risk and sounds like too much trouble and hassle. I'm gonna go with what i know but i'll put in a bunch of low ball offers so I can try to make the ip not too ng.

inner city (within 8 km of cbd)
low ball offers of no more than $220 k to rent for $300 per week which is a pretty reasonable rate of return
 
Haha
you really need a MB to tell you how much you can borrow so that you can stick to looking at fewer things than you are.
 
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