Top Ryde City Apartments OTP

Would like some advice on this as I'm new to the property game.
I've been looking at some investment properties OTP and have come across a new development at Top Ryde.

Stage 1 consists of a new retail shopping complex with 100+ shops.
Stage 2 consists of 2-3 residential towers and another 100 odd shops
Stage 3 consists of commercial complex, final 2 residential towers and another 100 odd shops.

Stage 1 is due for completion end of 2010. First set of apartments due for completion early 2012. Asking price for a two bedroom is around $550K to $900K.

It is what called a multi-use development. In that it has retail, residential and commercial in the one complex. The residential is built on top of the retail building. In total, there'll be around 450 apartments when finished.

Do you think this is a good investment? The price appears reasonable to me especially since it won't settle till 2012.
Having read the forums though, the general opinion is against OTP properties with limited capital growth being the main issue. The other issue is that being a multi-stage development, growth may not appear until the final stage is completed as apartments will keep coming on until then.
Am I better waiting for the last couple buildings? But then the pricing might increase to balance this aspect out?

Or should I forget about OTP as there are better places to put my money?

Plenty of things to consider and it is a lot of money....
Any advice would be appreciated.
 
Your biggest risk with buying OTP for a property that won't be finished for such a long time is;

- Your situation changes (unemployment) and you are tied in to settle (see if you can get a contract which allows you to onsell the property

- The financial markets change - lending may tighten up (although I imagine by 2012 things should be a little looser then what they are now)

- The property market changes - the property which you bought for X, is now 50-100k less than what it's worth, perhaps due to the timing of the market, or perhaps due to better development in neighbouring properties.


The good things I like about the area


Top Ryde is in an awesome location. Close to train stations, ferrys, shopping centres, main arterial roads, what was once a considered the dreggiest suburb of the area, is being gentrified at a hastening rate.

Think about what is around you, Gladesville, Hunters Hill, Putney, North Ryde, Rhodes, Concord, West Ryde, Even Meadowbank (I never would have thought id say Meadowbank is a good area)

So if your confident in your position, you have good cash behing you, a secure job, and you are buying at a reasonable price, you could do well.

It's not that uncommon to make good money off OTP, but there are high risks involved.

Good Luck.
 
......a new development at Top Ryde.

Stage 1 consists of a new retail shopping complex with 100+ shops.
Stage 2 consists of 2-3 residential towers and another 100 odd shops
Stage 3 consists of commercial complex, final 2 residential towers and another 100 odd shops.

Stage 1 is due for completion end of 2010.

Stage 1 was due for completeion Oct 2009, then Nov 2009, now your looking at 2 majors open by the end of 2009 and the rest Feb/March 2009.
Its pretty much fresh food plus some mini majors.

Stage 2 (retail shop at least) is due for completion April 2010, but as stage 1 is ebing oushed back you can bet you back side stage 2 will be.
Stage 3, the final stage of the retail development is due Nov 2010 bu that will change also.
 
Thanks for the reply everyone.
I've looked at a few new developments in my search the past couple months and the price is certainly comparable. You can get nothing these days (new'ish) for less than $500K for a two bedroom of liveable size so I think I'll go ahead.

Just a question on the delay that is mentioned a fair bit. Since it's an investment, why is a delay an issue? I would've thought the later the better as it delays my settlement whilst the price doesn't change?
 
Just a question on the delay that is mentioned a fair bit. Since it's an investment, why is a delay an issue? I would've thought the later the better as it delays my settlement whilst the price doesn't change?

Could lock up your deposit for years....


Cheers,

The Y-man
 
HK B,

Out of curiosity, have you been to the display suite yet? Have you found some good apartments offered from the development?

C
 
this may happen

This is an advert for stage 3 in Meadowbank. If you do a search on RE.com there are people trying to sell there's from stage 1 & 2 for more than this. As long as you don't want to sell it for 5 years as you may have difficulty with new ones coming out later. I have seen huge discounts when a developer has say a dozen left. Buyers agents love these.


Bay One first stage, now all been occupied.
Second stage, within the first 5 months all sold, Currently estimating will be settled and ready to move in around mid 2009.
Third Stage, Now released for sale…….
1. Full brick construction (Exterior Wall double brick, internal wall single brick), high Ceiling, ducted airconditioning, dishwasher, dryer, quality finishes and much more…………..
2. A variety of luxuries apartments to suit different peoples need:
• Bachelor/ Bachelorette or couples – 1 Bedroom
• Small/Young Famlies – 2 bedroom or 2 bedroom + Study
• Retired/elderly people - Spacious apartment + Great outdoor area
• Investors: Due-key Apartments (1 title 2 apartments, Great Value, Opportunity for good rental returns)
3. Starting this year, Incredible price reduction:
• 1 Bedroom Old Price: $400,000 Promotion Price: From $350,000
• 1 Bedroom + Study: Old Price: $445,000 Promotion Price: From $395,000
• 2 Bedroom: Old Price: $500,000 Promotion Price: From $450,000
• 2 Bedroom + Study: Old Price: $545,000 Promotion Price From 495,000
• 3 Bedroom : Old Price: $630,000 Promotion Price: From $580,000
• Due-Key (1 title 2 Apartments): Old Price: $670,000 Promotion Price: From $620,000
 
Hi all, looking at purchasing my first property. Have read alot about OTP properties and still have my reservations.

Any further comments about the top ryde developments? Decent 2 bdrm apartments with views are looking at the 630k mark (around 120sqm).

One main concern would be the success of the top ryde shopping centre itself (there are quite a few other surrounding major centers such as maquarie + rhodes).

Any guidance or advice would be greatly appreciated!
 
I think the shopping centre will do fine, and its a very central location.
But for your first purchase I wouldn't be spending so much money, or buying off the plan. Have a look at the surrounding streets... there are plenty of older units for sale, which will also benefit once the shopping centre is fully open, at a much more manageable price,
cheers
Pen
 
Hi all, looking at purchasing my first property. Have read alot about OTP properties and still have my reservations.
There are lots of risks with OTP - just do a search anywhere in the forums here.

Any further comments about the top ryde developments? Decent 2 bdrm apartments with views are looking at the 630k mark (around 120sqm).

Just down the road in West Ryde you can buy similar sized units (admittedly older) but closer to the railway station for transport and for more than $100K less :eek:. THAT would be more of a concern to me than the success of the shopping centre.

John Edwards fropm Residex said here: http://www.residex.com.au/newsletter/source2010_04aMC.html?content=commentary&from=news0410a

Sydney units which are well-positioned (close to transport hubs) and more than a decade old look to me as if they are going to see the best growth. Having said this, avoid suburbs where there are significant volumes of new development taking place
and I happen to agree.
 
Agree with Alan here, though there can certainly be opportunities with developers offloading stock to pay their lenders :D

I'm not a fan of OTP- too many variables and you may end up accruing negative equity during the pre-settlement period if it all goes belly up and the market softens. If you prefer to buy new and can't buy in cheaply at the pre-sales or end of stock period then consider sales of units that have already been lived in, as has been suggested. Unless you qualify for the half price SD saving (cut off end June 2010) it may not be worth it. Also consider that the savings you make may well be negated by the inflated price you may pay anyway.

As far as depreciation savings are concerned, and you like renovating :) consider an older unit and get your hands dirty. Faster way to build instant equity as well.

Top Ryde and surrounds are a great area, I believe. I particularly like Gladesville, West Ryde and Meadowbank (for value) and Denistone.
Happy hunting.
 
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