West End Bris unit

[Portse]

Hi All
Havent posted for a while last time i did i had bought in westend a 2 B/room unit of the plan at river point, completion date is November 09. I am starting to wonder if this is still a good investment with all that is going on, i have also purchased a block of 4 2 B/room units in Kuranda which i am 100% happy with. Any comments from Bris locals or anyone who has bought one of these units would be welcome right now as i am thinking of onselling, although dont seriously think this is an option as would not be surprised if value has dropped.
Purchase price is 510k. also stage two looks like been on the backburner for a while, and as our unit faces it and is reliant on the aesthetics stage two would give, feel this is another reason for concern, we were to face park and pool between bulidings. will eventually but may have to settle for reduced rent in the meantime. Any comments welcome.

 

[vbplease]

Hi Portse,
Looks like there are a few variables in there to think about...
Sorry I'm not too up to speed with the luxury units in west end, Willair may know?
I do know West End will continue to be a very desirable place to live being on the river, with new offices popping up, nice (but not pretencious) bars/restaurants, and there will be a new rapid bus network starting next year. It will link Newstead, Valley, City, Southbank, to West End.. going past your apartment block

 

[Portse]

Thanks VB
Did not know about bus route, there is supposed to be a city cat port to be built in close proximity, am quite excited about ABC building in Southbank with i think 200+ employees. Also interest rates does make it easier to take a see what happens approach, when contract was signed we were expecting to be heading to the 10% mark, current loan for Kuranda is 4.89% a huge difference in dollar terms as everyone is well aware.
Portse

 

[Nucha]

Hi Portse

I know Riverpoint well and I think it's going to be a very nicely finished development. They are rather small and some have poor layouts but the quality is good. Hope yours is one of the better ones.

Unfortunately, I agree with you that the values have probably dropped, however, only in the short term so if you can hold on I don't think you will regret it. West End is changing dramatically and that location opposite the park and Toowong is absolutely beautiful.

I do not think you will see any growth for a while but eventually it will pick up because any new development in West End will cost that much more to build. By comparison existing apartments will then appear to be value for money and you will see some growth. If you want some reassurance have a look at the price list and /m2 rate of Pradella's Water's Edge a few doors down.

Developers are struggling to get finance for their developments so probably stage 2 will not happen until the banks start lending again. In any case, the developer would certainly not want to bring on stage 2 in this current market. Buyers for off-plan developments are rare in Brisbane at the moment.

As far as renting goes, I really don't know but I do know that you bought in the better position. Facing the pool of stage 1 is west, very hot in Summer. You made the right choice in selecting an east facing unit.

Best of luck.

 

[Portse]

Thanks for comments Nucha,
Yes it will be a buy and see what happens approach, lay out not bad, i am a bit concerned that it is only a 1 bathroom unit but that would be my only concern building wise.
Is Pradella price list on website or do you need to contact agent, i have been on website and could not find price list.
Portse