I have been thinking to buy an IP here and currently been living here for 6 months. Australand has like a ton of apartments set to be gradually released over the next 3-5 years however their strata levies look to average about $1200/qtr which doesn't make it as appealing for an IP. There are some other developments coming up which have less facilities with levies of about $500-$600/qtr. But with so many blocks coming up will prices rise in the medium term with good capital gains? Anyone who is an expert can comment? My other options were either Kogarah or Hurstville. Hurstville seems to be on the high mark now and I'm not sure if Kogarah is gonna develop further than what it already is.
Wolli Creek 2205
- Thread starter jskf01
- Start date
John Edwards from Residex said many years ago: “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”.
Stay away from Off The Plan & new - for which you pay a premium, & which can take a number of years of CG to get back.
Consider Arncliffe too.
Stay away from Off The Plan & new - for which you pay a premium, & which can take a number of years of CG to get back.
Consider Arncliffe too.
....and expect the strata levies to increase from $1,200 in a short amount of time.
Even if that was true, wouldn't it be better to buy the existing properties so that you can enjoy the rise in price?
I was thinking along the lines of...say I outlay a deposit for an OTP unit, and I dont need to pay anything else until its ready in say 1-2 years and by that time prices would have risen and I would have gained some significant equity before its even rented out. First time investor here so your advise is appreciated. Is it advisable to buy IPs with high strata or low strata? Cos 1200 is pretty ridiculous I think
A lot of more experienced investors have posted about the pitfalls of buying OTP which I am sure you could search for in the forums for more details but to summarise:
1. Because you pay a premium for the OTP it is unlikely that it will go up significantly by the time it's completed (maybe in the past but in this climate possibly not)
2. If it goes down in value you'll have trouble with financing
3. the high strata levies will only continue to go up and this will eat into profits. Also the maintenance/repair on things like lifts is VERY expensive.
4. In 10years time it's no longer going to be brand new so will be compared to other places in the area which were established....
5. In big blocks like they are building in Wolli Creek lots of competition when it comes to renting your unit and/or selling it as it is likely there are going to be multiples on the market at any given time.
I'm sure there are ones i've missed but at least this is some food for thought.
1. Because you pay a premium for the OTP it is unlikely that it will go up significantly by the time it's completed (maybe in the past but in this climate possibly not)
2. If it goes down in value you'll have trouble with financing
3. the high strata levies will only continue to go up and this will eat into profits. Also the maintenance/repair on things like lifts is VERY expensive.
4. In 10years time it's no longer going to be brand new so will be compared to other places in the area which were established....
5. In big blocks like they are building in Wolli Creek lots of competition when it comes to renting your unit and/or selling it as it is likely there are going to be multiples on the market at any given time.
I'm sure there are ones i've missed but at least this is some food for thought.
thanks for that jkat. I know prices in the area are plateauing abit at this stage so was just thinking whether to buy OTP or established. I might start looking into established units as well. Any thoughts on if this area and its surroundings would grow and develop thus increasing equity?
I don't think wolli creek would be a good area for investment (or for PPOR)
I think Australand is asking $700-$800 K for 2bed 2 Bath apartment + hefty starta fees. i rather buy semi acorss the river for that money.
I think they are projecting around 2000 apartment being built in next 5 years. i was quizzing local real estate agent,how investors can make money and he had no real answers.
Most of the apartments are sold by australand are bought by Asian investors. i have seen them coming in a bus, a real estate lady takes them to few apartments then to new Wollies and way it goes.
wolli creek has massive trouble of traffic(bottle neck and ongoing developments) and not have one singe pedestrian crossing. lot of apartments even doesn't have proper solar and day light access.
Just my 2c worth, been renting here for last 8 years!
I think Australand is asking $700-$800 K for 2bed 2 Bath apartment + hefty starta fees. i rather buy semi acorss the river for that money.
I think they are projecting around 2000 apartment being built in next 5 years. i was quizzing local real estate agent,how investors can make money and he had no real answers.
Most of the apartments are sold by australand are bought by Asian investors. i have seen them coming in a bus, a real estate lady takes them to few apartments then to new Wollies and way it goes.
wolli creek has massive trouble of traffic(bottle neck and ongoing developments) and not have one singe pedestrian crossing. lot of apartments even doesn't have proper solar and day light access.
Just my 2c worth, been renting here for last 8 years!
You wrote this in your opening post:
Sometimes you find that when new stock appears in an area, the existing stock goes down in value.
It's an odd area, Wolli Creek. I don't quiet get it. There are people moving into my Airbnb place on the weekend for 2 months and they have been staying in Wolli Creek for 5 weeks. They hate it, but they are from India and used to a street scene a bit more lively. If I was going to live in an area full of apartments, I would like more life on the street. maybe that will come, though it has been promised for a long time.
What keeps you there, mflying?
Sometimes you find that when new stock appears in an area, the existing stock goes down in value.
It's an odd area, Wolli Creek. I don't quiet get it. There are people moving into my Airbnb place on the weekend for 2 months and they have been staying in Wolli Creek for 5 weeks. They hate it, but they are from India and used to a street scene a bit more lively. If I was going to live in an area full of apartments, I would like more life on the street. maybe that will come, though it has been promised for a long time.
What keeps you there, mflying?
Arncliffe, Banksia, Rockdale
I've lived in Arncliffe and Banksia (bit further away than Wolli Creek) in the past and have liked it. It has good trains and is a quick trip into the city, easy access to amenities and for a young couple no kids it was great access to other entertainment places like Fox Studios, Beaches etc at a lower cost.
Having said that -- I did work at the Mercure Airport Hotel at one point and had to cut through the park at Wolli Creek which always made me feel really unsafe at night. That suburb never appealed to me personally.
Overall from an investing point of view I don't know if I would invest in that area because at this stage all my knowledge is from when I lived there and what I was looking for in a place to live rather than using my investing criteria.
I've lived in Arncliffe and Banksia (bit further away than Wolli Creek) in the past and have liked it. It has good trains and is a quick trip into the city, easy access to amenities and for a young couple no kids it was great access to other entertainment places like Fox Studios, Beaches etc at a lower cost.
Having said that -- I did work at the Mercure Airport Hotel at one point and had to cut through the park at Wolli Creek which always made me feel really unsafe at night. That suburb never appealed to me personally.
Overall from an investing point of view I don't know if I would invest in that area because at this stage all my knowledge is from when I lived there and what I was looking for in a place to live rather than using my investing criteria.
I'm not sure what they will be able to do about the traffic. Getting out onto the Princes Highway must be tough at times.
I prefer Banksia and Arncliffe.
I prefer Banksia and Arncliffe.
i've bought a property in wolli creek 2 years ago for 460k. i had some good advices from this forum too like "regentrification" of the area, etc.
i recently had a valuation of my property and they said its about 480k now. i guess it's not that bad but once all these developments are finished, i am definitely sure there will be an over supply.
my friend who has an IP in rhodes is still struggling to sell his property. i have a feeling the same will happen with wolli creek.
i recently had a valuation of my property and they said its about 480k now. i guess it's not that bad but once all these developments are finished, i am definitely sure there will be an over supply.
my friend who has an IP in rhodes is still struggling to sell his property. i have a feeling the same will happen with wolli creek.
