l am looking at an OTP purchase in Erskineville, Sydney at the moment that l would really like to discuss with anyone who has some insight into the Sydney Inner West property market and thoughts on OTP in general.
Details of the deal;
- Two bedroom, two bathroom apartment set on two levels with small study/media area, 3 balconies, main living and balcony facing due North. Possible views. Underground security car park space on title. Apartment 86sqm + balconies 18sqm. Price $498k
- Over 2500sqm of private gardens, BBQ area, swimming pool etc.
- Good potential for future CG as Erskineville is undergoing an 'urban renewal' program
- Architecturally designed by Allen Jack + Cottier
- 150 apartments, predominately one bedders in two buildings
- high quality development by ASX listed company.
- Built on 5 levels with undeground residents carpark and ground level vistors parking.
- project not to commence until 3rd quarter this year, with an expected completion date of 3rd Quarter 2005. Not publicly marketed yet, still waiting on council approval.
- Close proximity to King Street, Sydney park, Train station, Sydney airport, 5km to CBD etc
l am still in two minds on this deal. The price is good l believe as it is comparable or better than what's for sale presently in the area and significantly cheaper (by over $100k) to the only other comparable development in the area which is near completion. Rent on today's market is around $420pw, a gross return of 4.2% which is right on the average for the area. BC fees and rates are inline for the development and area in general. With depreciation and a 6.4% interest rate my calcs show a holding cost of less than $100pm and would balance out nicely with some CF+ properties we hold and others we are looking to buy. It would be a long term buy and hold proposition.
We have done several OTP's in the past that have proved excellent deals with great CG, l like this one but l keep reading about oversupply etc which puts some doubt in my mind. Sydney's population is growing at 50000+ per year so there is a constant demand for new accommodation. l don't think this is a real concern in areas such as Erskineville but l would like to hear fellow forumites opinions and thoughts on this.
l am thick skinned so please let me hear it!!!
Cheers Mondie
Details of the deal;
- Two bedroom, two bathroom apartment set on two levels with small study/media area, 3 balconies, main living and balcony facing due North. Possible views. Underground security car park space on title. Apartment 86sqm + balconies 18sqm. Price $498k
- Over 2500sqm of private gardens, BBQ area, swimming pool etc.
- Good potential for future CG as Erskineville is undergoing an 'urban renewal' program
- Architecturally designed by Allen Jack + Cottier
- 150 apartments, predominately one bedders in two buildings
- high quality development by ASX listed company.
- Built on 5 levels with undeground residents carpark and ground level vistors parking.
- project not to commence until 3rd quarter this year, with an expected completion date of 3rd Quarter 2005. Not publicly marketed yet, still waiting on council approval.
- Close proximity to King Street, Sydney park, Train station, Sydney airport, 5km to CBD etc
l am still in two minds on this deal. The price is good l believe as it is comparable or better than what's for sale presently in the area and significantly cheaper (by over $100k) to the only other comparable development in the area which is near completion. Rent on today's market is around $420pw, a gross return of 4.2% which is right on the average for the area. BC fees and rates are inline for the development and area in general. With depreciation and a 6.4% interest rate my calcs show a holding cost of less than $100pm and would balance out nicely with some CF+ properties we hold and others we are looking to buy. It would be a long term buy and hold proposition.
We have done several OTP's in the past that have proved excellent deals with great CG, l like this one but l keep reading about oversupply etc which puts some doubt in my mind. Sydney's population is growing at 50000+ per year so there is a constant demand for new accommodation. l don't think this is a real concern in areas such as Erskineville but l would like to hear fellow forumites opinions and thoughts on this.
l am thick skinned so please let me hear it!!!
Cheers Mondie