I am starting out in the property market, and have already had many ups and downs, and very confusing moments, I was currently looking at these ‘Yardmen Village’ apartments in Noble Park, South East Melbourne.
I was wondering if any advice could be given/information on OTP properties? As well as what to look out for! What I’ve looked into so far includes the infrastructure around the area (two main freeways, railway line within 5 min walk, schools & shops etc.)
I was wondering what you guys think?
Also any information about that specific part of noble park would be great too!Yarramen Village Townhouse Development
The townhouse I was looking at was a 3 Bed 2.5 Bath 2 Garage townhouse on a corner block for $510k.
Any help would be great! Thanks in advance!
ChrisHi Chris
I can’t speak for those apartments in particular – but happy to speak about OTP in general.
The concern I have with OTP is that the developer expects you to unconditional on the purchase now – but the bank won’t approve finance for the property until it’s completed.
The risk with this approach is that if your financial and/or employment situation changes – or the property is valued at less than you paid for it, you could be at a risk of not getting finance approved and thereby losing your deposit.
The upside with OTP is that in some states there’s concessions for first home buyers (whether it be the first home buyers grant and/or a concessional rate of stamp duty). Locking in a property at a fixed price that isn’t due to be completed for some time can also be an attractive option for some buyers.
All in all – tread carefully with OTP. Do your research – and be reasonably certain that obtaining finance won’t be an issue for you.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Chris
I do quite a bit in the area and grew up around the corner.
These are a little pricey in my opinion.
No concern with OTP TH in Noble Park (at the right price) and they generally value up given the strong performance of the market with a key focus on first home buyers.
Positive is that skyrail takes away the railway crossing at Chandler rd and hopefully the sound also.
Our developments are all in Noble Park central which for me represent better value and a better location.
Hope that helps
Cheers Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Thanks @redwood for that information. Do you have any of your developments online so i could have a look to compare? What price do you think would be more acceptable ?
Chris Units, apartments, townhouses etc rely on property prices increasing. From my experience (30 years) these types of properties appreciate very slowly compared to houses unless they have something unique ie near the beach, large size rooms, large private open space, etc. But they are generally less effort to manage.
Buying a house with land that could be developed in the future (dual occ or multi-units) will see better returns in the long run.
A good strategy is buy a house that has development potential, claim PPOR for less stamp duty, live in it for 12 months or so, then move out and treat it as an investment property, then look at developing it. By doing this there is the advantage that if you sell within six years there is no CGT on the original house. Other suburbs to consider are Seaford, Noble Park North and North Dandenong.
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