Best Time to Purchase Property

crazyboy on 06/06/2023 - 20:03

We are a family of 3, myself, wife and our 2 year old. We are looking to purchase a unit in the Sydney's upper north shore or nearby areas. Budget is $700k to $800k. I am looking at 2 bedroom or 2 bedroom plus study. I have loan pre approval ready. Is it a good time to buy a unit? I am a first home buyer. Any specific suburbs you can recommend?

I have started looking at properties and I can see a difference is prices up to $50k - $100k for similar properties. Do you guys recommend brand new builds, builds in last 5 years or older builds? How do I ensure the build quality of the units? Any reputed builders to look out for who have developed these properties? Strata is mostly $1k per quarter for standard units and for higher floors its approx $2k per quarter.

Any other tips on buying would be appreciated?

Financial

Comments

  • MrThing on 06/06/2023 - 20:10
    +54

    the general consensus is to avoid anything built new in the past 10years

    • Gunnar on 06/06/2023 - 20:25
      +44

      I’d go to 20 years

      OP do a strata report. It’s not fool proof but you can see what the financials of the strata are like, what recent raises have happened to build the sinking fund, capital works, etc. it won’t tell you what the problems are but you can use it as a guide.

      With Strata costs, They really eat into your budget

      Will this be your forever home? If so just remember that space is likely to be an issue, esp if you are planning on having more kids. A unit will be fine for a few years but you may find it difficult depending on your and your children’s lifestyles.

      • drprox on 07/06/2023 - 18:27

        Actually yeah I agree with this more!

    • boomramada on 06/06/2023 - 20:26
      +2

      Do you want to trade my 40yo property for 5yo property? ;)

      • mskeggs on 06/06/2023 - 22:34
        +32

        I know you are making a joke, but I would 100% buy 40yro over new if the financials were the same.
        A 4 or 6 unit walk up block from the 1970s and 80s are typically solidly built with higher ceilings, better ventilation, room size and windows.
        Also avoid strata fees for lifts, pools etc.

        Better places to live if you own and better investments, imo.

        • ForkSnorter on 07/06/2023 - 07:36
          +1

          with higher ceilings,

          I disagree entirely. Most apartment buildings up until the 1980s have 8 foot ceilings. Most modern high rise apartments have 8.5 to 9 foot ceilings (except where the ducted air conditioning is located).

          room size

          Room size, probably you're right, although it does depend on the building, and modern apartments make better use of space. High-rise apartments can get more sun and better views, which makes them feel more spacious.

          windows

          You're wrong about windows, except maybe dodgy tiny apartments in Melbourne.

          A 4 or 6 unit walk up block from the 1970s and 80s

          4 and 6-unit walk up blocks from 1970s and 1980s are really ugly, don't get much capital gain. Wealthy retirees do not want to be carrying their groceries up 2 flights of external stairs.

          If I was buying an apartment nowadays, I'd buy a modern, inner city high-rise apartment with nice views. Will get more capital gain than a 50-year-old ugly walk-up brick/concrete apartment in the suburbs, and will require fewer renovations/repairs.

          Also avoid strata fees for lifts, pools etc.

          Factor in about $30-$50 extra per week for heated lap pools, lifts, saunas, gyms, etc. Worth it in my opinion.

          • drfuzzy on 08/06/2023 - 06:57
            +1

            @ForkSnorter: It won't get more capital gain, but I'm glad someone is buying them.

          • activeflush on 08/06/2023 - 09:56

            @ForkSnorter: Not sure why @ForkSnorter being downvoted but those points are all true… There's this herd mentality "old builds are the best" but once you start looking, things like:
            - the higher ceilings
            - not having to drill into concrete/bricks to run conduit for extra power points or cabling (so much cheaper and easier)
            can genuinely make new apartments a better experience

            Not sure on capital gains, if you fully renovate an old unit then you might catch up to the price of new builds - but you then have to run through the strata gauntlet to get all the approvals which can be a nightmare in itself… However, you can't beat the space of the old units

        • boomramada on 07/06/2023 - 08:08
          +9

          I disagree, last 15 years, I was lucky enough to stay in three houses around new to a few years old.

          No issues were whatsoever other than the typical builder's defects during the hand over which they fixed.

          Another important thing is energy saving as new houses are way better insulated than old.

          Wiring in double brick house is pain in the butt, so is changing plmbing.

          Recently I moved back to a 40y house, nothing but issues, plumbing, aged electrical and insulation is none existing.

          You could argue new houses that I stayed in will be like old a few years down the track but still they are way better.

        • capslock janitor on 08/06/2023 - 09:11

          my ceilings are low

          but lets not forget the larger front lawn and back yards!

        • lonewolf on 08/06/2023 - 10:42
          +2

          I agree, Everyone i know including me who have bought houses built in the last 10-15 years have had enormous issues with build quality, short cuts taken. My manager ended up selling his house he had bought brand new and bought another house nearby that was much older as he got sick of chasing up the builder and tradies trying to fix issues that were there from the beginning. An ex of mine lived in a townhouse complex, where so many things were falling apart including roofs etc and they had bought new off the plan and it was only a few years old.

          Meanwhile my parents house build back in 1990 is solid as a rock with none of the issues i have faced with my 10 yr old house. And builders back then didnt seem to take as many shortcuts or maybe it was more heavily regulated. I have had tradies come into my house and get shocked at some of the shortcuts that had been done when the house had been built.

      • rumblytangara on 06/06/2023 - 23:14
        +4

        I very deliberately bought a good quality 40 year old flat over anything that was done within the last 10 years. The reasons were probable construction quality, and the newer places in the same price range were smaller and cheesier.

        Looking at places that are just 5-10 years old in the area that the OP is talking about, I could see that facades were starting to look like crap and were likely to have water problems (why are all new buildings going with flat roofs?)

    • Brakus on 06/06/2023 - 20:37
      +2

      I’m curious. Whats wrong with new builds?

      • Nedkellyinthebush on 06/06/2023 - 20:56
        +41

        They kind of fall apart

        • Brucegonemad on 06/06/2023 - 23:19
          -2

          VERY much depends on the builder, if someone's looking to flip for a profit, then yes likely it won't be good quality.

          If someone is building to live, then generally the opposite is true.

          Also depends on the location…generally the better the location, the better the build.

          You get what you pay for.

          • Papa Huggies on 08/06/2023 - 09:45
            -1

            @Brucegonemad: Not much correlation with location quite frankly, and oftentimes what you pay for in premium apartments is fancy veneers or the like, and the Strata will be huge.

            • rumblytangara on 08/06/2023 - 10:53

              @Papa Huggies: I'd agree… I am in a 'nice' area and have seen a load of newer apartment buildings when flat hunting prior Covid several years ago. They were obviously being thrown up quickly and cheaply, to appeal to foreign (HK/China) buyers who are used to a certain look and a certain obliviousness to building quality. Big reliance on cladding and nice bright white concrete walls to appeal to the buyers.

              Returning from overseas, I've since been back to the same buildings and yeah, after just 3-4 years they are looking significantly more run down- water stains all the way down the outer walls and I'd expect long term problems from water pooling on the flat roofing.

              On the other hand, I've also seen some newer (10 year old) apartments which are extremely high end, well built and well maintained. But these flats cost more than the average Sydney house.

              The variability is all over the place, and variability is a risk. Getting a handle on which builders are good and which builders are shoddy is hard, and pretty much requires a degree of insider knowledge.

              Having a place that is double brick external and what appears to be brick internal has it's upsides and downsides. The insulation is great, and it's also nice having walls that you can't accidentally put holes into by stumbling into them. But yeah, installing electrical or data cabling is problematic. Overall, I prefer the more rugged walls.

            • Brucegonemad on 08/06/2023 - 21:30

              @Papa Huggies: My knowledge is not really based on apartments, more so houses…it is definitely true…just take a look at the house quality being built in Point Cook VIC and compare it to Camberwell VIC etc

      • Caped Baldy on 06/06/2023 - 21:06
        +21

        Building quality is shocking. It often takes several years for issues to emerge and in that time the builders often dissolve the company so they're no longer responsible for repairs!

        • Brakus on 06/06/2023 - 22:15

          Is there any way then for buyers who buys new properties to protect themselves from this? Are there checklists of things required in the building or reputable builders?

          • Caped Baldy on 06/06/2023 - 22:59
            +14

            @Brakus: Sure, but they're not that practical.

            The NSW building commissioner is working on it but there are a lot of dodgy builders. His team inspect and have ratings for builders but a lot of issues are hard to identify. It's not practical to check the amount of rebar in concrete or even the thickness or concrete mix. How are they going to check the foundations or have the time/money to check every drawing?

            The system is a bit rigged in NSW, the Lib gov loosened checks by allowing private certifiers to inspect and certify construction work. But guess who they are paid by? That's right, the builder. So they're obligated to say nothing or they don't get paid.

            For a private residential builds, you should have your inspections at hold points or by a qualified inspector.

            Why go through the hassle when you can buy something a bit older?

        • capslock janitor on 08/06/2023 - 09:13

          builders often dissolve the company so they're no longer responsible for repairs!

          this really happens often ??

      • Ghost47 on 06/06/2023 - 22:13
        +8

        If OP is going for a unit, everything.

        The size of them, the build quality, the amount of units they cram into a building. As time has gone on and as property has become more and more commercialised, developers have focused more on profit margins and to maximise margins you cram more people in, you use cheaper materials and you increase the price.

        • Sinnerator on 07/06/2023 - 08:29
          +3

          Everything you have said is valid, this is the new future for BIG AUSTRALIA, that and 3 families living in a house

    • Stewardo on 06/06/2023 - 20:39
      +6

      Don’t buy built after 2000

    • drprox on 07/06/2023 - 18:27

      Totally agree

  • redfox1200 on 06/06/2023 - 20:15
    +3

    dont buy a unit, it wont appreciate in value much and will just cost a bazillion dollars in strata

    • alvian on 06/06/2023 - 20:22
      +17

      There are 2 bedroom houses on the Upper North Shore for $700k to $800k?

      No, so your advice to buy a house is basically useless.

      • CyberMurning on 06/06/2023 - 20:24
        +2

        Yeah too cheap.
        Add another 200k then you may see few

        • drfuzzy on 08/06/2023 - 06:59
          +7

          The 200km commute to school for my children is costing me a fortune in school shoes and bike tyres.

      • redfox1200 on 06/06/2023 - 20:26
        +5

        maybe instead of the 2k per quarter strata, could just borrow an extra 150k for the same cost.

      • redfox1200 on 06/06/2023 - 20:28
        +2

        yeah upper north shore is totally chatswood

        • alvian on 06/06/2023 - 20:32
          +2

          The search filter included surrounding areas.

          Go find a $700k-$800k 2 bedroom house anywhere north of the bridge and south of Hornsby.

          • redfox1200 on 06/06/2023 - 20:42

            @alvian: https://www.realestate.com.au/property-townhouse-nsw-marsfie…

            damn even this has strata, nsw is shite

            • alvian on 06/06/2023 - 20:44
              +2

              @redfox1200:

              1. Town house is not a house
              2. Guide $880,000 - $920,000 is outside the budget
              • redfox1200 on 06/06/2023 - 20:51
                -8

                @alvian: literally has house in the name

                • alvian on 06/06/2023 - 20:52
                  +1

                  @redfox1200: Still outside the budget regardless of whether a town house is a house. Realestate.com.au don't think so and its filter has separate entries for houses and town houses.

              • Brianqpr on 08/06/2023 - 07:48
                +3

                @alvian: That guide also means they are expecting over 1 million.

            • rumblytangara on 06/06/2023 - 23:19
              +8

              @redfox1200: TIL Marsfield is Upper North Shore.

              And that a townhouse is a house. By which logic, a penthouse is also a house.

              (Narrators voice: None of the above are true)

              • redfox1200 on 07/06/2023 - 06:37
                +1

                @rumblytangara: A townhouse is a multi-level building designed to mimic a traditional house that is owned on a strata title.

                A penthouse is an apartment or unit on the highest floor of an apartment building, condominium, hotel or tower. Penthouses are typically differentiated from other apartments by luxury features.

              • JelIyfish on 07/06/2023 - 20:23
                +1

                @rumblytangara: Personally I would call Marsfield lower-west, lower north shore.

                • rumblytangara on 07/06/2023 - 21:56
                  +3

                  @JelIyfish: Far as I can tell, it's generically "Northern Sydney." North Shore is on the east side of the Lane Cove River.

                  Needless to say, Marsfield is way outside the North Shore. And this is reflected in property prices.

                  • nobro25 on 08/06/2023 - 07:50
                    +1

                    @rumblytangara: Marsfield is part of Ryde Council. In news outlets they consider Eastwood North West.

        • Littlevu on 08/06/2023 - 10:28

          Think you have to go further like Tweed Heads.

    • imurgod on 08/06/2023 - 17:40

      Funny, both of my units have almost tripled in value and they return much higher rent to cost ratio.

      Not to mention the negative gearing and strata handling building repairs and maintenance.

      Houses will give you faster capital gains but much higher cost of purchase, repairs, etc. and lower rent.

      I couldn't afford to buy a house initially so I bought units and now I have the units and a couple of houses.

      Units are a good way to get on the ladder in my opinion.

      • UNO on 08/06/2023 - 20:27

        In what years were your houses and units built?

        • imurgod on 08/06/2023 - 20:38

          Units in the 80s and the houses 1920 and 1950.

  • jjjaar on 06/06/2023 - 20:21
    +3

    🔮

  • CyberMurning on 06/06/2023 - 20:25
    +30

    Q Best Time to Purchase Property?
    A sometimes in the past.

    • od1n on 06/06/2023 - 20:31
      +3

      Don't need to go too far. Yesterday is the best time.

    • AustriaBargain on 06/06/2023 - 20:34
      +16

      When I was a kid a single working mom could buy a large property. Today she'd be lucky to rent a small property. Millions of kids today have no intergenerational wealth to look forward to, investors have pulled the ladder up behind them. Realistically the best option is to find out if you are automatically a citizen in another country through parents or grandparent nationality and then move there.

      • dtc on 06/06/2023 - 22:04
        +2

        When were you a kid? I was a young commercial lawyer in the 1990s with no kids and I couldn’t afford a large house on my own (or, really, even a small house that wasn’t a long way out).

        And in the 1970s banks wouldn’t lend to single working mums

        • AustriaBargain on 06/06/2023 - 23:49
          +7

          A bit over an hour's drive out of Adelaide, I probably should have said. But those same properties are now worth over a million. Huge lots near the beach. Our own house was bought for like 38k, checked recently and it sold a few years ago for a 1.1 million. We moved before his huge increase in value and we only ever owned one home at a time, so increased house prices never put us ahead because house was only sold when another was bought when moving. Yeah the mortgage could be paid off when selling, but you had to buy another house that also increased in value. The only people who win are those who move away from the city or those who buy multiple houses to rent out to others. Only now it's probably too late to jump on the ladder, houses aren't going to increase from one million to 25 million, who could even afford that even if you owned ten of them. Median income is still like 48k or whatever.

          • infinite on 07/06/2023 - 19:36
            -5

            @AustriaBargain: LOL, you numpty. That's literally out in the country.

            Of course you can buy a nice plot of land in what would have been a 45min drive from civilization, where property values were 1/10th what they were 30min from the city.

            • AustriaBargain on 07/06/2023 - 20:10
              +1

              @infinite: Living an hour out of the city in Adelaide isn't so bad. The roads back then weren't so great, only now are there highways and trains out there. But still you could buy a house surrounded by a BI-LO, four schools, the beach, an hour drive to city centre. And there's still loads of empty land, they could build many thousands of more houses, they could build residential towers if they wanted. Except if they did it would lower land values because demand would drop, except the government would let in an extra million people from India to fill that demand anyway.

          • serpserpserp on 08/06/2023 - 16:15

            @AustriaBargain:

            Median income is still like 48k or whatever.

            Is it?

            • AustriaBargain on 08/06/2023 - 20:05
              +1

              @serpserpserp: Dunno. I imagine median income for an Australian adult is lower than median workers income, as not all adults work. And median workers income is lower than median full-time workers income, because not all workers work full-time.

        • ceroau on 08/06/2023 - 08:56
          +2

          My grandfather brought a 2 bedroom house with an attached granny flat that had another bedroom and loungeroom, a spacious standalone double garage with workspace at the back of it, on 3 quarters of an acre(huge amount of land compared to what you get in a suburb these days) for 274,000 in 1994 in western Sydney . He was the only one that worked fulltime at the time and he was basically supporting 6 people across 3 generations and my pop didn’t even finish high school.

          If you were a commercial lawyer in the 90s and couldn’t afford a “huge” home, you either have a vastly different idea on what constitutes as “huge” or were not looking in the suburbs or your cocaine habit was eating way too much into your earnings

      • Thaal Sinestro on 08/06/2023 - 02:06

        On another site, I recently saw a post stating "Moving back to Australia was the worst financial decision I have ever made". Housing is more expensive, services especially tradesmen cost twice as much, food, fuel and energy also noticeably dearer. Australia isn't the free market paradise people make it out to be, at least if you are lower class (ie earn less than median income).

        • AustriaBargain on 08/06/2023 - 02:16

          I would move to Thailand, except foreigners aren't allowed to own land there.

  • DannyC on 06/06/2023 - 20:26
    +3

    After the 12th interest rate rise with more on the way, do you really want a big fat mortgage right now?
    In saying that if a Unit is what you can afford sure go for it, however, I think you need to think of something bigger. 3 BR minimum. We have a 10 month old and the extra rooms are exactly what we needed without the place feeling like we are squeezed in.

    • coffeeinmyveins on 06/06/2023 - 22:08
      +10

      The question may be can you afford not to? Prices may never return to what they are now.

      • dasher86 on 07/06/2023 - 07:36

        The only way to do it is but where there is growth.
        And rent where you want live.

        • coffeeinmyveins on 07/06/2023 - 08:28

          Not always feasible when rents are skyrocketing and mortgages may attribute to 50% of your income.

          I reckon the days of picking a 350k property and sitting on it for two years to see it go to 800k are over.

    • peterpaoliello on 07/06/2023 - 21:36
      +2

      This is a blip in the lifetime of a loan. When interest rates go back down to the norm of 5% what have you saved really? And the first rate drop will trigger a run on houses whichll offset any savings from rates

      • Bren20 on 07/06/2023 - 22:44

        Yeah it's a blip but OPs borrowing power is also reduced by the blip

        Having said that, I say buy, get some equity building up

  • trustnoone on 06/06/2023 - 20:35
    +4

    Is it a good time to buy a unit?

    Time in market typically beats timing the market. Also when "interest was low - prices were high and borrowing was high". Everyone told me to hold off since interest rate is rising. Now that the interest rate is high, - prices have dropped a bit and borrowing has dropped a lot. Guess I'm saying, its always not great (though I am happy I waited!).

    Do you guys recommend brand new builds, builds in last 5 years or older builds? How do I ensure the build quality of the units? Any reputed builders to look out for who have developed these properties? Strata is mostly $1k per quarter for standard units and for higher floors its approx $2k per quarter.

    Some notes for new builds. A lot of the time the developer owns like 50 percent of it so strata (that they rented out) can be hard to get anything done, also sometimes internet and gas is locked to a company as developer gets kick backs. After 5 years I think its no longer a "new" build so developer sells a lot of them. Usually good to look at the starta history (and builder inspection) but since you can't do that with new builds. You can go on their website, see previous builds they've done, then buy their starta report.

    • Gunnar on 06/06/2023 - 20:41
      +1

      Everyone told me to hold off since interest rate is rising. Now that the interest rate is high, - prices have dropped a bit and borrowing has dropped a lot

      Did the people giving you this advice own property?

  • WreckTangle on 06/06/2023 - 21:00
    +1

    Sounds like a pretty low budget for that area. The 2 bedroom option may be doable.

  • ForkSnorter on 07/06/2023 - 07:54
    +9

    Don't listen to these people generalising about build quality of modern apartment buildings. It absolutely depends on the building. Do your own research. If you feel it's necessary, find an expert in the industry who can tell you about the reputation of various building companies. A quality high-rise nowadays will have way better build quality than a typical house or a typical brick apartment building from the 1970s. And it won't need to replace aging plumbing/electric wiring, etc.

    There were a few disasters 10-15 years ago when the building industry was improperly regulated, but they were mainly in NSW, and a few in Melbourne. There have been some tiny apartment buildings going up in Melbourne for a while, where your apartment is roughly the equivalent of a dog house. Avoid those.

    I rented an apartment in a 1980s building for 10 years, and over that time each owner had to cough up for new plumbing for the entire building, new balcony rails, new windows, painting of the entire building, some kind of new electricity system, new lift (twice!), new doors. These were extra expenses that weren't covered by the quite high body corporate fees. That's not including the necessity of most owners to individually renovate the entire inside of their aging apartment (which would cost an enormous amount nowadays).

    • Papa Huggies on 08/06/2023 - 09:52
      +1

      If you want a quick list, Meriton is pricey but generally good and honest. Companies like Bathla and Deicorp… stay away.

  • double_J on 07/06/2023 - 07:57
    +3

    If you don't have much room to wriggle financially, you need to consider the ongoing rate/cost including the raising interest rate, strata fee, council fee, electricity bill, water bill, etc.

    As your child is getting older, the expenses will be more (swimming lesson, music lesson, sports, etc), not to mention if you have another one in the near future.

    We personally like well maintained older units, but you need to be patient waiting & searching until a good one comes up in the market. As previous comment, ask for the strata report. Get your conveyancer to help you read it.

  • SF3 on 07/06/2023 - 08:03

    Yesterday.

    • HardQuiz on 07/06/2023 - 08:25
      +1

      If I read your reply tomorrow, does that make it today?

  • ForkSnorter on 07/06/2023 - 08:17
    -1

    OP should buy this apartment. If I had the money and wanted a 2nd property (I don't), I would absolutely buy this. I've stayed in this building several times when I visited Brisbane, and I know a bit about its history. Reputable builder, quality building, close to the botanical gardens, amazing facilities.

    • capslock on 07/06/2023 - 08:47
      +1

      But where will OP park his car?

      • ForkSnorter on 07/06/2023 - 08:54

        You're right, no parking spot with this apartment. Looks there are other apartments in the building for sale with parking spots, but they don't have balconies. I wouldn't buy an apartment without a balcony. Not having a car park is also a hassle. If it was one or the other, I'd prefer an apartment with a balcony than one with a car park. This building is pretty conveniently located, walking distance to everything, and bikeways nearby.

      • May4th on 08/06/2023 - 17:36
        +1

        OP doesn't need a car since he'll be flying from brisbane to sydney for work every day

    • jksk13 on 07/06/2023 - 09:48
      +1

      I've stayed in this building too. I was pretty high up (think the 40th floor) and my biggest gripe was the damn elevators. At peak hours (around 8am and 5pm), I sometimes had to wait 10 minutes just to get an elevator. The building is packed with airbnb's as well (my work put me in one of these), which some people may find a negative.

      • ForkSnorter on 07/06/2023 - 10:05

        Yeah that is the downside of high-rise apartments. Lifts can be busy at peak hours. Also, sometimes a lot of airbnb or hotel guests.

    • markathome on 07/06/2023 - 21:43

      The strata costs in such apartments can be quite high. Add to that the locked utilities due to an "embedded" hot water or electrical system and it's almost like you have a very cheap rental for life rather than your own place. Lift times and availability can absolutely be a problem too. And a building issue in such a large building can be catastrophic. I would not recommend.

      • ForkSnorter on 08/06/2023 - 06:24
        +1

        I agree with most of what you said. But in my experience, older boutique apartment buildings (3-10 floors) have higher strata fees. High rise apartments share costs among hundreds of people, which brings the per person cost down for many things.

        The fear of body corporate/strata fees for apartments is irrational in my opinion. They actually save you money. I've owned an apartment and a house. The house costs much more over the long run, because you have to pay to maintain/fix everything yourself. Council rates are generally higher for houses. You have to pay for insurance, whereas in an apartment it's included in the strata fee. I consume more electricity and water living in a house. I have to maintain the garden, which costs money. I have to pay to use the local pool and gym, whereas many apartments include a decent lap pool and/or gym.

        The likelihood of a building issue in a luxury high-rise like this is extremely unlikely. QLD has had stricter buildings regulations than NSW and VIC, and just hasn't had the same problems, especially in this kind of building. There are high-rise apartments all across Brisbane CBD that have stood the test of time with no disasters.

        But I do agree that you feel like you're renting when you own and live in a place like this. I prefer to own/live in a house, personally.

        • nobro25 on 08/06/2023 - 07:53

          I mean like difference between a house and apartment within the same suburb could be anywhere from min $500,000 plus difference to average of $1,000,000

        • serpserpserp on 08/06/2023 - 16:17

          whereas many apartments include a decent lap pool

          A lap pool should be 50m

          But in an apartment setting, 25m should be acceptable.

          However 99% of apartments that have a pool are 20m long or less.

  • Sinnerator on 07/06/2023 - 08:30

    Buy a large trailer and put a micro house on it
    IANAL

  • tallkid123 on 07/06/2023 - 09:05
    +3

    Is it a good time to buy a unit?

    If you're buying a PPOR (principal place of residence), then the same line of thinking doesn't apply compared to an IP.
    You'd need to weigh out how much you want to live in that particular unit alongside how much increased equity you could have.

    Any specific suburbs you can recommend?

    I own two units in Waitara/Hornsby area.

    One unit is 2 bedroom, 50 years old, close to Westfield and hasn't increased in equity at all since I purchased it in 2017.
    The other unit is 3 bedroom, less than 10 years old, highly defective and yet compared to similar sales in my complex, equity has already increased by $50k since I bought it in early 2021. But that's more down to how it's a 3 bedroom which is hard to find.

    Equitywise, I wouldn't recommend my area. Hornsby has much older apartments compared to Waitara (newer).
    Livingwise however, I would definitely recommend. Waitara in particular. Waitara is a tiny suburb but it still has its own train station, public oval, close to shops, green, safe, etc.

    • [Deactivated] on 08/06/2023 - 09:11

      $50k since 2021 you need to consider mortgage rates, council rates, strata, maintenance, stamp duty and capital gains. Then considering it’s a defective asset you’re in debt and liable for. Not worth it at all.

      If you’re renting it out, it might just scrape through being viable

      • serpserpserp on 08/06/2023 - 16:19

        You have no idea what he bought it for, if it is even debt funded or what rental returns he might get.

  • 82norm on 07/06/2023 - 09:05

    Meriton

  • jv on 07/06/2023 - 10:06
    +5

    Best Time to Purchase Property

    Prior to 20 September 1985.

  • ar7ist on 07/06/2023 - 20:35

    Are there any reputable builders in Melbourne that can be trusted for the build quality for new constructions?

  • Unlimited on 07/06/2023 - 22:07
    +3

    If you are in NSW, you might be in luck. The building commissioner there is doing a great job lifting the residential game for new builds.

    See this link to see developers and builders who have got an iCIRTrating, https://www.buildrating.com/ .

    Also, the reintroduction of 10 year building insurance on major defects will be another game changer.

    Bottom line, if I were you, I would buy something 20 year plus or buy from a builder or developer having an iCIRT rating and 10 year insurance on their building.

    Also, I doubt that anyone not being on the iCIRT list will get insurance on their building.

  • mokorusmania on 07/06/2023 - 23:25

    Why would higher unit has double the strate

  • jeeg on 07/06/2023 - 23:27
    +1

    A friend who was into construction told me that new houses these days "generally" (not all) have poorer quality/workmanships for the wirings and plumbing works….for instance he was saying years ago electrical wirings in houses are almost always run within conduits that are then chased in walls - these days most sparkies just embed the wirings directly within the wall and then plaster over them; he mentioned something about poorer quality plumbing pipes but i cant remember what it was.

    • greatlamp on 08/06/2023 - 08:55

      Plumbing pipes are made of copper lined plastic conduit now, instead of solid copper. However that probably makes them stronger even though it feels cheap

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