New Investment Property in Kingswood - Is it too good to be true?

Ash-Say on 09/03/2019 - 16:41

I have been looking for investment property and found two new projects in Kingswood area.

https://www.realestate.com.au/project/omega-apartments-kingswood-600024042?cid=pppdp|buy:pdp:mediaviewer-overview

https://www.realestate.com.au/property-apartment-nsw-kingswo…

Both of them claiming to have discounted heavily on prices. I spoke with them and they stated the prices have been dropped by developer as they have lot of new project coming up so they want to sell quickly.

Anyways the unit finish quality is not bad. They are just across Kingswood station and Nepean hospital is also just 3-4min walk.I understand it will be attracted to people working in the hospital and then capital growth in next 7-8 years once new airport is built. University of Western Sydney is also not far away. It will be long term investment.

Would you consider investing in these units for $400k? Currently only 24 x 2 bedroom units are available for rent so unsure how much is vacancy rate.

Many thanks for your input.

Financial

Comments

  • AustriaBargain on 09/03/2019 - 16:55
    +3

    woah, those prices are amazing. I've been looking for something like this for a long time. Our family is looking for 10 mil to invest, might see if we can snap them all up at once. Thanks for the tip, this is going to make me a fortune.

  • MrHyde on 09/03/2019 - 16:57
    +1

    What has your financial analysis of the estimated income and expenses show for the property?

    If the numbers match up, go for it.

  • [Deactivated] on 09/03/2019 - 17:05
    +5

    Following usual ozbargain mantra…

    Buy now. Ask questions later.

  • urahara on 09/03/2019 - 17:11

    Just making you aware that Australian property market situation is more worrisome that it actually appears. But surely you can buy it if you have numbers to back yourself up.

    • EightImmortals on 09/03/2019 - 17:31
      +1

      Grapevine tells me that JP Morgan has advised all of it's investors to get out of aussie property. Will try to find some more info.

  • TheMindsetTraveller on 09/03/2019 - 17:46

    $400,000 or thereabouts sounds good value on face value.

    If its close to the hospital and university as you say, then good potential for stable rental. Where is the nearest major shopping centre? And train station? Sorry I haven't been out that way in a long time.

    That said, Great Western Highway - that is a major / busy road way, so check the plans carefully and make sure your apartment is facing away the road to minimise road noises.

    Getting in now as an investor is a good idea - lenders although still strict are loosening up their criteria, and Labor's proposed changes to negative gearing means properties acquired now should be grandfathered ie you can still negative gear.

    If its for a place to live in, I would be sitting tight and waiting till after the Federal election.

    • kerfuffle on 09/03/2019 - 17:57

      If its close to the hospital and university as you say, then good potential for stable rental. Where is the nearest major shopping centre? And train station?

      Westfield Penrith. And Kingswood has its own train station

  • WreckTangle on 09/03/2019 - 17:48

    Meth house?

  • [Deactivated] on 09/03/2019 - 18:35
    +6

    Property in Kingswood

    Leave the money on the fridge wog

  • Sofie519 on 09/03/2019 - 21:10

    Get an independent valuation on the property and you will find out whether 400k reflects the market price or if it's an actual discount.

    • HighAndDry on 11/03/2019 - 10:55

      But even then, current market value is no indication of future market value. It could be worth $500k now and OP would be getting a bargain, but if prices are going to fall off a cliff in the future, that would be little consolation to OP.

      • Sofie519 on 11/03/2019 - 12:23

        I was merely alluding to the fact that the OP perceives the property to be cheap due to developer massively discounting the price. Quoting "too good to be true?"

        So was the price discounted or was it overinflated and thus the discount merely representative of a reality check.

        Without going into depth of what makes a good or bad investment, risks are always quantifiable. Irrespective of a rising or falling market, sound investment principles should always be applied.

        • HighAndDry on 11/03/2019 - 12:44

          So was the price discounted or was it overinflated and thus the discount merely representative of a reality check.

          Fair point, true.

  • t_c on 09/03/2019 - 21:13

    Down down, prices are down

  • markathome on 10/03/2019 - 08:56
    +2

    I would not invest $400k for an apartment 1hr 20min from the CBD.

    • SlavOz on 10/03/2019 - 16:55
      +1

      CBD is a shithole which you're basically stuck in. Western Suburbs has like 10+ major shopping centres all within a 20-30km radius with the added luxury of being able to park your car and breathe air that isn't from a combustion engine. It has the appeal, especially for families and with the new airport and major business hubs being built up in Rossmore. Using the CBD as any sort of yardstick is LOL

  • TheBilly on 10/03/2019 - 11:56
    +3

    I live close by… crap area. They are discounted because they cannot sell the properties not because they have other projects. I wouldnt spend 400k on a Kingswood apartment. It is a typical fallout from the recent boom where every developer under the sun thought they could just put apartments anywhere, charge what they want and people would buy. Hold this 400k because you'll find houses in the same area dropping to that point soon enough.

    • Ash-Say on 11/03/2019 - 06:44

      Thanks for your input. I agree with your rationale on units but I don't think house prices will fall to $400k due to upcoming infrastructure.

      • TheBilly on 11/03/2019 - 20:16

        Go on real estate dot com and look at the sold history for kingswood a house just sold for $375k on the 21st of Feb with a 650m2 block. NOW… I'll admit, it is a very bad house. BUT. It is still a house hence proving my point. Plus how much longer will better houses take to fall to the $400k to $500k mark, not long.

        The market is really really down right now. The infrastructure you speak of if the Airport. It will be a decade before completion.

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