GeoSurfer Posted July 22, 2015 Share Posted July 22, 2015 Hi all, I've been looking on Real Estate and so on and I've noticed quite a lot of what appear to be new build apartments on nice complexes with a pool and a gym included, I'm sure you've seen a few. As a young single professional with no urges to do any gardening or pool cleaning these places seem tailor-made for people like me, but I've seen them available for less than the $450+/week I would expect them to be, judging by the pictures and location alone, so what's the catch? I can see why they don't appeal to families but why aren't they snapped up as quickly as you'd perhaps think? I'm certain I could find one that was within my price range and if the only downsides are the fact they are usually 1 bedroom/not for families I may be onto a winner, but I was hoping someone could shed some light.... Cheers. Link to comment Share on other sites More sharing options...
Guest Dave53 Posted July 22, 2015 Share Posted July 22, 2015 Often , well around Sydney anyway , these units are bought up by the local Dept of Housing and as a result are then let out to Housing Dept tenants . I shouldn't tar all these tenants the same , however , a lot of times undesirables move in and I guess you may know the rest .. They are a poor investment for potential buyers too , as often the values are degraded by the actions of the housing tenants .. That's my opinion anyway.. Dave C Link to comment Share on other sites More sharing options...
GeoSurfer Posted July 22, 2015 Author Share Posted July 22, 2015 I thought the neighbours may be a factor (guess they can't all be 'goooooood friends'). I'd imagine the complexes aren't big enough for bogan families though? I'd have thought they'd mostly be quiet but very unsociable Chinese/Asian migrant couples as there often are in London. I'll only be renting for the first few years, so should it be a disaster I can easily bail when the contract is up. Link to comment Share on other sites More sharing options...
srg73 Posted July 22, 2015 Share Posted July 22, 2015 Apartments will have a body corporate which you need to check. Can be an additional $1,500 per quarter. Check the sink fund ensuring there is plenty of money there (for repairs) as if low and repairs are required then residents have to top up. You pay a premium for new, most are sold off plan to international investors as they are only allowed to invest in new stock. The building materials are generally cheap with an intended life expectancy of 50 years max. Many apartments are very small and tightly packed due to relaxation on planning rules meaning increased density. Finally public transport is reflected in the price and some blocks are on very poor plots, odd shape and beside highways, railways etc. Simply recommend you do your research. S Link to comment Share on other sites More sharing options...
Chortlepuss Posted July 22, 2015 Share Posted July 22, 2015 New builds with pools etc are fine to rent - but buying to let is a different matter - I've seen some pretty shonky properties built recently, all for investor market - I did ask one real estate 'who rents these?' and she said that there's so many on the market (Brisbane) that they're having to discount rents to get anyone in, and rental vacancies and inability to sell mean that some people are going bankrupt... Body corp can be shockingly high, so sensible money avoids pools, gyms, lifts - anything that gives someone an excuse to rip you off. My daughter and her mates were recently offered a large discount to rent a townhouse in a very desirable location (West Brisbane). The number of rental properties in Brisbane available does seem incredibly high IMO but that's negative gearing for you - encourages every man and his dog to get an investment property. Link to comment Share on other sites More sharing options...
Marisawright Posted July 22, 2015 Share Posted July 22, 2015 I've been looking on Real Estate and so on and I've noticed quite a lot of what appear to be new build apartments on nice complexes with a pool and a gym included, I'm sure you've seen a few. As a young single professional with no urges to do any gardening or pool cleaning these places seem tailor-made for people like me, but I've seen them available for less than the $450+/week I would expect them to be, judging by the pictures and location alone, so what's the catch? Check where they are - if it's in Sydney, there's such a shortage of land that many new apartments are under a flight path or right next to a railway line or a motorway, so noise is an issue. They're often not that well built either (Australian building standards are not as high as the UK and there's a lot of corruption with approvals), so noise between apartments can be an issue too! Size can also be a factor - bear in mind they take those photos with a fisheye lens, so check the actual dimensions of the flat and, importantly, check whether the size includes or excludes the balcony or garden area. I've never heard of the Housing Commission (equivalent of council housing) buying up these apartments in Sydney - I'd have thought they were too expensive, unless you're talking about the outer suburbs. However, just like in the UK, apartment blocks are often built in urban renewal areas so while your neighbours in the flats themselves will be fine, the area around the block may not be so pleasant! Having said that, a good complex could be ideal for you - the right block in the right area will have lots of young professionals like yourself, you'll have all the facilities at your fingertips and probably good transport as well. Link to comment Share on other sites More sharing options...
NickyNook Posted July 23, 2015 Share Posted July 23, 2015 If the deal really does look too good to be true (nice photos, good location, lovely furniture, super cheap rent) consider it might be a scam. If, when you call up, the landlord/owner is supposedly 'overseas', then it definitely is a scam. http://www.realestate.com.au/blog/how-to-protect-yourself-from-rental-scams/ Link to comment Share on other sites More sharing options...
scuffythetugboat Posted July 24, 2015 Share Posted July 24, 2015 I wouldn't live in one. There are a few articles on the problems with the cladding on these buildings and the risk of a major fire occurring in the next couple of years. Have a read and make your own mind up. Link to comment Share on other sites More sharing options...
Parley Posted July 24, 2015 Share Posted July 24, 2015 Apartments will have a body corporate which you need to check. Can be an additional $1,500 per quarter. Check the sink fund ensuring there is plenty of money there (for repairs) as if low and repairs are required then residents have to top up. You pay a premium for new, most are sold off plan to international investors as they are only allowed to invest in new stock. The building materials are generally cheap with an intended life expectancy of 50 years max. Many apartments are very small and tightly packed due to relaxation on planning rules meaning increased density. Finally public transport is reflected in the price and some blocks are on very poor plots, odd shape and beside highways, railways etc. Simply recommend you do your research. S He seemed to be speaking as a prospective renter. I believe owners pay the body corporate fee not the tenant. Link to comment Share on other sites More sharing options...
JockinTas Posted July 24, 2015 Share Posted July 24, 2015 I wouldn't rent/buy a Meriton apartment. High rise slums of the future. Link to comment Share on other sites More sharing options...
newjez Posted July 24, 2015 Share Posted July 24, 2015 I wouldn't rent/buy a Meriton apartment. High rise slums of the future. If you are renting and you don't like it, then you can just leave. Link to comment Share on other sites More sharing options...
MARYROSE02 Posted July 24, 2015 Share Posted July 24, 2015 I was not aware of 'new build' appartment blocks being leased by the Dept of Housing, though they could do that. New build appartments are just what they say - 'Brand new' and they are all over Sydney. 30 years ago, my flat was a 'new build.' Some suburbs of Sydney have masses of new units going up, and in others, they are being built amongst older buildings, as here in Surry Hills. There are no disadvantages that I know of in renting or buying new build appartments, compared to older ones. Meriton have been building blocks of units for decades, so this IS the future, and I don't know where the Meriton high rise slum 'burbs are? Pyrmont perhaps? Or Artamon, or Bondi Jn. I don't know. They build everywhere, but Pyrmont was developed 20 to 30 years ago, I seem to recall. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 24, 2015 Share Posted July 24, 2015 Apartments will have a body corporate which you need to check. Can be an additional $1,500 per quarter. Check the sink fund ensuring there is plenty of money there (for repairs) as if low and repairs are required then residents have to top up. You pay a premium for new, most are sold off plan to international investors as they are only allowed to invest in new stock. The building materials are generally cheap with an intended life expectancy of 50 years max. Many apartments are very small and tightly packed due to relaxation on planning rules meaning increased density. Finally public transport is reflected in the price and some blocks are on very poor plots, odd shape and beside highways, railways etc. Simply recommend you do your research. S Body corp's biggest single rip off and fraught with potential problems but hardly likely to impact the renter as owner pays. (at least all the ones I looked at in WA) Main issues would be size with all to many being built for the overseas student market that I can see. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 24, 2015 Share Posted July 24, 2015 I was not aware of 'new build' appartment blocks being leased by the Dept of Housing, though they could do that. New build appartments are just what they say - 'Brand new' and they are all over Sydney. 30 years ago, my flat was a 'new build.' Some suburbs of Sydney have masses of new units going up, and in others, they are being built amongst older buildings, as here in Surry Hills. There are no disadvantages that I know of in renting or buying new build appartments, compared to older ones. Meriton have been building blocks of units for decades, so this IS the future, and I don't know where the Meriton high rise slum 'burbs are? Pyrmont perhaps? Or Artamon, or Bondi Jn. I don't know. They build everywhere, but Pyrmont was developed 20 to 30 years ago, I seem to recall. Fees to Body Corp definitely need investigating. Not just cost, which can be extensive, but how many partake in the meetings as well. Link to comment Share on other sites More sharing options...
Marisawright Posted July 24, 2015 Share Posted July 24, 2015 I was not aware of 'new build' appartment blocks being leased by the Dept of Housing... There are no disadvantages that I know of in renting or buying new build appartments, compared to older ones. Meriton have been building blocks of units for decades. No, I had never heard of the Dept of Housing buying new build apartments either. Since they are trying to move tenants further out to the cheaper suburbs, I suspect that's where they're doing it (if they are) - the average young professional like the OP is more likely to choose an inner city area, or one of the new developments slightly further out like Rhodes or Breakfast Point. Yes, Meriton has been building for decades. I used to be involved in the construction industry and the dodgy quality of Meriton apartments is legendary. I've had tradesmen come and work for me, who were sacked by Meriton for being "too fussy" about their work, which meant they were too slow - their philosophy is, don't worry if the kitchen cabinets aren't quite straight, just slap them up on the wall. That said, I'd have no problem renting a Meriton apartment - I'd just be scared to own one! Link to comment Share on other sites More sharing options...
flag of convenience Posted July 24, 2015 Share Posted July 24, 2015 I wouldn't rent/buy a Meriton apartment. High rise slums of the future. Well pretty much the direction the future holds so may as well get used to it. While at it a demand for higher quality wouldn't go amiss either (at affordable prices) Link to comment Share on other sites More sharing options...
Guest Posted July 24, 2015 Share Posted July 24, 2015 Fees to Body Corp definitely need investigating. Not just cost, which can be extensive, but how many partake in the meetings as well. Not just body corp management themselves....Lifts cost a fortune to maintain and will be a big part of fees. Gardening etc Link to comment Share on other sites More sharing options...
newjez Posted July 24, 2015 Share Posted July 24, 2015 Not just body corp management themselves....Lifts cost a fortune to maintain and will be a big part of fees. Gardening etc All of that should fall on the owner not the renter. Link to comment Share on other sites More sharing options...
Guest Posted July 24, 2015 Share Posted July 24, 2015 All of that should fall on the owner not the renter. Yeah I was just replying to body corp fees... Should be payable by the owner as you say. I would rent one, get decent facilities and don't need to pay upkeep and may be able to get a bargain due to flooding the market Link to comment Share on other sites More sharing options...
MARYROSE02 Posted July 24, 2015 Share Posted July 24, 2015 I don't go as often as I should. It does not affect renters of course. Link to comment Share on other sites More sharing options...
GeoSurfer Posted July 24, 2015 Author Share Posted July 24, 2015 Yeah sorry I should have specified, I'd be renting not looking to buy. Hopefully that means the body corp thing doesn't apply. The size thing is a good point, I've learned to see past the photos, the same thing happened in London where they tried to make properties look bigger than they were. I'd be looking at getting one in the centre of everything if I could, somewhere like Kangeroo Point in Brisbane which caught my interest although I'd need to research the transport in areas like that. Not overly concerned about noise, one of the benefits of being hearing impaired is the blissful nights silence. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 25, 2015 Share Posted July 25, 2015 Not just body corp management themselves....Lifts cost a fortune to maintain and will be a big part of fees. Gardening etc Never paid any extra when renting while looking to buy in Perth. Swimming pool, gardens all up keep included in rent. Not sure if that is what you mean though. Yes there are serious costs which can certainly pick at yield substantially. Reason why I asked to examine the minutes and prior costs imposed as well as interest shown by owners in attendance . Amazing how few take an active interest in their investment, while a few over compensate. Link to comment Share on other sites More sharing options...
srh82 Posted July 25, 2015 Share Posted July 25, 2015 There is massive oversupply of apartments in Brisbane at the moment if industry commentators are to be believed. Newstead, Hamilton Harbour to name two areas where they are throwing up these apartments right left and centre. My opinion: go for it. You should have good negotiating power at the moment to get a good deal. Link to comment Share on other sites More sharing options...
Marisawright Posted July 25, 2015 Share Posted July 25, 2015 I'd be looking at getting one in the centre of everything if I could, somewhere like Kangeroo Point in Brisbane which caught my interest although I'd need to research the transport in areas like that. . Ah, you're in Brisbane, that makes sense. There is an oversupply of new apartments in Brisbane, so that tends to depress rents. Link to comment Share on other sites More sharing options...
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