EP. 1270 BUYING IN LARGE STRATA COMPLEXES & THE HARSH REALITIES...

Why do large strata complexes instill fear in so many people? Is it the scale, the disruption, or just fear of the unknown? In this episode, we confront the myths and realities of big developments like Meriton and DeVy. From infrastructure concerns to community worries, we break down the initial resistance and reveal the long-term benefits often overlooked. With state-of-the-art amenities, commercial job influxes, and improved urban spaces, these projects might not be as scary as they seem.

Join us as we peel back the layers of skepticism and shine a light on the positives. Residents enjoy top-tier amenities such as gyms, saunas, and secure environments, all while benefiting from robust construction quality that ensures longevity and safety. Hear firsthand how these developments transform neighborhoods and create vibrant communities. Whether you're a skeptic or simply curious, this episode offers a fresh perspective that just might change your mind.

Transcript

Speaker 1: 0:01

Big evil, scary strata complexes, people. Some people traditionally steer away from them because they're big, and we're going to tell you about the reality of big strata schemes like Meritan and DeVy and things like that. Stay tuned.

Speaker 2: 0:29

I'm the ringleader, spooky or not spooky.

Speaker 1: 0:40

Yeah.

Speaker 2: 0:43

Spooky is my new favourite word as well. I reckon we get this question like every open home. When you attend, people are seeing for the first time and it's funny as a sales agent people go in and we try to sell them something before you go through the front door saying no, no, no, I'd never look at that. That's never going to be for me.

Speaker 1: 1:08

People love to hate big. I think I do think people love to hate big when you see, you know, some big infrastructure going in, like the big new hospital or the big new like it's like I don't know, like look at that building behind you, billy.

Speaker 2: 1:29

Well, this is the flagship development in dy. We're actually selling that. There oh wow and house. Yeah, I don't know if it's change that people don't like, you know, or or just the scale of it. You know it feels like if it goes wrong it's going to ruin everything.

Speaker 1: 1:49

Yeah, there's a natural born fear and I think that's clear. I think it's interesting fast forwarding five years on these buildings and then looking back on them. But I can certainly say that you know, when some huge buildings have gone into little residential areas, the locals really don't like it. The locals don't like the developers. The locals don't like the change. They often complain about car circulation or the amount of cars, how they'll get around transport.

Speaker 1: 2:26

Our northern beaches is already a little bit choked due to we don't have a train line so we've got just a couple of little roads leading to the city. So that sort of puts a bit of stress on that. So people are like really we can't take any more. People don't like the building when it gets built because these projects go on for years. So they learn to probably resent the project a little bit. But I think it's interesting coming out of the other end. As real estate agents we get exposed to those people that are like they like it. We get exposed to the people that live in there like this is cool, what's your take?

Speaker 2: 3:04

yeah, and and then you also get exposed to people five years down the track that go, wow, you know I can't imagine life without it. Because don't forget meritan by the lighthouse project, not just report residential living to they were that week why that could be heaven for high rise starlets, but it also brought all the commercial jobs down there, so Woolworths is probably their anchor and the third best in the state.

Speaker 1: 3:40

People love that shop. Yeah look, I think in terms of urban planning, if you're going to do rejuvenation, it's pretty hard to pull off rejuvenation without scaling it Like just to pull down something and build the same thing. It's not economical.

Speaker 2: 3:54

Yeah, yeah. These are probably the top four positives. The residents love the people that are living in the building. Love Number one is the amenities. Merritt and DY have probably got the best amenities in the building. Love number one is the amenities. Merit and DY probably got the best amenities in the suburb and that includes gym, sauna, spa, a residence garden, great pets, barbecues down there, great for entertaining just a really, really happy community. And it's got a building manager on site. The oldies love it. Great for security.

Speaker 1: 4:29

Great for just the day-to-day running the a big one also is when you go over three the base structure becomes a lot stronger. So even if you just hold and slide the sliding door off the property or a window, they just feel chunky. So when you go to, for instance, a house, they're really small, flimsy sort of windows. When you go over to these like 10 to 15 storey buildings they're real chunky the whole way through the building. So I do find the quality of construction it's often referred to in the building industry as tier three, tier two, tier one builders. When it's a tier one builder building something, they're just, they're just tonka tough. So I actually reckon it's, and I know it's, a much better build. Um, when it's, when it's a big, chunky building, the other thing you know, maintaining these things is not possible on a small scale.

Speaker 2: 5:45

So you know, the strata, um, you know, love it or hate it, the strata is fresh, that's up. The maintain, maintenance on a day-to-day basis is just like clockwork, you know they, they keep these things looking to schmick from inside and out. I think people like that as well the pro.

Speaker 1: 6:05

Yeah, I find the programmed maintenance on the bigger buildings is military, absolutely military. So that gets cleaned, bang on the spot the garage. Bang the bins. Bang the bins being cleaned in the bin room. Bang the you know, repainting the strata scheme. There's actually zero room for error in a big building.

Speaker 2: 6:31

So the program maintenance is, um is top notch yeah, and I think that's probably again one of people's um loves they, they, they don't have to worry about maintenance, they don't think about it. Yeah, obviously they pay strata levies, which helps to contribute to all that work. That's pretty normal and some people like that because they're not maintaining the house but they've got all the house amenities.

Speaker 1: 7:02

So, guys, if you've just tuned in, we're talking about strata schemes, big stratas, big buildings. Are they scary? Are they good? So would you live in one Bill.

Speaker 2: 7:17

Yeah, yeah, I would live here. Yeah, wow, I'd live here.

Speaker 1: 7:26

And you've got a pretty good look. I'll give you a good thing about talking to a real estate agent is we've got scale. It's just fantastic. We speak to all the sellers and all the buyers and we get a really good temperature control on good buildings, bad buildings, bad building, big, bad building, small, whatever we get a really really good feel on it. Small, whatever, whatever we get a really really good feel on it. So I think it's sort of pretty hard to find this information out there in the ether if you're considering buying and you feel you're sort of looking at, you know, a small boutique block of four or you're looking at us at a big monster block of three, like meritan dy's got 360 units what's the word on the street and this is it.

Speaker 2: 8:16

And all of these in 2019, that have resold, have made money.

Speaker 1: 8:21

The average about 40% capital growth. Yep, some we've seen as high as 60% from purchase. So it's just been astonishing how well they've actually done um in merit to dy. The bigger blocks look, I wouldn't say the bigger blocks perform better than the smaller blocks, but I would certainly say I wouldn't be deterred around it. Look, I think the reality is is sometimes you'll get that one person, um, negative nancy, um, or the know-it-all in your family or friends, and they go, oh no, no, big building bad, bad, bad, bad. And then you're like okay, well, I'm not going to buy it, I'm going to take that advice person. I don't think they've got the exposure that you would have billy or I would have with it in that transactional exposure to small buildings. Big buildings, I'm going to say the bigger buildings, no problems there, they are built better. Um, they're super strong. The strata levies guess what about the strata levies? They're divided between 400 units, so I 300 units. So I find this strata levies quite reasonable. I wouldn't say cheap and I wouldn't say expensive well what you're getting.

Speaker 2: 9:34

In some cases I feel in the bigger buildings you can see where your money goes better than a little bit. You've got the index desk. You've got the conservation service, you've got the access. You've got the conservation service, you've got the amenities justify it. Sometimes it hurts a bit more when you're spending quarterly a thousand bucks and you're not sure where it's going. A bit of garden maintenance.

Speaker 1: 9:56

Yeah, and I also think for accessibility there's a lot of consideration with newer buildings. So some of the like you like. So you know indeed why we've got three-story walk-ups. So if you're living on the third floor and you've got an elderly coming to visit you, um, they can't, um, maybe, maybe that's a good thing for you, um, but but you know, the accessibility is number one, uh, with with these bigger complex as well. So there's, there's a lot to consider. Do you find the bigger complex or complexes are a bit more like a retirement village?

Speaker 2: 10:30

not at all. Certainly the older clients, I like them, but no, in this development. As an example, we sold one bedrooms to first-time buyers that moved in and once in, just you know, professional couples. Just really good work by balance. They're on the doorstep of the line bus stop, 800 feet. We bought, you know, sold them to, two bedrooms to young families and who? Then quite an investment in the building, three bedrooms, the older couples, downsizing, a real mix, your mix, but it does appeal.

Speaker 1: 11:02

Billy, are we going to wrap it up and have we helped everyone out there in big buildings talking about big buildings?

Speaker 2: 11:09

Just one last question from David.

Speaker 1: 11:11

Mr Novak, are you on your way to?

Speaker 2: 11:13

McPherson.

Speaker 1: 11:22

David, am I on my way to McPherson?

Speaker 2: 11:26

Yeah.

Speaker 1: 11:27

Who's David?

Speaker 2: 11:30

David scored Live on Instagram. Game's up and running.

Speaker 1: 11:37

What about Jeff Luby? Morning gentlemen, I've got loads of. Instagram comments ah, now the building Commissioner is assuring better quality. It's true with the bigger buildings. The building Commission's onto these big buildings. What other comments you got on insta?

Speaker 2: 11:58

people saying yeah, bit too busy, we don't like it. Built well, well built, uh you're. 15 seconds have passed that's a show. Have a good day, guys. Happy monday, love you see ya bye.