New Sydney development offers to ‘freeze your rate’ with apartment purchases

A Sydney developer has made a unique offer to unit purchasers in a bid to soften the blow of future interest rate rises - and it could wipe thousands off their loan costs.

A view of the lounge area.

A Sydney-based developer has made a unique offer to entice buyers into their new apartments by offering to cover any increase in future interest rate rises.

The newly completed apartments at One the Waterfront in Wentworth Point are being sold and marketed by Piety Group, which would put rate rises of up to 1 per cent over the next two years on ice.

The offer applies across the range of one, two, and three bedroom apartments – meaning a two-bedroom apartment would save around $1000 per month based on a 20 per cent deposit if rates climb the full per cent.

ONE the Waterfront, Wentworth Point NSW

Subsequently, a three-bedroom apartment would save $1400 per month on the same deposit.

Piety Group Managing Director James Quigley said the move would be made in conjunction with Laver Residential Projects to make the “unheard-of” offer to investor and owner-occupier buyers against future moves by the Reserve Bank of Australia (RBA) to lift the cash rate.
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A one-bedroom apartment would save $1000 per month for a 20 per cent deposit.

“In recognition of recent rises in interest rates and the prospect of further increases, Piety is offering to help purchases with this interest rate support,” Mr Quigley said.

“We believe this direct cost saving will appeal to both owner-occupiers and investors alike.”

The offer comes as the RBA has raised cash rates from a record low of 0.1 per cent in May to 2.6 per cent.

For a typical homeowner with a mortgage of $500,000, a further increase of 0.5 per cent in October would result in homeowners forking out an extra $157 a month to cover repayments.

The offer to shield buyers from future rate rises aims to appeal to investors and owner occupiers.

Prices for the resort-style apartments start from $599,000, with the offer applying for all currently completed stage-two apartments.

Stage three of the development will go on sale next year, with off-the-plan construction commencing in 2024.

Laver Residential Projects Director Sam Elbanna said the offer provides an attractive lifestyle choice and an investment option with a strong appeal for the Sydney rental market.

Prices for the apartments start from $599,000.

“This is the first of its kind that I can recall in the Sydney market and I think this will give people confidence, and, more importantly, peace of mind when buying,” Mr Elbanna said.

“There has been uncertainty – however, we know from experience this is likely to be a short-term rate hike for buyers and our offer can help overcome this.”

Originally published as New Sydney development offers to ‘freeze your rate’ with apartment purchases