local anecdote - market bad

[mattnz]

Melbourne is definitely quiet, I have had a block of land on the market for the past 4 months. I have dropped the price from $480k to $455k and still no interest. The developer's blocks which are smaller and in an inferior position are on the market for $410k, (mine has partial water views).

My aim is to price myself at a level which makes it a genuinely better deal than the developer's blocks to attract buyers, but still no offers as yet.

 

[joanmc]

We also have our PPOR on the market at the moment.

When I discussed with agent the likely selling price he asked what I wanted. When I told him my really really happy with price he told me straight out- "ain't gonna happen". No stuffing around at all.

Then he told me what he reckoned we could get which I think is possible but it is nearly impossible to judge because of the type of property it is. Just stuff all to compare with. At least he was being honest.

 

[evand]

Thats a nice change.

[/QUOTE]You people think I'm having a whinge about this. I'm not; just telling you how the market is. FFS [/QUOTE]

Anyway, as we all know, the market doesnt care what plans we have for the money we want for a property. It is what it is.

I think its like selling a share. You may as well take what the market is offering now, as it will be more likely be less in the future. And more than what its offering now in avery loooong time.

If you need the money Marc, i say take what the market is offering now. As my granny used to say "you'll never go broke taking a profit son"

 

[skater]

You people think I'm having a whinge about this. I'm not; just telling you how the market is. FFS

I understand completely.

We had a renovated house that we put to market just before it tanked in 2003. We priced it at the right price, but values fell quickly and we ended up keeping the property because it was obvious that we weren't going to get anywhere near what we would have been happy with.

We sold it several years later for something closer to what we wanted. The place was cf+, so we didn't miss out on anything by holding on.

Best of luck with it.

 

[Ms Jade]

Mark, I feel for you & I'm also not surprised. I've been watching Frankston Sth closely for the last 4-5 mths. It has gone from a slow-down to almost a stand-still in a very short time. There are some people 'looking' but very few buyers and things are taking a looong time to sell. I have seen quite a few properties withdrawn; not surprising when you have to live with OFIs through your house every Saturday for months on end.

I also agree with you about not spending on a reno. Especially if you're already at the top end of the 2 bed villa market it won't increase the sale price. I just sold this on the weekend. Had to spend a bit on sprucing it up & presentation knowing that all I was doing in this market was increasing the saleability but not the price. Otherwise it would likely have sat on the market for ages.

 

[gooram]

on the plus side though, great buying opportunities and what you lose in selling at a lower price can more than be made up in buying something else

Absolutely! Great time to upgrade if that is part of your plan.

 

[Intrinsic_Value]

Thats a nice change.

You people think I'm having a whinge about this. I'm not; just telling you how the market is. FFS [/QUOTE]

Anyway, as we all know, the market doesnt care what plans we have for the money we want for a property. It is what it is.

I think its like selling a share. You may as well take what the market is offering now, as it will be more likely be less in the future. And more than what its offering now in avery loooong time.

If you need the money Marc, i say take what the market is offering now. As my granny used to say "you'll never go broke taking a profit son"[/QUOTE]

I think its actually like trying to sell shares in a microcap stock.
If there is no support volume then the position cannot be sold, unless one is prepared to take a massive hit.
Just have to wait for some support volume to come back into the market.

 

[evand]

yes i agree. Volume is crucial. Some stocks always have good volume (liquidity) some dont. Overall i agree tho, the market is lacking support atm. Its a bit spooked by uncertainty in Europe.

If the property or share market (and/or the stock) is trending up you can hold off and you'll probably get a better price. If its trending down and you need the money, sell i say. As its probably going to be less later.

I think its actually like trying to sell shares in a microcap stock.
If there is no support volume then the position cannot be sold, unless one is prepared to take a massive hit.
Just have to wait for some support volume to come back into the market.

 

[Deltaberry]

Market is badddddd... you don't want to be a seller now

Hope the RBA cuts rates by 200bps
I'll eat lots of wagyu beef tonight

 

[mattnz]

I'm learning a lot from this experience... Definitely sell when the market is on its way up, rather than waiting for the peak to sell. By the time you know it peaked, it is a bad time to sell.

 

[lizzie]

Absolutely! Great time to upgrade if that is part of your plan.

Not if you have to sell into the same market in order to do so.

We're debating whether to reno our PPOR up to the next value level or sell as is, buy a knockdown and finally build what we want rather than the endless reno's ... but ... don't know that we would get what we wanted for the PPOR to make the change viable and we would prefer to sell to be able to buy ... although the PPOR would return 10%+ on the current mortgage - but only 3% on value.

The property we would want to buy was on the market for ages before being withdrawn 2 months ago. It is only 5 doors down with similar spectacular views. Owners bought it for near $50k more than their final (before being withdrawn) price ... so they may be open to offers, past the period when r/est gets their cut and may be able to negotiate a contract where settlement wouldn't take place until 6 weeks after our place sells.

hmmmm - is definately a buyers market.

 

[Player]

In the current market we need selling agents like this one:

http://www.youtube.com/watch?v=HAeprWIOQqQ&feature=player_embedded

 

[Ms Jade]

Not if you have to sell into the same market in order to do so.

Well the theory is that you'd sell at, say, a 10% discount - but you'd also buy at a 10% discount. If you are trading up you're in front as you should save more $ buying than you forego on your sale.

The property we would want to buy was on the market for ages before being withdrawn 2 months ago. It is only 5 doors down with similar spectacular views.

Sounds like it is just waiting for you! Is it not feasible to just build new on your block and save all the transaction costs?

 

[virgo]

Sydney

Hiya

So far, only hearing anecdotal evidence about bad market in Queensland and Melbourne; i am very curious about Sydney...anyone care to share their own experience?

For me personally, just cooled off my IP purchase and i knew i had to "fight" off a few potential purchasers...

Hey! if top end is cooling off in Sydney; might just upgrade to a house of my dreams!

 

[hysterical]

Hiya

So far, only hearing anecdotal evidence about bad market in Queensland and Melbourne; i am very curious about Sydney...anyone care to share their own experience?

For me personally, just cooled off my IP purchase and i knew i had to "fight" off a few potential purchasers...

Hey! if top end is cooling off in Sydney; might just upgrade to a house of my dreams!

Not sure about the top end of Sydney, i just came back from a weekend trip to Sydney to view some properties in the Inner West and the OFI is crammed with ppl. Imagine about 5 to 6 groups of ppl viewing a 2 bedroom unit at the same time....crammed

 

[lizzie]

Sounds like it is just waiting for you! Is it not feasible to just build new on your block and save all the transaction costs?

Our PPOR was built in the early 90's - is dated brick but very solid and in good condition. 5bed/3bath/2living/pool. To good to knock down.

The one we are looking at is an old weatherboard from the 1960's 2bed/1bath/1living on a similar block and worth around $450k less.

Newcastle is still moving for the right properties at the right price. There is a lot more of so-so ordinary stuff on the market that is not moving. Rentals are really tight so potential IP's with good neutral returns are hard to find as they get snapped up very quickly ... especially when hubby is fussy about where we buy.

 

[gooram]

Not if you have to sell into the same market in order to do so.

Actually, that was the point.

Whilst you have to sell at a discount, you are also buying at a discount.
So if you're upgrading, presumably you are saving more on the buy than you are losing on the sell.

 

[buzzlightyear]

Interesting anecdotes from everyone.

I had recently made some moves about a possible sale of my Frankston Sth IP. A 4br house plus self contained unit on one title with three (3) unit site development potential as well.

Recent bank val 540k. I am renovating the house (final cost will be ~$25k). recent comps are around $600k. Rental return will be $610pw once the house is rented as well. However, these comps are 2 months ago and I know things have cooled. There is too much downside to risk to put in on the market at this time. Its not bleeding cash, so it won't go on the market. I suspect many people are thinking in a similar vain.

So from possible seller to possible buyer, I have reverted tolooking for a small 2br flat/unit maybe unrenovated there as well (low to mid 2's) I am trying to achieve a 6% after tax yield, but vendors are not easily budged. Yes, Bayview, I am looking at you . At the same time, I am not willing to sacrifice too much on location. ie FHSZ, close to transport etc

Interestingly, there are some renovated units that are being sold by what the REA is saying, is a motivated seller/builder, who needs to sell to appease the banks. We'll see how motivated this weekend.

 

[Aaron_C]

Interesting anecdotes from everyone.

I had recently made some moves about a possible sale of my Frankston Sth IP. A 4br house plus self contained unit on one title with three (3) unit site development potential as well.

Recent bank val 540k. I am renovating the house (final cost will be ~$25k). recent comps are around $600k. Rental return will be $610pw once the house is rented as well. However, these comps are 2 months ago and I know things have cooled. There is too much downside to risk to put in on the market at this time. Its not bleeding cash, so it won't go on the market. I suspect many people are thinking in a similar vain.

So from possible seller to possible buyer, I have reverted tolooking for a small 2br flat/unit maybe unrenovated there as well (low to mid 2's) I am trying to achieve a 6% after tax yield, but vendors are not easily budged. Yes, Bayview, I am looking at you . At the same time, I am not willing to sacrifice too much on location. ie FHSZ, close to transport etc

Interestingly, there are some renovated units that are being sold by what the REA is saying, is a motivated seller/builder, who needs to sell to appease the banks. We'll see how motivated this weekend.

So why don't you develop the site yourself if that is on the cards?

 

[sanj]

So why don't you develop the site yourself if that is on the cards?

or even get conditional approval, doesnt cost much to do, will set your block apart