local anecdote - market bad

[buzzlightyear]

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

Right now, the end vals for the townhouses that you would build, do not offer enough return for a retail developer. Owner/builder may be different.

Its a nice enough return for me when rented out ie will be marginal CF+ after tax. The option of selling was there because another more expensive opportunity was being considered.

The other option that I have now is to subdivide them as is and put them on two titles. They are already separately metered, rated etc.

Sanj, you are right that's another option

 

[BayView]

Thats a nice change.

And of course; you never whine about stuff, just like everyone else here, right? pffft.

 

[hobo-jo]

BayView, your post made an appearance on Macro Business this morning:
http://macrobusiness.com.au/2011/07/concern-spreads-for-melbourne-property/

 

[Ms Jade]

The other option that I have now is to subdivide them as is and put them on two titles. They are already separately metered, rated etc.

I reckon this would be the way to go. It may take a while but it shouldn't cost you much and would increase your total sale price. Developers have all but disappeared down here, due mainly to the combination of FCC and the dearth of bank lending. No one is paying a premium for dev potential sites right now.

 

[BayView]

BayView, your post made an appearance on Macro Business this morning:
http://macrobusiness.com.au/2011/07/concern-spreads-for-melbourne-property/

HEY!!!

I'm (in)famous!!

I can't believe they quoted it word for word though.

Some folk in Frangers will see the word Frangers and be most upset.

Interesting to see what the agents' reactions will be.

 

[lizzie]

Oh well ... as most people atm, we have decided to stay put and renovate. No stamp duty in the government coffers from us this year. With the double sale of houses (selling our and buying another) would've amounted to over $100k the government has missed out on ... but will go a long way towards our reno.

I see this as a major trend also affecting the current situation - due to the uncertainty of capital growth (to cover buy/sell cost expenditure) and people being more aware of the cycle of money, even if they do have it, it is overwhelmingly cheaper to stay and upgrade your own home than move.

 

[Sheryn]

I reckon you are right

Oh well ... as most people atm, we have decided to stay put and renovate. No stamp duty in the government coffers from us this year. With the double sale of houses (selling our and buying another) would've amounted to over $100k the government has missed out on ... but will go a long way towards our reno.

I see this as a major trend also affecting the current situation - due to the uncertainty of capital growth (to cover buy/sell cost expenditure) and people being more aware of the cycle of money, even if they do have it, it is overwhelmingly cheaper to stay and upgrade your own home than move.

I think more people will think about renovation (since they read newspapers and watch TV) rather than moving as more people are uncertain of incoming money eg. job security, reduced hours of work and increased cost of living and building.

What I am waiting for is for the NSW govt. to do something to stimulate first home owner buyers, now they may not do this for year(s) but I think IR's need to come down .25 x 2 moves at least and that may be enough to put a floor under the sharemarket as well.

NSW is wallowing in some big waves atm. I read somewhere that the cost of living is 5K more in NSW.

I wonder how much the decreased activity in the housing sector has reduced the NSW govt expected income last financial year?


Cheers
Sheryn

 

[BayView]

Update on our attempt at a sale in Frangers;

We have signed a new tenant who will be moving in on Tuesday, and have told the selling agent "nice try, thanks for your efforts, but it's over".

He understood, was disappointed and insisted he could still get a sale.

I could get a sale too in 5 mins....sell it for half price.

 

[Property Meister]

Update on our attempt at a sale in Frangers;

We have signed a new tenant who will be moving in on Tuesday, and have told the selling agent "nice try, thanks for your efforts, but it's over".

He understood, was disappointed and insisted he could still get a sale.

I could get a sale too in 5 mins....sell it for half price.

love it when these agents promise the world,

why dont you say to him along the lines of,

so tough guy, you think you can sell it for above a certain amount??? if you are so sure about it, how about you advertise it out of your pocket expenses, and once it sells, for the price, you can take it out of the proceeds of the sale....hell, double the comission for the amount above a certain price!

 

[BayView]

love it when these agents promise the world,

why dont you say to him along the lines of,

so tough guy, you think you can sell it for above a certain amount??? if you are so sure about it, how about you advertise it out of your pocket expenses, and once it sells, for the price, you can take it out of the proceeds of the sale....hell, double the comission for the amount above a certain price!

Have done similar to this before.

Made no diff.

The properties are only worth what they are worth, so when they promise stuff they can't fulfill, they only waste their time.

Unless of course they can condition an unsuspecting seller down, which they are trained to do.

 

[daniellee]

Hi Bayview,

We recently sold our apartment in Oakleigh. When we did our initial research on past sales, we thought it might go for around $385K. So got an agent who priced it on a $380K to $410K.

The market fell away pretty quick once the property got listed, with units selling for around the same price range. Even though our apartment was in a good location and well-maintained standard, buyers were going for units with that bit of land further away from the train station / amentities.

After a few weeks, we decided to pull the property off the market and have it leased, even getting an pre-opening application with our appointed property manager.

The selling agent insisted on continuing marking the property before we got a tenant, and on the 6th week, he came back to us with an offer for $371K. At that point, we realised the market had gone south and dropped our price accordingly.

So, the property got sold. We effectively broke even after selling cost and factoring inflation. We paid for the luxury of having our own home and not having a landlord.

Now, we are back to renting, but that is another story.

So, yup. The market has definitely gone quiet at the moment.

Regards,

Daniel Lee

 

[Deltaberry]

The market's bad? REALLY????

 

[pully]

we went to several opens on the weekend gawler and craigmore areas.
prices are dropping lots of stock has been sitting for months.
many are being offered as rentals or purchase whatever comes first.
at 2 opens we were told the properties were under contract but still having opens because the agents were not confident the terms of the contracts would be met.
contract failures were becoming more common they said.

of course opens at more attractive/well priced properties also gets purchases interest, the agent then tells the potential purchasers sorry under contract, but we have others that may suit you etc.
one is still being marketed for opens next week, but still under contract.

 

[lizzie]

Still quite a few quick sales around inner Newcastle ... but ... they have to be smick (either properly reno'd or absolutely nothing done) and priced right otherwise they just sit.

Anything a little so-so (half reno'd or to "ordinary" standard or overpriced) is sitting forever.

 

[Aaron Sice]

update for WA if you like?

my house has been on the market for 8 weeks with no bites. plenty of interested parties, but nothing - not even a stupid low offer.

what does that say?

 

[bluestorm]

my house has been on the market for 8 weeks with no bites. plenty of interested parties, but nothing - not even a stupid low offer.

what does that say?

It says what some of us have been saying for 6-12mths now. Australia is in for a property market correction. People are starting to realise this, and so are staying out of the market for the near future.

 

[Lamingtons]

Daniel - why did you sell to go back to the rental market. I think renting in that area is not much cheaper. Sorry to ask if you have financial troubles.

 

[pieman]

Local anecdote - market good
I've seen 3 auctions last week and the over 1.5m bayside market is suprisingly good. 1 auction I went to had 6 individual bidders. Still lots of money round chasing little stock so not all doom and gloom. As we know Melbourne has many different markets.
If you reckon people are not spending try getting your kids into the local private schools. (24k for yr12) they are FULL

 

[Aaron_C]

Local anecdote - market good
I've seen 3 auctions last week and the over 1.5m bayside market is suprisingly good. 1 auction I went to had 6 individual bidders. Still lots of money round chasing little stock so not all doom and gloom. As we know Melbourne has many different markets.
If you reckon people are not spending try getting your kids into the local private schools. (24k for yr12) they are FULL

Bayside eh? Not surprised. Although Brighton et al were hit hard a few years ago during GFC so maybe this is a return to normalcy?

 

[buzzlightyear]

This Albert Park property sold for $955k. Its been a while since I have been to an auction with so many people. Only two genuine bidders however. Spoke to the losing REA to secure the property to sell. He had valued at between $950k-1m.

However this Ascot Vale flat went to auction, passed in on a vendor's bid of $280k about a month back. Had put in a bid of $250k recently, but vendor will apparently only consider offers north of $290k. Would rent for $250-260 per week.

And this Abbotsford property was listed at $600-660k and sold for $725k. I would argue a pretty good price for the seller, although I susepct ~5% off from 12 month ago