$330,000 New Apartment sells for $62.92!!

Regardless, to me this is more of a lotto then a clever way to buy property or anything like that. I wonder if the buyer borrowed 100% or not.
 
kissfan said:
Not quite.

Saw the article on tv the other day, and apparently they actually lost money on this deal.
Click to expand...

I thought the bids cost $5 each in an 'admin' fee meaning at 80,000 people bidding just once they sold the property for $400,000 - $70,000 over market value.

Would they have spent more than $70k in advertising and admin?
 
Very smart tactic...just another way of marketing :)
I am sure the company must have made some money out of this deal.
 
Reminds me of a story probably ten years ago about a couple in WA who could not get on the property ladder as the banks would not lend to them for some reason, probably payback ability.

Anyway, they put adverts in newspapers (probably Australia wide - not sure) and asked for people to send him $1. He promised that one day he would repay everyone. He got enough to buy a house, but if he did repay everyone, then what a cost to him ultimately, seeing that a stamp probably cost 40c back then.

So he was effectively paying $1.40 for the $1 he received.

Wonder how he went?

Wylie
 
Sounds like that dude who swapped a paper clip for a house (with a few intermediate steps). Occasionally stuff like this happens, bit I wouldn't be counting on it happening to yourself.
 
Firsthomelooker said:
I thought the bids cost $5 each in an 'admin' fee meaning at 80,000 people bidding just once they sold the property for $400,000 - $70,000 over market value.

Would they have spent more than $70k in advertising and admin?
Click to expand...
Not too sure of exact figures (or what the papers reoprted), can recall the owner saying that they lost on this deal but that hopefully future deals deals will be more successful once these type of 'sales' are more accepted.
 
It's set up in such a way that they can't lose...the auction will not end until the required amout of bids is reached...for example the holden ute is worth $52,000, and there is 12500 available bids at $10 each = $125,000
thay make a killing each time other wise they wouldnt do it!
 
boods99 said:
It's set up in such a way that they can't lose...the auction will not end until the required amout of bids is reached...for example the holden ute is worth $52,000, and there is 12500 available bids at $10 each = $125,000
thay make a killing each time other wise they wouldnt do it!
Click to expand...
Great first post boods
Exactly right... they will tell you anything... you might as well play the pokies
Steve
 
I think it depends on how you look at it. If they are planning on doubling their money on each lot they sell, but only covered their costs plus a small "admin fee" for the house, they could perceive they have lost money as they have, in effect, lost out on the extra revenue they would have made if it was another item they were selling.
 
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