Auction observations 13 Sept

[buzzlightyear]

Went to an auction to bid on behalf of a friend this Sat. 3 weeks ago they were going to accept $245k to purchase an unrenovated 2br flat in a block of four in Newport, but my friend's finances (and access to deposit monies) were still another week away from being finalised. Another one in the block had sold (and partially renovated) for $245k.

They decided to go to auction, and 2 keen bidders (actually it seemed as if it was an auction cockfight...can you say that ), took the price of to $267,500.

I have noticed in other locals as well, strong interest in these lower priced unrenovated old style flats.

 

[willair]

Went to the auction of a derelict house on 405m2 today (minimum block size). Expensive neighbourhood, across the road from a park, walking distance to public transit. Demolition Control Zone.

House was unliveable and only fit to be pulled down (severe termite damage etc etc). It will be necessary to maintain the frontage (including some nice leadlight front windows) due to DCP restrictions.

Council unimproved valuation $405k.

Houses in the area in reasonable condition sell for between $620k and $950k depending on size, attributes etc.

Big big crowd - 60+ people. At least 10 registered bidders. About 6 active bidders.

House sold for $470k at auction. I dunno but I just couldnt see the value in it - the margins seem razor thin.

Once you add up all the entry costs,and land value,seems to me to be value,just depends on the new owners skills and idea of what a period house will look like and end up like after the reno,not much you can do with a block like that shorterm,but longterm it woud be a different story,for any inner city blocks like that..imho..
willair

 

[evand]

I went to an auction on Saturday to a pretty nice 3br semi in Sydney's Inner West, (Marrickville) which is usually an active market. Even in down times it does pretty well.

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007332504

The auctioneer tried to kick off bidding at $600k, nothing. Then he tried at $580k, $570k, $560k......nothing.

The agent then phoned the vendor and started with a vendor bid of $550k. The auctioneer started his rant (like it was a real bid).

Anyway, complete silence followed.

Passed in vendor bid of $550k. 2-3 years ago, would be no trouble getting $620k+ for this place. Sign of the times, but surprising for Sydney's Inner west which as i said, is rarely lacking demand.

 

[crc_error]

If it is in a demolition control zone, it cannot be pulled down. Of course, you could just demolish it anyway, but the council may decide not to pass your building plans as a payback.

Maybe you can do a stock take and get some squatters into it and have them accidentally start a fire..

since your not claiming insurance, its not a case of fraud.. heck you can burn down your own house cant you? there is no law against that?

 

[ianvestor]

Went to the auction of a derelict house on 405m2 today (minimum block size). Expensive neighbourhood, across the road from a park, walking distance to public transit. Demolition Control Zone.

House was unliveable and only fit to be pulled down (severe termite damage etc etc). It will be necessary to maintain the frontage (including some nice leadlight front windows) due to DCP restrictions.

Council unimproved valuation $405k.

Houses in the area in reasonable condition sell for between $620k and $950k depending on size, attributes etc.

Big big crowd - 60+ people. At least 10 registered bidders. About 6 active bidders.

House sold for $470k at auction. I dunno but I just couldnt see the value in it - the margins seem razor thin.

Don't know the accuracy of this but I heard today that the buyer is friends with the owner of the house next door which has just been renovated by him and his friend.

(Heard from someone who lives a few houses away).

So in other words, he probably knows the market in the area very well going by figures on his friend's reno project.