Was talking to a builder today about the project they are doing. block of 16 units in one of the mel western suburbs. They told me with the ones they have already sold off the plan, the bank valuation came back at $30,000 more than the price their customers paid..
Asking price: $299,000
Bank valuation: $330,000
The purchase price on the contract is $330,000, and they gave $30,000 back to the buyer as cash rebate. They told me if I were to buy two, this would be $60,000 instant equity, which I don't necessarily disagree, however I don't think this self inflated market price of $330,000 will sustain in the long run. I mean , what if one of the owners decided to sell one of the units at the 'original' price that he/she paid ? i.e. $299,000 and that all of sudden kills the market ?
Other than that, the fundamentals look ok, it's in an established area, not many vacant lands around, it's close to all amenities.
I am fairly new into property investment, and would like to have your thoughts on this ?
Asking price: $299,000
Bank valuation: $330,000
The purchase price on the contract is $330,000, and they gave $30,000 back to the buyer as cash rebate. They told me if I were to buy two, this would be $60,000 instant equity, which I don't necessarily disagree, however I don't think this self inflated market price of $330,000 will sustain in the long run. I mean , what if one of the owners decided to sell one of the units at the 'original' price that he/she paid ? i.e. $299,000 and that all of sudden kills the market ?
Other than that, the fundamentals look ok, it's in an established area, not many vacant lands around, it's close to all amenities.
I am fairly new into property investment, and would like to have your thoughts on this ?