From: Mike .
Hi All,
Today I attended an auction of a Deceased Estate in my area of North Ryde.
The RE mailout had the usual colour photos and plenty of RE hype, eg, set in popular...this much loved...perfect start for young family...plenty of potential...walk to...handy to...etc. Now, the most telling words were "Deceased Estate - WILL BE SOLD".
It's a free standing 3br cottage, it's clad fibro with permaclad or permanclad?, tile roof, small bathroom (original), modern kitchen (ie renovated), 3 good size bedrooms, house is approx 14 squares, block size is 560 sqm, Blenheim Rd has lots of thru traffic and a bus route. Has established lawn and basic garden, ie, perimeter shrubs and small trees.
The flyer says bidding from $270,000, however, agent says interest already shown at $290,000 and will probably go off in low 300's.
I don't see many of these so I thought I'd go along to observe the auction and see whether it goes off at a discount as some would have us believe.
Bear in mind, that in the last 3 years, the average growth rate for houses in North Ryde was approx 7.3%. The projected average annual growth rate over the next three year period is approx 10.38%. Bear in mind, also, that historically, North Ryde's average growth rate has been slightly under the average for the whole of Sydney.
The median sale price in the North Ryde area last year was $381,000 and the median rental yield last year was 4.61%. So, based on that data, we can say that North Ryde is not an unpopular suburb. So should we expect to find a bargain here? Remember, the property is meant to be on the market from the first bid. (At the auction, during the bidding, I saw the auctioneer ask the agent whether the property was now on the market. Strange, since there shouldn't have been a reserve.)
At the auction I estimate a crowd of about 60 people standing around the front lawn in light rain. Nobody would start the bidding so the auctioneer asked the agent for an opening bid. It was $300K! So, the agency's initial estimates were just a ploy to attract bargain-hunters. I believe it's called low-balling. Now, do something for me, take a deep breath and hold it for as long as you can. That's how long the rest of the auction was. In quick succession, the remaining bids were, 320, 330, 340, 350, 360, 370, 375. All done, sold! No arm twisting was seen at this auction. As the crowd dispersed I overheard the Agent remark that he neither expected the bidding to go that quickly or that high.
So what conclusions can we draw from that about "D" sales. Obviously, you won't find a bargain in popular, good growth suburbs. Remember folks, we ARE meant to be on the verge of a recession! What's North Ryde going to be like when the good times roll around?
Regards, Mike
Hi All,
Today I attended an auction of a Deceased Estate in my area of North Ryde.
The RE mailout had the usual colour photos and plenty of RE hype, eg, set in popular...this much loved...perfect start for young family...plenty of potential...walk to...handy to...etc. Now, the most telling words were "Deceased Estate - WILL BE SOLD".
It's a free standing 3br cottage, it's clad fibro with permaclad or permanclad?, tile roof, small bathroom (original), modern kitchen (ie renovated), 3 good size bedrooms, house is approx 14 squares, block size is 560 sqm, Blenheim Rd has lots of thru traffic and a bus route. Has established lawn and basic garden, ie, perimeter shrubs and small trees.
The flyer says bidding from $270,000, however, agent says interest already shown at $290,000 and will probably go off in low 300's.
I don't see many of these so I thought I'd go along to observe the auction and see whether it goes off at a discount as some would have us believe.
Bear in mind, that in the last 3 years, the average growth rate for houses in North Ryde was approx 7.3%. The projected average annual growth rate over the next three year period is approx 10.38%. Bear in mind, also, that historically, North Ryde's average growth rate has been slightly under the average for the whole of Sydney.
The median sale price in the North Ryde area last year was $381,000 and the median rental yield last year was 4.61%. So, based on that data, we can say that North Ryde is not an unpopular suburb. So should we expect to find a bargain here? Remember, the property is meant to be on the market from the first bid. (At the auction, during the bidding, I saw the auctioneer ask the agent whether the property was now on the market. Strange, since there shouldn't have been a reserve.)
At the auction I estimate a crowd of about 60 people standing around the front lawn in light rain. Nobody would start the bidding so the auctioneer asked the agent for an opening bid. It was $300K! So, the agency's initial estimates were just a ploy to attract bargain-hunters. I believe it's called low-balling. Now, do something for me, take a deep breath and hold it for as long as you can. That's how long the rest of the auction was. In quick succession, the remaining bids were, 320, 330, 340, 350, 360, 370, 375. All done, sold! No arm twisting was seen at this auction. As the crowd dispersed I overheard the Agent remark that he neither expected the bidding to go that quickly or that high.
So what conclusions can we draw from that about "D" sales. Obviously, you won't find a bargain in popular, good growth suburbs. Remember folks, we ARE meant to be on the verge of a recession! What's North Ryde going to be like when the good times roll around?
Regards, Mike
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