Fire Sale

[geoffw]

It's almost started!

I've heard about pre-sale of properties in Duffy, ACT, which has been very badly damaged.

An agent has been approached already by two parties who were not insured, and who wish to sell their properties.

I'm not familiar with the suburb's values. But I do know that the value ranges a lot, from the streets which (used to) be next to the forest, with views, to those at the bottom- normal suburban streets.

But a check of properties onhttp:// www.allhomes.com.au shows houses ranging from $270K to 400K +

The agent did not know how to value these- there have not been sales of new land in the suburb for many years- the suburb, I guess, is 30+ years ago (I lived in that suburb in 1974, and it was established).

I believe he's intending to put the blocks on the market at $250K. The belief is, that, as a suburb of quite new houses (as it will be), the value will rise substantially.

I suspect that new houses in this climate will be more costlier than normal. But I'm posting this for information.

btw, I know of two familes in the suburb who have had houses destroyed- and others who have not.

I'm posting for information about what is going on, not as a "chance" to find a "motivated seller". Indeed, the agent believes there will be a lot more motivated buyers than sellers- when it does go on the market.

 

[asy]

How interesting...

I wonder how the fires will affect the median house price in the area.

Will the price go down because ppl are afraid of the fires now?

Will the price go down because the suburb is unsightly with all the burnt homes?

Will the prices go up because there are fewer houses overall thus the demand will outstrip the supply?

Interesting. Don't misunderstand me, it's a horrible thing to have happened, but just being totally pragmatic, SOME market influence HAS to be felt, it will be interesting to see which way it goes.

We have had reports on the news and radio here that landlords in CBR are now doubling rent due to the flood of 'renters' now in the market. I think this is appauling, but also find it interesting from a social point of view.

Geoff, would you mind commenting on whether you have heard anything about the rental situation in CBR?

What do others think on what effect this will have on prices?

asy h

 

[yeslist]

Hi All
I hold a number of rentals in that area and yes there is a demand for rental accomodation in both short and long term. There is constantly a short supply of quality rentals in Weston creek because of the high rate of owner occupiers in this very desirable area.
I believe that only the desperate and the stupid will let go of these prime pieces of realestate.
I heard reports of some people offering 10% more than the insurance payouts to under insured victims of the devistation ,so, the land still is not cheap.
Y

 

[Mr Ed]

Hi all,

GeoffW & Asy I’ve been thinking about this as well. We have a 3 beddie in one of the streets that was hit and I’ve been mulling it over in my head as to what will happen to the suburb.

One has to be careful what one says here because of the sensitivity of the issue however I’m not planning on selling, nor buying any more property in the suburb for the minute.(just thought I’d get that off my chest early)

Firstly it is an established suburb 1972 / 73 so, 30 years on it’s leafy and the like, owner occupiers are the main residents (there are a few Govt home there as well but more on them in the minute). I believe that most will want to stay in the suburb so will rebuild. I can’t see many people saying stuff this we’re outer here, it’s genuinely a nice suburb, well positioned in the Woden valley good access to Hindmarsh Drv (Longest Rd in the Act it splits the ACT in half) and it has a good aspect to boot.

Also being that most are owner-occupiers they should have insurance. When they do rebuild they will want something better than what they had (human nature). The blocks along Eucembine Drv (backs the pine plantation) and the ones below Tallaroop and others are elevated & have good views and are basically 400k + homes they too I think will rebuild despite the Forrest behind and build sometime bigger and better.

The commission homes that were destroyed I think that ACT Housing will auction off the blocks because if you think about it. If they can get 200k for the block they can take that money add 30k to it and get a house & land further out. Whereas if they rebuilt on the site they will have to invest 150k p/site for a new home so I think they will off load the blocks.

So with 200+ new homes going into the suburb and them all being a newer style of homes with new landscaping, I think you’ll see the suburbs median price go up and also the popularity of the suburb as well. Just on pricing our little 3beddie (ex Govy) in Oct ’01 was worth 160k and now a home of the same sold in our street 3 months ago for 245k unrenovated. Ours is reno’d and landscaped we believe worth 275k. Nice gain…

Asy you said… Will the price go down because ppl are afraid of the fires now?

I don’t think so because this Canberra place is a funny place you could stub your toe and I’m sure if you looked, you’d find a support group for stubbed toes. The Govt are setting up a task force on fire / bush management and from that you won’t have pine plantations up against suburbs any more, and they’ll implement all sorts of things to reduce the chance of this happening again that’s what govt’s do govern and they do plenty of it in the ACT be it good or bad.

The pine plantations that were destroyed in Xmas ’01 have all been chipped and land cleared, this will happen behind Duffy as well so taking the fire hazard away. And they will have pressure not to replant, so I don’t think this will pose as an objection to someone wanting to live in the suburb.

I think we’ll see builders and tradies come in from SYD & the like as our builders are already booked 6-12 months in advance and this is all additional work. I think you’ll see construction costs increase as Builders are being paid from insurance money.

So if they charge more for the construction and there are 500+ homes to be built in the ACT will this push up the overall prices some more ???

Some house insurance policy’s cover you for rent whilst your place is being built so I can see rents increasing. (You can only live with the inlaws for so long…. 3 days!!!!)

All in all I think it will have a positive effect on the business community, new cars, furniture, Manchester, building, etc etc.

A long post I know but there are some interesting things going to happen and we will all watch with interest over the coming 24 months

Ed

PS just got off the ph from Elders woden and she was saying that they have been inundated with rental requests. Funny thing she said was that one person just wanted to rent for a 4 – 6 weeks while their place is rebuilt. I can’t see this suburb being rebuilt under 2 years. And anyway I think you’d be better to rent for 2 – 2 ½ years and then look at rebuilding when the builders are starting to run short on work. You’d get a better rental lease (price wise) and better construction price. Possibly???

 

[simonjulie]

Hi all

I sure demand in Weston Creek suburbs like Duffy, Chapman, Holder and Weston will remain strong as with many other suburbs on Canberra's nature belts. I think prices and rents will rise along with demand.

I live in Weston Creek and the people I have spoken to who have lost their homes all want to stay because they love the area. I have friends whose homes were on prime land - large blocks in Chapman, north facing on a hill overlooking the mountains and city - I perceive the land is just as valuable today as it was last week - if not more so - and they still own the land even though the house is gone. As Mr Ed said - they will probably build something even bigger and better and add even more value to the area.

Julie M

 

[Mr Ed]

Julie,

Drove past your new acquisition in McGuinnes Street Weston the other day (nice one) what are going to do with it reno or leave as is. I’m getting 285 per week for an ex Govy in Duffy, what do you think you’ll get there. Prime location good views “cheap buy”. You should see some good growth too.

Ed.

 

[simonjulie]

Mr Ed
We have bought the house for a family member to occupy but as you say its in a good position and the growth should be strong.
If you're bored on the weekend you can come and help us paint!
JM

 

[geoffw]

Latest word is that some Duffy blocks are getting offers at $280K to $300K (For the best blocks) - and there is a huge demand for them- there are waiting lists of people wanting to buy.

Smaller or viewless start over $200K.

The description was "going like hotcakes"- perhaps not the best choice of words.