Skater,
Using Western Sydney as an example
In doing the re-val, won't these purchases have the greatest influence? i.e. the real value is what has just been paid..
Further to that, unless FHO's are doing no research at all, they'll see these recent sales come up and be crazy to offer anything more.
Three in a row does not mean that there is not value there my friend. Mine was bought around 8 years ago, so of course the purchase price is going to be low. Nath's one was a "special case" that he was able to grab. I would have done the same if all my ducks were lined up in a row and I was able to finance it. (Hey Rolf if you're listening, how are we going?) I am not sure about his mate.
The point is, that if you get them straight off of the Department, do a minor spruce up (no, not a Nathan special, although some do need that too, but then the price reflects that), then they will reval at a similar price as the market in general. Western Sydney really has a kind of two tier thing going on and it is only due to the Department sell offs. These are not seen by the FHOs or many of the public because they usually think that auctions are scarey AND many are purchasing the already 'nice' properties.
My own daughter is a victim of this too. When looking at something that is grotty (needs a paint only) she will often shy away and tell me that there is no way she could live there.