Is this calculation/assessment correct ?

[HeadHunter]

Hi everyone, first time poster, however been reading this forum a long time and learned quite a bit and trying to put that to use.

So after reading quite a few posts on how to find the true value of a property, I have done some research and this is what I came up with.

This unit is listed at 210K. Bank can give me more but my personal limit is 250K. I havent been to the place yet, just doing research but plan go do an inspection this weekend.

Spec for the unit:
Bedrooms: 3
Bathrooms: 1
carport: 1
Aircon in bedroom

it last sold for $30,000 in 2000

findmeahome reports it to be worth $205k to $215k

Refind gives this info:
Jan 2011 listed for $199,000
May 2008 listed for $219,000
Apr 2008 listed for $219,000


A similar unit will rent for 260$/week in that area.
Body corp is 1200$/year
could not get the strate fees... where do I get this ?

a similar unit sold for 180K in Feb 2011.

The average rental yeield for this area for units with price of $210,000 with a weekly rent of $255 is 6.31%


I rate this unit at 170K and wont go over 180K...

Is my aproach correct ? Can I further refine it ?
many thanx.

 

[Rolf Latham]

Hiya

If the findme a home reckons its woth 205 and the ask is 210, the chance of the actual market price being 170 is small, very small

Obviously you need to price your purchase before you make an offer, and the best way is with comparables in the current market.

You really need more than one comp to get a better guide, otherwise you could be forever chasing something that wont sell at your expectation

ta
rolf

 

[HeadHunter]

Hiya

If the findme a home reckons its woth 205 and the ask is 210, the chance of the actual market price being 170 is small, very small

Obviously you need to price your purchase before you make an offer, and the best way is with comparables in the current market.

You really need more than one comp to get a better guide, otherwise you could be forever chasing something that wont sell at your expectation

ta
rolf

thanx for that Rolf. So findme a home is pretty much on the ballpark ?

 

[vaughan]

thanx for that Rolf. So findme a home is pretty much on the ballpark ?

Don't rely on any one source of information. Get actual sales data for comparable houses in the area and work it out yourself.

 

[HeadHunter]

Don't rely on any one source of information. Get actual sales data for comparable houses in the area and work it out yourself.

good point, so I should buy one years worth of sales data of this suburb and look for similar properties ? right ? which is the reliable place to buy one ?

thanx everyone. sooooooo much to learn...

 

[vaughan]

good point, so I should buy one years worth of sales data of this suburb and look for similar properties ? right ? which is the reliable place to buy one ?

thanx everyone. sooooooo much to learn...

That would be good. Also look at current properties listed and talk to agents in the area to get a feel for how the market is.

You also need to know how the area has performed in the last 10 years. For instance, some areas in Sydney at the moment are just getting back to the 2003 values. You need to have a feeling whether you're buying now at a peak or a trough.

 

[HeadHunter]

Went to look at the property today. The owner had some renovation guys doing up the place by putting new tiles in. They had already painted the walls etc.

I threw in the price of 180K to 190K and the REA wasent keen at all. I dont think we will get a call back.. lets see.. There are always other fish in the pond

There are newer apartments close by and are around 300k in price.

Called up a few REA guys and according to them most of the properties that are being sold are going for a loss to the owner specially the ones that were bought in the last 3 to 5 years.

 

[HeadHunter]

Went to look at the property today. The owner had some renovation guys doing up the place by putting new tiles in. They had already painted the walls etc.

I threw in the price of 180K to 190K and the REA wasent keen at all. I dont think we will get a call back.. lets see.. There are always other fish in the pond

There are newer apartments close by and are around 300k in price.

Called up a few REA guys and according to them most of the properties that are being sold are going for a loss to the owner specially the ones that were bought in the last 3 to 5 years.

Got the call from agent to put my offer in an email. I wonder why in an email ??

 

[Scott No Mates]

An email or fax because it is in writing. There is some proof of the offer and the conditions which you may have attached/discussed.

 

[HeadHunter]

An email or fax because it is in writing. There is some proof of the offer and the conditions which you may have attached/discussed.

So is that email legally binding on both the vendor and buyer ? I mean should I put in the subject to.... conditions along with the price ?