Melbourne Boom...Take 2!
- Thread starter JIT
- Start date
Wrong strategy....you would lose money that way. 615m2 would get you 3 2 bedders. Anything over 700m2 would get you 4 2 bedders. Good money then, especially if you are a builder.
The one up the road from me went for $531k last weekend at Reservoir. The old folk, presumably living in the suburb for decades, couldn't believe it. But they generally have the same reaction all the time anyway. The one up the road the previous week went for $667k - done up nicely. Lat month saw one go for $930k!
Good money then, especially if you are a builder.
I reckon you'd still be struggling to make money on this $555K purchase, even as a builder. But, if you reckon it can be done(I'm assuming you're a builder), I take my hat off to you.
It's not just the old's that can't believe it, I think most people are freaking out over the latest boom sweeping Melbourne and it appears to be right across the board, not just Reservoir or Frankston.
$555k for 3 unit site wont work as well that's for sure, especially if you pay builders margin. In the first few months of the year prices went up by $50k but the kicker was that units went up by $50k as well. 3 x $50k = $150k. You would have to reassess the figures again now.
This would be the last upswing in prices IMO. This stage of the cycle is the maddest one. I wouldn't buy now that's for sure. But that's another debate.
I can't see these prices being sustainable. I'm selling my house in 3 weeks and hoping to buy back in the area one day with the purpose of knocking down to build a nice PPR. I think prices will adjust downwards mid next year due to interest rate rises and the removal of FHBG.
Out of curiosity what do you guys think my house will fetch at auction? The agent has given me a range but I'm interested to see what other's think.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007953173
Thanks!
Out of curiosity what do you guys think my house will fetch at auction? The agent has given me a range but I'm interested to see what other's think.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007953173
Thanks!
Dunno - do you have a link to the Kensington house? Thats an amazing result.
Hi Vuster
I was going to ask someone about oakleigh.
I reckon your house unrenovated could have been bought 7 years ago for 200k.
I think you have done 100k reno.
But I think you might get 650-680k?
I could be completely wrong though!
I was going to ask someone about oakleigh.
I reckon your house unrenovated could have been bought 7 years ago for 200k.
I think you have done 100k reno.
But I think you might get 650-680k?
I could be completely wrong though!
http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=54035218&s=vic&tm=1250129276
The bidders were on drugs-first time I have seen two bidders just loose all sense of reality and go for it-seriously everyone was just shaking their head in amazment!!
Id hate to be in their position when the ole 'buyers remorse' hits and they start to realise what else and where else they could have bought for what will effectively cost them $710k (to get rentable...) crazy....
Throw into account also total costs would be approaching $750k with stamps and legals for something that will only get $430 odd rent.....god knows what they were thinking.....hope it was simply a case of being in love with what will be a PPOR...
Seen some high prices in Richmond as well.
I was at the auction for this one on Saturday, went for $975k
http://www.bigginscott.com.au/index...&propertyID=1123536&propertyStatus=SoldRented
A pretty tired old house but a large block (for Richmond) about 300sqm and 2 street frontages, so I guess 4 townhouses?
The bidders were definately of the re-developer type.
Interestingly though: There were a few passed-in on the weekend, properties that I thought would get snapped-up. I've yet to find out the reasons but maybe there are holes appearing?
The logic of waiting for the FHBs to step aside sounds good, but I can't help thinking there are plenty of investors waiting at the sidelines that will negate any effect from the FHBs leaving?
I was at the auction for this one on Saturday, went for $975k
http://www.bigginscott.com.au/index...&propertyID=1123536&propertyStatus=SoldRented
A pretty tired old house but a large block (for Richmond) about 300sqm and 2 street frontages, so I guess 4 townhouses?
The bidders were definately of the re-developer type.
Interestingly though: There were a few passed-in on the weekend, properties that I thought would get snapped-up. I've yet to find out the reasons but maybe there are holes appearing?
The logic of waiting for the FHBs to step aside sounds good, but I can't help thinking there are plenty of investors waiting at the sidelines that will negate any effect from the FHBs leaving?
That is huge result for richmond aswell - any idea the qtd range or at what price she was on the market?
You would definitely struggle to get 4 townhouses on that - 2 max. That is around $500k per unit site. You would need the new townhouses to fetch well over $1m each to make the exercise worthwhile. IMO, this isn't an unexpected result. Its location is fantastic.
No, not unexpected, I predicted it would be close to 1M.
The quoted range was, I believe $750 - $800.
I don't know what the reserve was because the auction flowed pretty smoothly.
I've seen a few auction results recently where they were passed in and the reserve was quoted, and the reserve was higher than the upper limit of the EPR!! How can they quote an EPR which the reserve doesn't even encompass the reserve. The agents are laying themselves open if they're doing that.
This auction result is interesting because a few months ago you wouldn't have got anywhere near that.
The quoted range was, I believe $750 - $800.
I don't know what the reserve was because the auction flowed pretty smoothly.
I've seen a few auction results recently where they were passed in and the reserve was quoted, and the reserve was higher than the upper limit of the EPR!! How can they quote an EPR which the reserve doesn't even encompass the reserve. The agents are laying themselves open if they're doing that.
This auction result is interesting because a few months ago you wouldn't have got anywhere near that.
Hmmm, I will take a punt and the agent said a range 570 - 590.
Out of interest, is there a reason your not putting a range on the website?
How are you finding Raywhite Oakleigh as the selling agents?
I see that type of stuff every weekend. What is really amusing is the claims that underquoting doesnt exist, yet I can, and I bet you can too, estimate the sale price of a auctioned property to within $15k, yet the agents are always UNDER by at least 20%, or $80-$100k. Tell me how we would have a better idea of what a property will sell for than 'professionals' that live eat and breath auctions?
Its funny-a couple of times I have played a game of cat and mouse, offering prior to auction prices $30k over the quoted range just to see them squirm and come up with some excuse why it wont be accepted.....
This happened in McKinnon on the weekend, place on Exhibition ST was quoted at 570 - 630, passed in at 642 (paper on Monday had it sold at 650). Lets just say the agent wasn't getting any favourable comments. I am not sure of teh situation, but can only assume the seller changed the reserve price prior to auction.
You are close, but the range given to me was a bit higher than that. It's too soon for me to comment on how I am finding dealing with Ray White Oakleigh. I'll be in a better position to comment once auction day has come.
It wasn't my choice to not put a price range on my property. I have noticed that properties that they have advertised have no price range.
Jellis Craig are another REA who are now not quoting prices. This is in response to the ACCC warning about underquoting.
I wish you were right. I can't see myself getting that unless I get bidders like those that attended the Reservoir auction on the weekend.
I believe 7 years ago the median for the area was around 300K. I bought this place about 8.5 years ago for over 200K.
