sh*t - i was planning on picking something up in Broadmeadows as well......stupid banks
Hi Blue Card
I don't think its too late, just try to get 700 sqm2 block.
Cheers, MTR
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sh*t - i was planning on picking something up in Broadmeadows as well......stupid banks
The key in this sort of market is to find gems, not get carried away by emotional bidding etc. While I don't see downside risk at this stage, if downside does materialise (since the economy is still very cloudy ahead), it's the people who get sucked into the sort of auctions you talk about that will have the most problems. It's the same as the stock market boom before - the key is not to get carried away and keep bidding the prices up just because there's someone else out there bidding.
There're a few good places I've seen that barely attracted 10 people on auction day and subsequently passed in. I've known 2 people recently to buy below reserve price at good spots in inner city Melbourne after passing in. And yes I do mean inner city literally, such as Carlton and Richmond.
Buzz - you are not pokey prejudiced are you? How would you like it if I called ypour house a soleless, enviro terrible MacMansion...
(im just bating........)
I like what I am reading on this thread.
I am getting back posession of a 2 bed Victorian SF terrace IP in Fitzroy North, on Brunswick St, just above Alexandria Pde, 2.8kms from the city on a tram line, 1 km walk to Melb uni.
I am going to take a couple of weeks off and renovate it and hopefully put it to Auction just before Christmas.
I think I will get more for it that I thought I would .. the timing couldn't be better... hope the market holds.
cheers
RightValue
RV, what do you mean by renovate? I think you will get a better return by putting on the market unrenovated.
My friend always says if someone's willing to pay the price, then it's obviously worth it because everyone does their numbers. If someone here is willing to pay the price, hasn't that just validated it's value?
Sorry, but that one IS across the road from Housing Commission AND isn't just on a main road - it's probably smack bang on the busiest road north of the city. I've driven past that and the other Victorians along there truckloads (an apt term) of times and repeatedly wondered who the hell would want to live there, be they an owner occupier or tenant.
And if the tunnel from the Eastern to Citylink goes through, it could be right under that funny dunny out the back which may cause some consternation...
Underpriced at $565,000? I think not.
Two people that really love the place duke it out at auction; they take the place $200k above where bidders 3 and 4 dropped out.
The underbidder buys another property. The winning bidder can't get the finance.. the property goes to Auction again .. what is the probability that it will go for the same price again?
I was at an Auction in Camberwell Vic in late 2007 .. The property was a 2 bed 1970 original unit (1 0f 4) which was nearly passed in at $390k .. Then it majically reached the reserve of $400k - a price the vendor was prepared to sell and what I thought it was worth ... it sold 15 minutes later for $600k.
I doubt it would get that price today.
We use "a willing but not anxious buyer, a willing but not motivated vendor" as part of our definition of fair market value.
To use your friends definition.. if someone flies down to Melbourne from Sydney and thinks that a place is cheap in comparison to their home town and pays $100k more than the price 4 similar properties sold for in the area 3 weeks ago (because they found an honest agent they could trust); it is market value ..
Or worse people that buy investment properties interstate based solely on the figures.... from investment advisers .. pity they don't fly down and pay $50k less for second hand one year old comparable properties.
Hey it's market value to your friend to pay more for a new 145sqm house off the plan than the asking price of a a 160sqm 1 year old house .. but not to a valuer or to the lender.
I am sure your friend is not a lender but is a borrower....
cheers
RightValue
*snip* but the underlying point is still there...what is market value to him, may not be to you!
As long as you are buying with someone else's money, it matters not a jot what you thinks it's worth...if you're borrowing it only matters what the lender figures the next buyer might think it's worth if they have to take it off you.
Oh, and if you *really* have the extremely low opinion of valuers and their expertise that you have expressed in your response to RightValue, my experience is that you are more likely to be in the "getting things taken off you" category than the average.
Ah...so we are going to talk about valuers and valuation firms. Well, I used to work for Australia's largest independent strategic property consulting firm