Mortgagee Sales on the increase ?

Sim

Administrator
I just found that in The Advertiser newspaper (Adelaide) this Saturday, Toop and Toop real estate agents will have listings for 4 mortgagee sales.

Prices estimates given are $250K, $500K, $800K and $850K ... looks like there are some people out there who overcommitted themselves - even at the top end of town !

Interestingly, one of the properties is three dwellings on one title in Kent Town "3 properties on the one title fronting both Flinders Street and Little Wakefield Street" - partly renovated character residence, plus two executive modern townhouses.

Someone took on a bit more than they could chew ? Or maybe a DDD victim ? No-one amongst our forum family I hope.

(PS. I'm not suggesting that these properties are good deals - just commenting on the fact that they are there !)

For the curious: http://www.toop.com.au/
 
The Daily Telegraph was also stating that fire sales are starting to occur more often in the Sydney market. though they did say that they were mainly in the unit market at the moment.

I think there are some people out there really starting to hurt from the low yields and high vacancies, especially in the Sydney market.

What will the next few months have is store for us????

Cheers
Robert
 
G'day Sim & All

Sim you may recall a thread going last year about Adelaide properties and more particularly ex trust homes Toop & Toop were auctioning off ie: Edwardstown / Mitchell Park....pair of maisonettes??

I went on to mention that they put low ball indicative pricings in the add, say 12OK and ended up most bidders dropped out at 145K and it ended up in a slug-fest between two people and closed out at 176K.

Will be intersesting to see if the same hype driven buying madness will prevail at these rounds of auctions now twelve months down the track.

Otherwise I totally concur with your thoughts on the ridiculous over committment people have made....for whatever reasons!

Cheers Ian
 
Hi Ian,

I suspect you are correct about what the outcome might be - there are plenty of people out there still hyped about property - despite the doom and gloom propogated by the media.

The properties on offer certainly look very nice - although $850K is a heckuva lotta money for Adelaide - it will be interesting to see what sort of activity is still happening at that end of the market.

Although there seems to be a brisk trade in those apartments in the new developments at Glenelg - with most of them selling in excess of $1.5m.
 
G'day F.P., Sim & All

Care to elaborate F.P.?

Not quite sure what else might drive a property to be placed as 'Mortgaee in Possesion'. (Redundancies - loss of income, or if a multi development, perhaps lack of anticipated funds from sales).

If your information is of a private nature then it is your prerogative not to post any detail.....but it would aid the discussion.

Cheers Ian:)
 
G'day Again F.P. & All

Thanks for your reply F.P., your privacy is absolutely respected!

I'm always keen to have discussion on Adelaide property as it doesn't tend to crop up on the forum that often.

I would be interested in your thoughts on the current state of the city fringe: Halifax St, East Tce, Sth/East corner and perhaps even the Gilbert / Wright Streets areas in terms of smaller boutique terrace & townhouse type developments. Last I was in Adelaide there appeared to be quite a few of these coming onto the market.

These were interspersed with larger high density apartment style complexes that appeared to me to be in abundance and not selling/renting that quickly ie: the East End, Brewery, Embassy and other high density developments.

I note there is a lot of activity in apartments down Glenelg with more construction planned or underway (seems to be a high turnover of these currently).

I've also noticed more duplex / homette style projects occurring through the beachside suburbs, particularly Somerton Park through to Seacliffe. These don't tend to stay on the market for too long and appear to pull good money.....over inflated?...maybe, but they keep selling.

Whether it is the city, or the sea, it will be interesting to see how supply and demand drives Adelaide property over the next couple of years (without even giving due consideration to possible financial / economical circumstance changing nationally).

Cheers Ian
 
Might be time to start keeping an eye out for that perfect little inner-city pad to live in sometime in the future - especially if people are becoming disinterested in buying property - and if you can afford to deal with the potential vacancies while you're renting it out.
 
Under what circumstances would the mortgagee step in to sell the property?

If I were overcommitted and so no longer able to support the property, I would sell it privately (maybe with assistance of real estate agent), and just return what I owe the bank out of the proceeds.
 
Dear Desto,

What happens if?
-The property is owned in a partnership and one party doesn't want to sell? (E.g. continued argument in a divorce situation.)
-The vendor has an unrealistic sales price on the property and so it doesn't sell?
-The vendor purchased the property originally at a price well above it's true value and has not had time to build up equity? Therefore realistic sales price would not be enough to cover remainder on the mortgage and cover agents commission.
-The property actually went dramatically down in value because of a negative public development beside the property? Eg. the discovery of toxic waste coming up after building on a old rubbish tip.

Default clauses are in all mortgage contracts. Initially a notice is issued telling you that you are in default. This notice tells you that you are required to fix the default within the period stated in the notice. Where the notice is given under consumer credit law you then have at least 30 days to fix the default. If you don't fix the default within the time frame listed on the notice the mortgagee can then take possession of the property and then arrange for the property to be sold to be "fairly" sold through an agent.

See Asy's great post on foreclosures for more info.

Cheers,

Sunstone.
 
G'day F.P.

Thanks for the feedback, appreciated!

Full of s..t? I don't think so.

I concur with your thoughts on the current, and indeed future development prospects for Adelaide city. It is really only a matter of time before available land is gone and once again a matter of time before capital growth kicks in, but that is something of a property generalisation. How long?....that also remains to be seen.

Your reference to smaller developments is very much common sense, particularly if you can afford to finance involvement with something unique and of quality.

I get the impression that the south/west precinct of the city will remain the poor cousin to the east end for some time due to it's positioning and current environs. From very much a personal point of view it lacks some of the appeal of the more established east end....but this will change in time also.

Perhaps the currently underdeveloped s/w corner could be the place to consider for medium term gains? Whether as a developer, or simply a purchaser of the end product.

Thanks for your input!

Cheers Ian
 
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