Closed the deal for a new PPOR today - paid $235k less than the previous owner bought it for.
We have major renos coming up, then moving in - can't wait!
We have major renos coming up, then moving in - can't wait!
New Home - Celebrating
- Thread starter VYBerlinaV8
- Start date
Closed the deal for a new PPOR today - paid $235k less than the previous owner bought it for.
We have major renos coming up, then moving in - can't wait!
Notice
Ta
Rolf
congratulations
Thanks for the kind thoughts, all!
Congratulations, well done !
Closed the deal for a new PPOR today - paid $235k less than the previous owner bought it for.
We have major renos coming up, then moving in - can't wait!
Jeez, how do you lose that sort of dough and where is it ...roughly?
Not necessarily.
I've seen many a house sold for a ridiculous price. When you look closer you notice the names are similar or it is a trust etc. Could be a transfer to themselves but in a different entity.
Berlina could fill us in.
he didnt mention that 235k is only a 0.5% drop
Congrats mate
Congrats mate
It's the risk with property. We all know that. Like any investment.
To blindly buy into the whole it will only ever go up mantra is asking for issues down the line, especially if you over extend yourself.
I'm a fan of prudent and responsible investment. Not borrow every last cent you can.
I'm not saying it's a good thing. But like someone blowing that kind of dough on the stock exchange, it is a risk.
I think your concern is an admirable quality but the thought does occur to me that if V8 had not paid what he did, then someone else would have bought it for even less.
A lot of people are taking a loss then buying another PPOR at a discount, so they're probably in no different a position to having held - or are like many here who bought property from 2007 but have not realised a loss because they haven't sold.
Infact if they buy a more expensive PPOR with a bigger discount than they gave, they're in a better position than before.
I know some selling now to upgrade, with one couple having dropped the price 100K (and still no bites), but plan on buying a much better home.
Also a 235K loss can be just as painful for one person, as a 50K loss is to another.
That said, I do see where you're coming from BV; I also feel for anyone suffering a loss that has a significant impact on them, although I'm inclined to think there has been an even greater loss elsewhere that leads a person that can't afford a loss, to sell, ie. divorce, business downturn.
Congratulations VYB. Hope you enjoy your new home.
Infact if they buy a more expensive PPOR with a bigger discount than they gave, they're in a better position than before.
I know some selling now to upgrade, with one couple having dropped the price 100K (and still no bites), but plan on buying a much better home.
Also a 235K loss can be just as painful for one person, as a 50K loss is to another.
That said, I do see where you're coming from BV; I also feel for anyone suffering a loss that has a significant impact on them, although I'm inclined to think there has been an even greater loss elsewhere that leads a person that can't afford a loss, to sell, ie. divorce, business downturn.
Congratulations VYB. Hope you enjoy your new home.
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Update time.
Firstly, thanks all for the kind wishes. It looks like we'll exchange the contracts on Friday provided the bank gives final all clear today (they were waiting on a valuation of my units in Queanbeyan).
The property is in Jerrabomberra. It's been on the market for several months now. Property at the higher end of the Jerra market is not moving well at the moment, and we tried putting in low offers on 2 other properties before getting a bite on this one. Other sellers were not interested in offers even 5% below asking price. Neither of the homes we put offers in have sold at this time.
In terms of the price, the owner had moved out around 6 months ago to be with family. He is a very wealthy individual, and after having the property passed in at auction last year, and then having no offers for several months decided to accept my (low) offer so he could get rid of the property and move on with his life. Losing the money has apparently annoyed him, but won't stop him buying a new Mercedes this year. In this case, it's his loss, my gain. When the agent asked me to make an offer I stated very clearly that for me to buy the place the value would have to be significantly less than asked, because the fittings and colour scheme were terrible. We saw other people walk through at the open house with looks of horror on their faces. If the owner had renovated the property to more neutral colours they would have achieved a much better price.
The property requires significant (I've estimated $110k) renovation, which includes 3 new bathrooms, new floor coverings, new lights, repainting, and a handful of other things. I think the main reason the house struggled to sell was because the current colour scheme and fittings are, frankly, terrible. We have bought the place on the basis of having to renovate to fix the problem.
So, now waiting for the bank to come back to me, and going to sign contracts tomorrow. We will actually be commencing our renovations after exchange, not settlement, so this weekend we'll go through with the builder and develop the detailed version of our list of things to get done.
Firstly, thanks all for the kind wishes. It looks like we'll exchange the contracts on Friday provided the bank gives final all clear today (they were waiting on a valuation of my units in Queanbeyan).
The property is in Jerrabomberra. It's been on the market for several months now. Property at the higher end of the Jerra market is not moving well at the moment, and we tried putting in low offers on 2 other properties before getting a bite on this one. Other sellers were not interested in offers even 5% below asking price. Neither of the homes we put offers in have sold at this time.
In terms of the price, the owner had moved out around 6 months ago to be with family. He is a very wealthy individual, and after having the property passed in at auction last year, and then having no offers for several months decided to accept my (low) offer so he could get rid of the property and move on with his life. Losing the money has apparently annoyed him, but won't stop him buying a new Mercedes this year. In this case, it's his loss, my gain. When the agent asked me to make an offer I stated very clearly that for me to buy the place the value would have to be significantly less than asked, because the fittings and colour scheme were terrible. We saw other people walk through at the open house with looks of horror on their faces. If the owner had renovated the property to more neutral colours they would have achieved a much better price.
The property requires significant (I've estimated $110k) renovation, which includes 3 new bathrooms, new floor coverings, new lights, repainting, and a handful of other things. I think the main reason the house struggled to sell was because the current colour scheme and fittings are, frankly, terrible. We have bought the place on the basis of having to renovate to fix the problem.
So, now waiting for the bank to come back to me, and going to sign contracts tomorrow. We will actually be commencing our renovations after exchange, not settlement, so this weekend we'll go through with the builder and develop the detailed version of our list of things to get done.
Congratulations, sounds like a bargain.
I'm surprised that the owner didn't renovate the place. I suspect that either he felt the time could be better used elsewhere, or that there were enough risks inherent in committing to a six figure update in an uncertain market that the best strategy was to cut and run.
(I believe that knowing when to quit early is one of the hallmarks of a successful businessman.)
Besides, if he's held the property for some years then he'll have made enough capital gains to come out ahead at the final count.
I'm surprised that the owner didn't renovate the place. I suspect that either he felt the time could be better used elsewhere, or that there were enough risks inherent in committing to a six figure update in an uncertain market that the best strategy was to cut and run.
(I believe that knowing when to quit early is one of the hallmarks of a successful businessman.)
Besides, if he's held the property for some years then he'll have made enough capital gains to come out ahead at the final count.
It being owner occupied before sale makes me suspect the previous owner had some 'interesting' ideas about interior decoration.
That's a very accurate, and diplomatic way of putting it.
Well after lots of hiccups and hassles we are finally exchanging on this property today. The bank decided we had too much debt and reduced some of our LVRs, but we managed to work our way through it, and I've just done the final inspection.
It will exchange in the next hour or so, and renovations start this weekend!
It will exchange in the next hour or so, and renovations start this weekend!
