Hi All
about 4 months ago we attended an auction (property on the market again, after reno, see below). We were not successful.
http://www.realestate.com.au/property-house-wa-alexander+heights-112272619
RE agent advised that the sellers were close to losing their home, banks at their door steps etc etc. Not sure whether I believe this story.
The house was disgusting, fat on walls and just a complete mess, needed a new kitchen, bathroom, painting, carpets in bedrooms, window treatments and some other repairs, anyway we worked on around $20-25K. We decided to offer no more than $290-300K. The RE agent advised at the time that if renovated nicely we could achieve $380K. I see it is on sale for more $389-429K, perhaps this is due to the lack of stock in Perth ATM, (first home buyers market is reasonably strong).
On auction day it did not sell, but there was an interested party who paid I believe $345K, which I thought was way too much, when one considers reno costs, stamp duty, holding costs, agent fees, settlement costs and 50% CGT I really can not see how the buyers could make any money on this deal.
My point is really if there is not at least 20% in the deal probably best to walk and even our entry level may have been a little tight.
Cheers, MTR
about 4 months ago we attended an auction (property on the market again, after reno, see below). We were not successful.
http://www.realestate.com.au/property-house-wa-alexander+heights-112272619
RE agent advised that the sellers were close to losing their home, banks at their door steps etc etc. Not sure whether I believe this story.
The house was disgusting, fat on walls and just a complete mess, needed a new kitchen, bathroom, painting, carpets in bedrooms, window treatments and some other repairs, anyway we worked on around $20-25K. We decided to offer no more than $290-300K. The RE agent advised at the time that if renovated nicely we could achieve $380K. I see it is on sale for more $389-429K, perhaps this is due to the lack of stock in Perth ATM, (first home buyers market is reasonably strong).
On auction day it did not sell, but there was an interested party who paid I believe $345K, which I thought was way too much, when one considers reno costs, stamp duty, holding costs, agent fees, settlement costs and 50% CGT I really can not see how the buyers could make any money on this deal.
My point is really if there is not at least 20% in the deal probably best to walk and even our entry level may have been a little tight.
Cheers, MTR