Undervalued house but there is a catch

[Goyco]

Hi All

I recently saw a very nice house across from a park here in Melbourne. Good sized block, fairly new large 4 bedroom 2 Bathroom probably rental yield 5.5% the price is about $30,000 less than other properties. Sounds good right? But only one problem the house next door is built in the fashion of......a castle.

I'm interested in peoples views whether this house is worth buying even if it is at a discount. What sort of discount should one expect to pay for a property like this to be worthwhile? Or is it not worth considering at all?

Total purchase would be about $50,000 below replacement value

cheers

 

[Glucose]

I really don't think the style of the house next door would make any difference. It certainly wouldn't deter me from buying. You mean the "discount" is just because the house next door is a castle? If everything else is right I'd say you'd be getting a bargain.

 

[Simon]

It would deter me.

But I am not your average person

 

[steveadl]

Wouldn't bother me.

How much of a castle are we talking, do you mean like this sort of thing:

http://www.realestate.com.au/cgi-bi...header=&c=71340798&s=sa&snf=rbs&tm=1194330287

 

[s_t]

If it has to be priced lower to sell, then it will have to be priced lower to rent. Still might end up with an OK yield though. Might be slower to rent when/if an excess of rental properties occurs.

Can the castle be blocked out of view? A hedge of tall bamboo or something along the whole border might help.

 

[twobobsworth]

Wouldn't bother me.

How much of a castle are we talking, do you mean like this sort of thing:

http://www.realestate.com.au/cgi-bi...header=&c=71340798&s=sa&snf=rbs&tm=1194330287

Looks good.

 

[Goyco]

Thanks Guys

The house next door has turrets and everything. Like an English castle. Quite bazaar really. In a down market this might be harder to sell and/or rent. Right now rentals are tight less than 2%. The other one posted on this thread doesn't really look that bad. But where is Rapunzle?

Still the house for sale is very nice.

mmmmmm

cheers

 

[duncan_m]

Thanks Guys

The house next door has turrets and everything. Like an English castle. Quite bazaar really.

Are you able to take a photograph and post it here? sounds fascinating.

 

[TheCamel]

Wouldn't bother me.

How much of a castle are we talking, do you mean like this sort of thing:

http://www.realestate.com.au/cgi-bi...header=&c=71340798&s=sa&snf=rbs&tm=1194330287

well procreate me ! I'd pay 1.2M for that.

 

[steveadl]

well procreate me ! I'd pay 1.2M for that.

You'd be on your own so far. He's had it listed since January and has dropped it from $1.3M so far.