HI Prop
Why is the market so hot? What about inner city stuff/inner West, just curious.
Cheers, MTR
West Sydney
- Thread starter MTR
- Start date
HI Prop
Why is the market so hot? What about inner city stuff/inner West, just curious.
Cheers, MTR
The DOH property auction there weekend past. WOW, people paid some astronomical prices for the property.
Even after a revalue, they'll come out at a loss, don't know what they are thinking. The purchasers didn't sound new either, actually sounded experienced. Wouldn't surprise me if they are from this forum.
I just got my valuation back for my Doonside property, very disappointed, came in at $330,000 and it has a granny flat. The comparables were from December 2012. My RE agent who is also a friend believes it would be snapped up at $400,000 cos the rental income is $620 pw and he said without the granny flat it would easily sell for $350,000. I have searched properties nearby and really there is nothing under $350,000-380,000.
I can never work out these guys, very rarely do they get it right, but surely in a hot market I would expect it to come close, bummer.... Perhaps wait another 2 month I guess.
I can never work out these guys, very rarely do they get it right, but surely in a hot market I would expect it to come close, bummer.... Perhaps wait another 2 month I guess.
who was the valuer?
Yep some of these valuers are an absolute joke....!
It's extremely disappointing when you obtain a valuation from a so called professional when you know it's absolutely incorrect.
I realise there is an argument they may be simply covering themselves from litigation from the banks...but they are over compensating drastically in some cases.
Makes it frustrating when you want to move forwards.
Jack
I have a property in Willmot. Going through the process now of getting quotes for a granny flat and preparing the property.
Speaking to the agent who sold me my property, he reckons market is being driven by investors chasing the yeilds ( He said it's all investors ). He didn't have much on is books to show me and had a list of buyers ready to sell to.
Anyone else with a property in Willmot?
Speaking to the agent who sold me my property, he reckons market is being driven by investors chasing the yeilds ( He said it's all investors ). He didn't have much on is books to show me and had a list of buyers ready to sell to.
Anyone else with a property in Willmot?
It may be the case the figures aren't reflecting what we are experiencing in the market at the moment.....? Might be a bit of a lag before the lift in the market is reflected in the data
You're probably on the button there MTR...perhaps just sit on it for a couple of months and come back to it. Be a good chance they'd be some more favourable comparisons for you to use to in a couple of months as these first home buyers go nuts
Jack
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Hi MTR,
5 x reasons in my opinion:
1. Market in Sydney last peaked 2003/4 after a big run up from the 1990's. So an extended flat period to 2008/9 - now I think we are in for a few years of strong growth - which will simply return the CG chart to trend.
2. Low IRs' - lots of cheap money around
3. Not enough new construction happening in NSW - or not enough where people want to live.
4. Not enough property on the market - listings are down by approx 50% compared to same time last year.
5. Money flowing in from the Chinese community. Whenever $AU is above parity with the $US, it stays in China. When $AU falls below parity, the exchange rate obviously improves and Chinese money floods in and finds its way quickly to RE purchases.
Limited stock, high demand, prices achieved well over asking price. Same story in Newcastle inner areas too.
Several years ago now, I got a property revalued. It was a dual occ in Lethbridge Park. Two fully approved 3 bed houses on the one very large block, fully subdivideable. The reval came back to the approx value of the one home.
When I questioned it, the valuer told me that the second home wasn't worth anything because it wasnt approved. He was from the North Shore (didnt know the area) and stuck his nose up the whole time he was there. He also told me that the property wasn't subdividable (which it was).
Anyway, cut a long story short, I had to find sales of similar properties, which was not at all an easy task, but I did find two other properties that qualified & he changed his valuation.
So....go find the data, present it to the valuer & tell him he's wrong.
As skater mentioned...
Comes down to compareable sales.
Find properties that are similar that have sold recently and send them off to the valuer.
When I know its going to be close I'll look for these sales to begin with and send them off to the valuer to ensure that they use them for the compareable.... Haha mind you sometimes they ignore what you provide them :|
It's certainly a sellers market in Sydney in many affordable suburbs, the Hills District and North Shore included. Where we work in western Sydney (Blacktown and Parra regions) demand is highest for entry level dwellings in both housing and strata complexes. When you're competing with REAs to buy stock, you can feel the change in the air.
Some of our recent examples of "boom-like" behaviour in the market:
* Bought for a client in Harris Park after fending off REA who also wanted to buy this reno project (different agency from the seller) - great value for $$ but buyers crawling over it at first OFI.
* Missed out at auction for client on property with 22 bidders and a price guide of $680K (bollocks!) Our app 730-750K. Sold for $820K
* Missed out at auction with guide of $2m+ (another underquoting case)- sold for $2.6m
* Missed out on a recent house that when advertised (out of area agent) had 18 calls in the first 25mins of listing on the net, and had 6 offers within 8 hrs. Sold for $60K more than anticipated price of $690K.
* OFI's running out of brochures halfway through.
We are finding the Hills district particularly busy in the sub $800K price bracket and believe this growth phase has a little way to go yet. Time will tell.... one thing is clear and that is that's it certainly not just home buyers driving this market. Investors are coming back in droves...
Some of our recent examples of "boom-like" behaviour in the market:
* Bought for a client in Harris Park after fending off REA who also wanted to buy this reno project (different agency from the seller) - great value for $$ but buyers crawling over it at first OFI.
* Missed out at auction for client on property with 22 bidders and a price guide of $680K (bollocks!) Our app 730-750K. Sold for $820K
* Missed out at auction with guide of $2m+ (another underquoting case)- sold for $2.6m
* Missed out on a recent house that when advertised (out of area agent) had 18 calls in the first 25mins of listing on the net, and had 6 offers within 8 hrs. Sold for $60K more than anticipated price of $690K.
* OFI's running out of brochures halfway through.
We are finding the Hills district particularly busy in the sub $800K price bracket and believe this growth phase has a little way to go yet. Time will tell.... one thing is clear and that is that's it certainly not just home buyers driving this market. Investors are coming back in droves...
Thanks everyone for feedback.
Looks like it comes down to finding my own data on sales and presenting these to the valuer or just sit back and wait.
I am not in a huge rush so hoping in 3 months a different story with value coming in at what I would expect. I will post here to let you guys know, if it comes in too low and the market is still booming I will be spitting chips and will be putting in the hard yards and source my own comparables.
Valuer - Opteon
Looks like it comes down to finding my own data on sales and presenting these to the valuer or just sit back and wait.
I am not in a huge rush so hoping in 3 months a different story with value coming in at what I would expect. I will post here to let you guys know, if it comes in too low and the market is still booming I will be spitting chips and will be putting in the hard yards and source my own comparables.
Valuer - Opteon
Just sharing an experience with my recent valuation in Blacktown
The property has a 5 bedroom house, 2 lounge and 2 bathroom on single level on 600m2 rectangular block.
The front part of the house is 3 bedroom brick house built in 1970, and in 1997 an extension of 2 bedroom, 1 bath,1 lounge was built. I purchased the property in 2004.
The recent bank valuation came back $360k. Ouch!! at least it was $140k lowered than I was expecting, considering the living space and brick.
I found from bank valuation report that:
they used fibro house block, ignoring the use of brick to compare.
they use land that are irregular in shape, compare to my rectangular flat block
they used properties in Marayong because he "not could find" comparative 5 bedroom housed in Blacktown.
they advised the 2 bedroom extension was not approved from their research.
With alot of to/from communication, I managed to my property reassessed at $440k ($80k more). The work I done:
Provided to the Bank/Valuer my valuation report. My report not only have comparable sales properties, but provided more diligent than his report.
Bank Valuer said he called Blacktown council and was told the Extension not approved. I advised him I called Council 10 times, and every time they told the extension was approved. At the end I conferenced him in with Council and he settled for the Extension was approved.
I still believe $440k is undervalued but I settle this for now as I needed the extra cash flow to get this approved/design and constructed of an attached Granny Flat, ie of the same property
$440k is the price you would pay for a typical 3 bedroom brick house in reasonable location Blacktown.
The attached Granny Flat was approved and the construction is nearly complete.
So it will be a Round 2 with me and the Bank Valuer in the next few weeks. Specifically I will write a detailed letter to the Bank indicating their Valuer is not conducting 'fair market' nor conservative approach to my property valuation but a deliberate act to undervalue and neglect to take relevant information to provide a fair valuation.
In this case, most home owner would stop and accepted bank valuation but the purpose of this forum here is to learn each other's trade secrete and to negotiate better outcome.
The property has a 5 bedroom house, 2 lounge and 2 bathroom on single level on 600m2 rectangular block.
The front part of the house is 3 bedroom brick house built in 1970, and in 1997 an extension of 2 bedroom, 1 bath,1 lounge was built. I purchased the property in 2004.
The recent bank valuation came back $360k. Ouch!! at least it was $140k lowered than I was expecting, considering the living space and brick.
I found from bank valuation report that:
they used fibro house block, ignoring the use of brick to compare.
they use land that are irregular in shape, compare to my rectangular flat block
they used properties in Marayong because he "not could find" comparative 5 bedroom housed in Blacktown.
they advised the 2 bedroom extension was not approved from their research.
With alot of to/from communication, I managed to my property reassessed at $440k ($80k more). The work I done:
Provided to the Bank/Valuer my valuation report. My report not only have comparable sales properties, but provided more diligent than his report.
Bank Valuer said he called Blacktown council and was told the Extension not approved. I advised him I called Council 10 times, and every time they told the extension was approved. At the end I conferenced him in with Council and he settled for the Extension was approved.
I still believe $440k is undervalued but I settle this for now as I needed the extra cash flow to get this approved/design and constructed of an attached Granny Flat, ie of the same property
$440k is the price you would pay for a typical 3 bedroom brick house in reasonable location Blacktown.
The attached Granny Flat was approved and the construction is nearly complete.
So it will be a Round 2 with me and the Bank Valuer in the next few weeks. Specifically I will write a detailed letter to the Bank indicating their Valuer is not conducting 'fair market' nor conservative approach to my property valuation but a deliberate act to undervalue and neglect to take relevant information to provide a fair valuation.
In this case, most home owner would stop and accepted bank valuation but the purpose of this forum here is to learn each other's trade secrete and to negotiate better outcome.
I suggest others here in the forum even if you're using Managing Agent to look after your property, give your Bank/Broker YOUR own mobile as the first contact for your Valuer. I can't stress how important is get to know your valuer. The Valuer will contact you to make an appt for onsite ( I understand most apartment they will only do desktop valuation).
Yes, it is rare to start a communication channel with your Bank Valuer, but at least onsite to greet him is first step. I've had at least 10 phone calls with him. I pretend to be his 'friend' and helping him to find comparable properties. The Banks don't want you to do that but there is no stopping you in doing so.
But obviously this sparky Valuer doesn't seem to know the area well to be diligent in his report..
My next step is to subtly threatening the bank that I take my business elsewhere if they continue to use the same Valuer when my attached GF is complete . I have 3 loans with the same bank so obviously having some weighting in the negotiation, at least I hope so ;P
Yes, it is rare to start a communication channel with your Bank Valuer, but at least onsite to greet him is first step. I've had at least 10 phone calls with him. I pretend to be his 'friend' and helping him to find comparable properties. The Banks don't want you to do that but there is no stopping you in doing so.
But obviously this sparky Valuer doesn't seem to know the area well to be diligent in his report..
My next step is to subtly threatening the bank that I take my business elsewhere if they continue to use the same Valuer when my attached GF is complete . I have 3 loans with the same bank so obviously having some weighting in the negotiation, at least I hope so ;P
I am with you on this and good effort on your part, but I am an out of State investor unfortunately can not greet and meet.
