What happened here?

[MrCrumbpacker]

I realise that you can lose money on property sometimes, but what on earth happened here?

http://www.realestate.com.au/blog/hewitt-scores-loss-with-sale/


Eleven years! And a capital loss of 700k. Think what 3.2 million would be worth now if he had stuck in the money markets for an average 9% compounded over that time. Add in rates, maintenance, buying and selling costs etc, and that's what you call a bath.

I presume they didn't build a nuclear reactor next door or something, so what on earth is going on here, does anyone know the area? Did he just pay way too much in the first place?

I know he has not always been the most popular guy, but you would have thought the celebrity cache would have added a bit.

 

[Ausprop]

sadly losses of this scale are all too common. I can think of many similar examples. one that I had an offer in on dropped $1m when the GFC struck and is still there, that was 7 years ago.

2008 feels like yesterday hey?

 

[norwoodman]

I realise that you can lose money on property sometimes, but what on earth happened here?

http://www.realestate.com.au/blog/hewitt-scores-loss-with-sale/


Eleven years! And a capital loss of 700k. Think what 3.2 million would be worth now if he had stuck in the money markets for an average 9% compounded over that time. Add in rates, maintenance, buying and selling costs etc, and that's what you call a bath.

I presume they didn't build a nuclear reactor next door or something, so what on earth is going on here, does anyone know the area? Did he just pay way too much in the first place?

I know he has not always been the most popular guy, but you would have thought the celebrity cache would have added a bit.

$3.2 million is pushing right into the top price bracket in Adelaide, so it would be a pretty thinly traded section of the market. To see big variation from original purchase price isn't surprising. There's very few residential sales pushing that figure. A lifestyle choice rather than a real investment.

There was another property a couple of months ago that was previously owned by a prominent (for all the wrong reasons) business man in Springfield, Adelaide. The capital loss even more extreme than Hewitt's sale in West Lakes. Bought for $4.25 mil in 2012 and sold for $3.26 mil only a couple of months ago by the bank.

Compared to the likes of the Gold Coast, which saw plenty of massive losses on prestige property over the last 5 years, Adelaide I don't think has seen anywhere near as many.

 

[Perp]

What others have said, plus... did nobody with any taste have any say in the design of that home?

 

[Corey Batt]

For the money he has been asking you could buy a beautiful stately character home on ~2000sqm 5 minute from the CBD in a prestige location.

Or you could buy that.

 

[DaveM]

Why would you ever buy in Adelaide? Prices only ever go down.

 

[Deltaberry]

I realise that you can lose money on property sometimes, but what on earth happened here?

http://www.realestate.com.au/blog/hewitt-scores-loss-with-sale/


Eleven years! And a capital loss of 700k. Think what 3.2 million would be worth now if he had stuck in the money markets for an average 9% compounded over that time. Add in rates, maintenance, buying and selling costs etc, and that's what you call a bath.

I presume they didn't build a nuclear reactor next door or something, so what on earth is going on here, does anyone know the area? Did he just pay way too much in the first place?

I know he has not always been the most popular guy, but you would have thought the celebrity cache would have added a bit.

I don't know SA/Adelaide suburbs well, but that is an ugly looking house and if it was in Melbourne or Sydney, I wouldn't pay for it. I'd much rather spend my money on a nice Georgian/Victorian/Edwardian house renovated inside.

Only Chinese buyers - probably the most important buyer demographic after the locals if not the most important - would like this style because they like newish looking things with weak pre-fabricated hollow walls, and I doubt there are many of them in Adelaide since they wouldn't know where Adelaide is.

And seriously, SA has been on the dooldrums for years. Not much going for it after Olympic Dam got shelved.

 

[lizzie]

Not hard to do - I lost $300,000 (incl mortgage pmts etc) on a knockdown and rebuild because of the 2003/4 slump.

Gained it back by buying the current ppor during the regional 2011 dip at $400,000 less than the vendor paid pre-2004. Apparently it's gone back up so I'm happy.

Looking at the link - the medium price for that Adelaide suburb is $650k-ish ... talk about overcapitalising ... and it's rather bland and flat looking

 

[Harro]

You also have to factor in that $700k to Lleyton Hewitt would be a spit in the ocean.

 

[Scott No Mates]

Who says that they bought it for the location, capital gains etc?

I heard that the neighbours were hot

 

[oracle]

Lleyton Hewitt puts Melbourne penthouse back on the market.

Tennis star Lleyton Hewitt is having another hit at selling his plush inner-city Melbourne penthouse, listing it for a cool $10 million.

Hewitt bought the apartments on level 19 and 20 for $8.325 million in 2004 and spent four years kitting it out to create a super penthouse with six bedrooms and six bathrooms.

The former world number one quietly listed the apartment off-market two years ago with a different agent and an asking price of $15 million. Hewitt later slashed that figure to $10 million during a slump period for the prestige market.

Source

Cheers,
Oracle.

 

[Paul@PFI]

Leytton is probably so disconnected from reality he had no idea what he paid for and then wanted to realise what he spend despite the agents telling him it wont sell. Bec probably had a tanty and wanted it so her shut her up and paid way over the top. Then spent another few million on reno's having thirteen different colours of white paint endlessly reapplied to match some designer furniture they left in the sun to split. Tiles from Milan at $8k a square metre that some knob on the tour has and Bec wanted as well.

Just like Bono thinks sunglasses cost $70,000

Almost missed it - "Mural"....I bet its an eyesore they integrated into the main living area.

That said their current Sydney digs out NW are impressive and worth a stack more than it cost.

Maybe they spending too much on websites : LOL : http://www.lleytonandbechewitt.com/