I think the big gamble is the auction. Especially in Brisbane. I don't actually mind the fact that they point out that it is a fixer-upper. I've seen much worse.
Just curious--and not looking for state secrets if you actually intend to bid on it--whaddaya figure it's actually worth, regardless of the "merits" of the associated sales campaign?
You are the Hidden Prince of St. Lucia, after all... :-)
Just curious--and not looking for state secrets if you actually intend to bid on it--whaddaya figure it's actually worth, regardless of the "merits" of the associated sales campaign?
You are the Hidden Prince of St. Lucia, after all... :-)
Nah. I've already filled my boots so will not be attending the auction. But I will say that it is exactly the kind of property I like to buy.
Given its excellent location, you could almost certainly rent it out in its current condition with minimal cosmetic work for $340 or $350 per week. Based on the current asking price to rent ratio of the area this means it should be listing at $360k or maybe even $370k with the hope of getting $350 or maybe $345. This is assuming no major red flags with the building itself or the functioning of the body corporate. I am assuming that strata is pretty cheap on this but that rates are expensive (see below).
However to the right person it is worth more than that:
* underlying land value is enormous for a unit that rents for this little. $200k/lot. --> will get capital growth above trend for area. * As an absent owner with no skills I could spend $35k or so ($40k max) and get the expected rent up to $430/week or maybe even $440. Someone with some tradie skills and a ute could do this for a fraction of that. (This is the sweet spot). I am talking about tiles, new kitchen and bathroom, new carpets in bedrooms, new window furnishings and security screens, full paint job, fans, modern light fittings, etc.
If I was in the market for a place at all, I'd pay $340k for it and no more after a non-negative strata search and building inspection, but fair value is $365k or maybe a little more. My guess is that it will get passed in at $320-330k and the owner will be out an auction fee for no gain. The right REA would have notified the 50 people like me s/he has in their address book with exactly the bizcase I have given above.
But first I'd put in a lowball offer of $325k for this one and see how I went. It will actually rent at better than the $350/wk they claim, and there is no extra investment required to get that. Body corp is a bit high. (no I am not the vendor, but I know the building well.)
I will admit I am wrong about the marketing if the bidding gets to $345k.
There is a decent chance I will have to admit I am wrong because St. Lucia is finally moving a bit after 7 years in the doldrums and there really aren't many like this on the market.
Hidden Prince of St. Lucia? Crouching Jester, maybe.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
The contents of any ad in this environment becomes fairly irrelevant, agents aren't attracting interested parties or potential buyers, they are attracting buyers.
An agent like this in the late 80's early 90's would be insolvent, in this day and age he/she will thrive.
If I have a 2+ bedroom anything within 15km from Brisbane, sydney or melbourne it will sell whether muppets like this write rubbish ads like this or professional ones, investors aren't interested in anything other than what they all the fundamentals (in a speculative environment price is not a fundamental) and will buy no matter what the agent writes.
In some respects agents are completely superfluous, they are an unnecessary conduit that could be replaced with s carsales.com.au type platform.
The best part is you so called genius investors pay these tools 1.5-2.5% per transaction for the prevlidge plus oropery management fees for the time you have it as an IP. And renters are morons?! Hahahaha
The contents of any ad in this environment becomes fairly irrelevant, agents aren't attracting interested parties or potential buyers, they are attracting buyers.
An agent like this in the late 80's early 90's would be insolvent, in this day and age he/she will thrive.
If I have a 2+ bedroom anything within 15km from Brisbane, sydney or melbourne it will sell whether muppets like this write rubbish ads like this or professional ones, investors aren't interested in anything other than what they all the fundamentals (in a speculative environment price is not a fundamental) and will buy no matter what the agent writes.
In some respects agents are completely superfluous, they are an unnecessary conduit that could be replaced with s carsales.com.au type platform.
The best part is you so called genius investors pay these tools 1.5-2.5% per transaction for the prevlidge plus oropery management fees for the time you have it as an IP. And renters are morons?! Hahahaha
Hey you are free to transact your business any way you see fit. It's perfectly legal to do everything without an agent.
But don't blame me when you end up in jail or with a big fine or losing a bunch of money because you forgot/didn't know about some compliance thing every agent knows how to do.
In my view this agent did just fine for himself. Don't think any favours were done for the vendor though. But then again, the vendor is control of his/her destiny so in the end it's their fault.
Mustapha Mond
4 Oct 2014, 10:14 PM
i think he is simply speaking in the vernacular.
Smart man.
Peter
If a quick sale was the main criterion, I would tend to agree. That was achieved. Mind you if they listed it at $335k in the first place it would have gone even quicker and cost less in agent's fees.
The best part is you so called genius investors pay these tools 1.5-2.5% per transaction for the prevlidge plus oropery management fees for the time you have it as an IP. And renters are morons?! Hahahaha
Not sure if you realise that the majority of sales are between owner occupiers, these sellers also pay agent commission on sales.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy