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Our house is up for auction tomorrow!; Anyone want to guess how the market has performed in the last 5 years?
Topic Started: 26 Aug 2011, 12:44 PM (18,705 Views)
zaph
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thanks for your honesty Trojan. it would have been easy to say you sold it, when you didn't and had a good gloat.

what would you accept? (sorry if this has been answered) how far away are the buyer and seller?
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Trojan
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zaph
29 Aug 2011, 05:23 PM
thanks for your honesty Trojan. it would have been easy to say you sold it, when you didn't and had a good gloat.

what would you accept? (sorry if this has been answered) how far away are the buyer and seller?
You are welcome.
I actually started this thread as a sample of how Sydney's market has performed.
Its too easy to look at a house bought in 2006 bought for $X and now sold for $Y and think you prices went up by alot without factoring how much the house has been improved.
But its a shame how a handful of bears conducted themselves so badly in an essentially neutral thread. Maybe its because I bought my own house and thus must be an enemy :huh:

We would have liked roughly $900k (so around 5% more). We were prepared to accept less but not $40k-$50k less.

I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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Trojan
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Mc_Gusto
29 Aug 2011, 05:14 PM
Trojan - you asked the question 'does anyone want to guess how the market has performed in the past 5 years'
Well how has it performed?? Cos reading through this post it sounds pretty shit to me.

Bang bang
You can come to your own conclusions.
Some think a 6% term deposit is a great investment. Other's think its a terrible return.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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hoofarted
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"We were prepared to accept less but not $40k-$50k less."

Another way to say this could be that the potential buyers were prepared to pay more but not $40k-$50k more? I fear you may be unhappy with your decision not to sell but I can understand your psychological state of mind around the perceived value.
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ajGold
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Trojan
29 Aug 2011, 05:51 PM
Its too easy to look at a house bought in 2006 bought for $X and now sold for $Y and think you prices went up by alot without factoring how much the house has been improved.

We would have liked roughly $900k (so around 5% more). We were prepared to accept less but not $40k-$50k less.
So I wonder if there is a mismatch in vendor and the potential first-buyer psychology here, Trojan?

Into that ideal price, you've factored the cost of various improvements that you've made to take it from I1 to VVS1 (citing diamond clarity here). It's no doubt advertised with a long list of house-proud improvements!

However, to someone like me who is yet to buy their first home and has kids on the way, I would set my expectations based primarily on the recent surrounding sales history and its +ve/-ve direction. Much of the value-added stuff for me would be a secondary consideration, since I expect that doing various improvements is actually half the satisfaction of owning.

Anyhow, just my point-of-view from the other side of the fence. :)
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Trojan
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hoofarted
29 Aug 2011, 06:08 PM
"We were prepared to accept less but not $40k-$50k less."

Another way to say this could be that the potential buyers were prepared to pay more but not $40k-$50k more? I fear you may be unhappy with your decision not to sell but I can understand your psychological state of mind around the perceived value.
Yes I am aware that there is a gap between what we are willing to accept vs what the buyer is willing to pay.
And I am not arrogant enough to say that my idea of its value is accurate and the buyer's is low.
What we do know is that the house is worth more than $850k to us and therefore if no one wants to pay us that now, we are happy to hold for the time being.

Its like having a 30 yo car. The market might only pay $500 for it but to me its worth more so I might as well keep it.
In no way will I be saying the buyer made a mistake for not realising the car is worth more than $500

Whether we wished we did otherwise, well only time will tell.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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Trojan
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ajGold
29 Aug 2011, 06:10 PM
So I wonder if there is a mismatch in vendor and the potential first-buyer psychology here, Trojan?

Into that ideal price, you've factored the cost of various improvements that you've made to take it from I1 to VVS1 (citing diamond clarity here). It's no doubt advertised with a long list of house-proud improvements!

However, to someone like me who is yet to buy their first home and has kids on the way, I would set my expectations based primarily on the recent surrounding sales history and its +ve/-ve direction. Much of the value-added stuff for me would be a secondary consideration, since I expect that doing various improvements is actually half the satisfaction of owning.

Anyhow, just my point-of-view from the other side of the fence. :)
Thanks for sharing your view from the other side and yes it is possible

Note that we didn't think the target market was for first home buyers but for couples who had a 2 bedroom apartment in the area and starting a family so need a house with yard.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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earthsta
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Trojan
29 Aug 2011, 05:51 PM

We would have liked roughly $900k (so around 5% more). We were prepared to accept less but not $40k-$50k less.

Que?

5% of $900k is $45k

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BubbleTrouble
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Trojan
29 Aug 2011, 04:36 PM
Sorry, missed this post.

When I was looking for an engagement ring for my now wife, I researched about diamonds.
Caret, Clarity, Color and Cut

If you wanted a diamond with all the above features, it will cost you a mint as that is what everyone else was looking for as well.
However if you are willing to compromise on 1 or more of the above features, the price rapidly drops


My feeling about the Sydney Inner West property market is similar
If you want good suburb, close to city, close to transport, new or renovated, not on main road, big interior space, big yard, then you are going to have to pay a fair bit for it as that is highly demanded.
But if you compromise a bit the price comes down fairly quickly.

i.e. If you went down to a 2 bedroom apartment, you could get it for half of $850k
or if you were willing to put up with main road, once again it will be a lot less than $850k
or if you were willing to live in a seedier suburb (think housing commission area) then once again you will get a lot of change from $850k

To answer your question whether you could obtain everything in your list for $850k, the answer is yes you can - but don't expect it to be perfect.
The perfect ones costs more than what an average man can afford - kinda like diamonds really. :cool:
Thanks for that Trojan. It was well put and makes sense. I guess that's just the way Sydney is.
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Mc_Gusto
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mcgusto

Trojan
29 Aug 2011, 06:06 PM
You can come to your own conclusions.
Some think a 6% term deposit is a great investment. Other's think its a terrible return.
My conclusion is your analogy is non-sensical! You would have a solid 6% return in the bank on one hand and no return on the other? Unless I am mistaken your house is not worth anything (financially) until you sell and to sell you need to meet a market which you perceive undervalues your house? So until that happens you have not made anything! In fact you have only spent - initial purchase, renovation, interest. 6% term deposit is looking ok to me?!
Silence of the BULLS

HA HA
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