VIC 22% price increase in 4 months.. Just wow

Sold $700,000 March 2017

4 months later...
$855,000!

51 Kallay Street, Clayton South, Vic 3169 - Property Details
51 Kallay Street, Clayton South, Vic 3169 - Property Details

I can't find what makes it so special or if I'm missing something?

 

Wow, that's a crazy profit.

 

Maybe they installed downlights

 

Not surprised at all. Area I'm trying to buy in at the moment was 330-350 in April, now that Im ready to buy everything is going 440-500. Hard to find anything around the 400 mark which is my budget. Its an undesirable suburb too!
Melbourne is mental. Great if your a seller but not great if trying to buy in or a seller having to buy back in.

 

Wherw are you looking to buy?
I have two Reno projects in the west for that price I might sell off market

 

Herd mentality perhaps of missing out, like they did in Sydney?

 

With that price range if you are talking standalone house market, looks like it's either northern/ western melbourne, which is selling like hotcakes at the moment, probably because most of the first home buyers are very active, with the history low PPOR rate and stamp duty waiver for that price range.

 

Looks like a buy-and-flip, but normally for flipping it wouldn't sell off market...weird

 

Purchase price - $700,000
Stamp duty for buyer (assuming PPOR) - $37,000
Other expenses inc. solicitor - $3,000
Total purchase = $740,000

Assuming 80% LVR and 4.0% interest, holding costs for 4 months = $9,500.

Selling costs, approx. 2.2% = $18,810

gross profit = sell - costs - hold - purchase = $86,690

CGT = MTR * gross profit (no 50% reduction). Let's pretend it's 32.5. CGT = $28,174

Total costs paid to someone else other than the actual house&land = $96,500
nett profit = $58,515 for 4 months.

 

Should be nothing special this is clayton south - clayton is already million dollar + for blocks of land - this is just a flow on effect (which is why ppl keep saying cycles, peaks yet the suburb prices keep growing when the suburb next to it becomes more exp

Also a chinese enclave now, monash university etc.

there are places that were 540 and now 800K in a span of months as well.

 

There's quite a bit of proposed rezoning going on around here. Changing from General Residential to Residential Growth. I didn't check property location but its got a whiff of that. Rezone is not yet confirmed.

 

They should hold it for a few years. The profit would be even more. I think

 

Nothing special per se...they know the likely market that will quite willingly pay 155k raise in 4 months.

 

Its called a boom cycle Very nice