9 Knights Terrace, Margate - Good Buy?

Cheers

 

It went under contract for $425K and fell through on finance after 3 weeks. I bid $401K, owner bid $430K. I Bid Core Logic Auto Val of $410,534 . Owner accepted.

 

Just step back and have a quite read of the below link,everyone goes through it every now and again..And always have a plan b..
Buyer's remorse - Wikipedia

 

I wouldn't be concerned in 10 years time you could probably bet the house it will be worth more than 500k. Is it going to be 800k maybe, 1M I doubt it likely less 600k I also doubt it but likely more.

Sorry but the buy below market value is a load of crock, as market value is what someone is willing to pay and what the other person is willing to accept. So you offered x and they accepted x meaning x is MV. I note that there was another offer but they failed on finance perhaps the bank only thought it was worth x but they offered y?

My recent purchase the land value is $671k if you used the house 2 doors up that was demo into 3 vacant blocks after demo the house (if you could call it that). However the vendors of this purchase spent 90k doing improvements to the house and we secured it for less than the 761k (a lot less). The 761k would also not include the frame of the house or foundations if you had to rebuild so I could say MV was 800k and I bought BMV but it wasn't, the house was on the market for over 200 days and no one bought it and we were able to negotiate a reasonable price that both parties were willing to pay/accept. This is what I mean by it is a load of crock, do I believe the house we purchase is worth more for sure but it was on the market for that long that clearly it wasn't worth anything 750+ and we didn't pay close to the 750k price.

Destroying the Shed/Garage is going to destroy equity (5-10k?) but if you are able to get a granny flat there it can make the property more CF+. You will need to see if council allows it and also and in someway more importantly if you are able to lease the granny flat to a second family because if you can only lease the whole property to one family it limits your market. You should also call some PM to see what sort of demand there is for granny flat accommodation and tenants wanting a granny flat being rented out behind them to a stranger before embarking on the journey to.

Like I said I wouldn't be concerned but I don't know anything about you or your appetite for risk or what your plans are for the investment, how much extra cash you have to fund as my recent purchase is ~700k but rent would be ~450 pw (yes blame NG but I could negotiate the vendor to make it CF+), where as yours as a pure guess (haven't looked into it at all) is ~410k purchase 350 rent? (most likely CF+). All I can say is it isn't something I would of considered as it is missing a lot of things I look for in a property but maybe my list is wrong and yours is right

 

Here is the thing with GF's

They are not suitable everywhere
May not gain much extra at sale time
May be a negative if you want to renew existing house

So, apart from the council and or letting restrictions, size of block etc, it is really a good idea, maybe it is, maybe not, each place needs to be looked at from multiple angles.

wow....

 

Thanks Dabbler. I'll do my research before proceeding with a GF. Just signed 12 month lease with a tenant so wont be anytime soon. In the meantime I can further educate myself.

 

Thanks Dabbler. After further research I will not be proceeding with the granny flat as it would most likely put the overall property into negative equity. I realize now that I made the wrong choice on the purchase and have learn't from the mistake. I really needed to purchase a high yielding property to increase my serviceability but I'm stuck with an average yielding property... Fortunately Margate has risen by 5% in the past three months, so at least I've made some small equity gains.

 

Honestly you purchased in margate a year and a half too late.
However i still think you can do well here as the redcliffe peninsula ticks all the boxes for land scarcity.
Dont listen to the logan cheersquad
You wont get high yielding in qld by adding a granny flat - people wont rent a house on the same block as a granny flat unless inner city- even then its dubious
You can get high yield in regionals or by subdividing and retaining house or just buy units

 

Atta boy...ta...have one around the corner...it looks like the days of sub 400k in Margate are going the way of the Dodo.

I would not put a granny flat...you won't get your money back....and you are destroying wealth.

 

I think he is just holding it now, should do ok, not far from water, but I am not 100% familiar with the best location/s there.

Seems like only yesterday I was looking at 350k there and I thought it was a bit much.

What parts there are the best ?

I was always trying to work out if there is a higher area, like in Manly, overlooking the ocean from an elevated position ?

 

property is relatively forgiving given mother time - well done on taking action at 24yo - make those mistakes young and early, keep going!!!