Am I missing something...or sell and run with the money?!

Discussion in 'Investment Strategy' started by Sackie, 24th Sep, 2019.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Fun post, thanks for the open loop @Sackie

    From my initial look I thought Manor Houses are most achievable on corner blocks? Isn't parking tricky on a normal block that is developed on both sides? Perhaps there is an optimal site width that can make it work better...
     
  2. gach2

    gach2 Well-Known Member

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    With the numbers you have posted I agree. I havent included your premium as that wasnt there until the offer came on the table.

    But 200k demo? what is there at the moment??????

    And suprised to know what a 2 million build is

    Not saying your wrong but am more curious as to what the money gets you
     
  3. Optimus

    Optimus Well-Known Member Business Member

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    Awesome age, daddy starts to get some attention...

    We got super lucky with our first, slept through at 6 weeks and never heard her cry for the first 3 months.. (proper cry)

    So we thought this is easy, second, not so lucky....
     
  4. Sackie

    Sackie Well-Known Member

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    Not just the demo, soft costs too. Architecturals will be about 40k alone.

    Re the building cost, that's not much tbh. Drive 2 or 3 suburbs over and you have construction costs of at least 10-15 million for free standing mansions.
     
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  5. Sackie

    Sackie Well-Known Member

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    Yeah it's interesting I've heard from many ppl their first was a charm and their second was.... the nightmare. I don't think I'm brave enough to go though it.
     
  6. Optimus

    Optimus Well-Known Member Business Member

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    Do it mate, you might regret not doing it but you won't regret doing it.
     
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  7. Sackie

    Sackie Well-Known Member

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    Very philosophical. :)
     
  8. Archaon

    Archaon Well-Known Member

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    @Westminster iirc yours was 4 in a line?
     
  9. gach2

    gach2 Well-Known Member

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    very curious what suburb this is?
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Double Pay :rolleyes:
     
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  11. Sackie

    Sackie Well-Known Member

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    Deal done! ( Insert deep exhale icon). Will update later.
     
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  12. wylie

    wylie Moderator Staff Member

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    You realise we are all holding our breath... :eek::p
     
  13. Sackie

    Sackie Well-Known Member

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    Driving ATM :D:p
     
  14. Sackie

    Sackie Well-Known Member

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    Warning. Long winded story ahead.


    Update.

    Some background. This was always a very long term buy and hold and also a place to store money. Some like to store money in shares, some in banks, some in super. I prefer to store money in long term high demand assets with low overall risk. I have 3 such properties where I store wealth as very long term holds. Some of the money used to pay down the loans comes from renovations, sales overseas, JV projects profits and my own developments.

    This property if developed to its maximum allowable height will have uninterrupted beach views and almost uninterrupted city views. I was thinking to sell it near the top of the current boom which passed but for lack of a better reason, I was too indecisive and just held it. Especially when the value went down ( from the absolute peak) about 10-15%. I wasn't particularly worried because it's function was to hold wealth very long term for what I consider to be a low risk asset storage.

    Recently I was offered a price above market value and I couldn't figure out why. It just didn't stack up for a duplex, which would be its most profitable use. And the agent kept feeding me seeds that building a duplex was the plan. I actually didn't give it a second thought as that hands down makes the most sense. But something just didn't seem right.


    Cutting a long story short, I found out that the buyers are not buying based on a business decision, but it's purely emotional. Very emotional. There is a particular reason why they wanted to buy on this street ( it's just not right to disclose why) but they wanted this lot to build a family home. Massively over capitalise on the lot but that's just it. It's NOT a business decision. It's personal. So what becomes 'overcapitalising' is very subjective.

    When I realised how emotional (the agent tried very hard to keep the absolute truth of the story hidden) the buyers were and it was completely not based on any business thinking, I realised there was more room to get a higher offer over the primium I was already offered.

    There was a sale in the street very similar to my lot which sold right at the peak of the boom. The offer I ended up getting, if compared to that comparable, will be about 9% above that sale.

    I've never had a buyer like this in the past and I doubt I will again in the future. This is my 1 in a million buyer.
     
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  15. hammer

    hammer Well-Known Member

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    This story has a very nice ending. :) Congrats @Sackie
     
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  16. Sackie

    Sackie Well-Known Member

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    The folks who are buying it are really nice people too. They are building their forever home to continue their family's memories. They have a whole gaggle of young ones too.
     
  17. Air_Bender

    Air_Bender Well-Known Member

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    Great ending. Congrats @Sackie
     
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  18. Tonibell

    Tonibell Well-Known Member

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    And a lot of cash - but that could be changing.

    I guess you don’t get that kind of buyer in Geelong :)

    Sounds like a good strategy executed well.
     
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  19. MRO

    MRO Well-Known Member

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    Thanks for updating us all. So often we gets posts that trail off to nowhere. I admire your patience, i probably would have jumped at the first offer.
     
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  20. Player

    Player Well-Known Member

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    Great outcome for you and your family mate.

    Q. When do you know it's the right time to sell a property?
    A. When you wouldn't buy it back for the price you sold it for. :D
     
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