Auction Action - FOMO

I been to many auctions before - mainly in Melbourne, Sydney and Brisbane - just yesterday went to this property (hoping to buy a bargain in northern suburb 10km to Melbourne CBD). I wasn't looking but though since it could a good buy and had the FOMO (Fear of Missing out) for a good buy . Well basically couldn't have been more wrong

It was a house run by the Aboriginal housing commission and was put for sale by public auction, 90 -120 days settlement. basically trashed out - you could smell the urine stains, walls been trashed - and it was kicked in just about everywhere. walls also had to be all redone as the roof was leaking and the timber frames were all wet or damp. Also electrical was disconnected and all wiring had been pulled out. got a quote it was around 60-80K to repair

@willister next thing there were more than a 100 Ppl rock up to auction. bidders were climbing fences to buy the place and what might have been 500-600Kish was now sold at 770K. Never went to an auction this crazy before - renovator's delight turned to be more exp that the last property in that street around 612K.

 

And this is just one example of many around the country.
Wonderful what our tax $'s go towards hey

 

Melbournian, you're a switched on guy

Was it simply a dumb and overpaid purchase who ever bought it?

When I was looking at a few areas years ago..Some went way above what I was willing to pay and I thought what a pack of morons.

However this area boomed. And these guys made a killing.

Hind sight.

Do you think this suburb us going to boom ?
Or just the herd mentality?

 

Was this is Preston ?
I think I may have seen this online, the place I saw had been boarded up and grass overgrown...

Edit - was Preston, just not to one I was thinking about
125 Albert Street Preston Vic 3072 - House for Sale #125245470 - realestate.com.au

 

this pocket of preston didn't really take a leap yet - i had my eye on it being an area i liked. there were 5-6 bidders there. before the auction, one lady said can we start bidding now. there was a bidder who even climbed the fence as it was packed. i have been to many auctions in australia (but this was the most i have ever seen - if you contrast this to sydney, there are equally many ppl, but brisbane similar areas with housing comm - it is no competition (here is like a shark frenzy - just see the photos yourself)

It came down to a mainland chinese guy drinking his bubble tea bidding slow vs an italian local architect (young bloke) which i spoke to before who bid with this family. he won it. There were so many ppl there were pushing the fence (is like the latest iphone coming out of the boxing day sales in myer). the auction was over in 5 minutes even before i could put a bid in.

this is 5 bedroom but will require intensive repairs before anything happens. with permits it could yield gains but i missed out and the boat has sailed for this pocket.

 

yup just look at it - FOMO factor - this trumps any place i have seen in terms of damage (it could have been a burned down house).. asbestos ridden bathroom, kicked in bedrooms - electrical all remove, urine infested, alcohol smelling, overgrown grass, roof leaking, plumbing leaking. and yet more than a 100 ppl turned up on auction day and went nearly 160K above what a similar property was sold for. that is why auction rates are important. no point looking at percentages when the market dictates how much one will pay

got a friend who has place in wagga value 350K bank, only sold 315K - when it comes to crunch there needs to be demand for prices to move.

 

looks more like a KDR rather than renovate and repair. Is the land parcel big??

Did the mainlander or the italian fella win it?

This is definitely a bubbly frenzy. Remember some similar small dumps in Redfern Sydney going for auction that sold for over a million bucks with big crowds. Well happens with all kinds of assets I suppose.

Imagine all of ém running for the exits when the market turns.

 

other than fomo

why was thereso much interet in it.

to be so much collective interest , there must be a common theme,

 

ps given the melb market, and even thoug that oreston pocket may not have gone up as much as it should have

do you think there is a chance of a flattening or a drop soon? given the timing, it seems mebourne to me is near or at its peak

 

Mainland was too buzy finishing his bubble tea and chatting he didn't get the last bid in. Italian person won it.

i've been waiting for the doncaster market to turn back time for 3-4 years now to the 800Kish but it is staying put at 1.2.-1.4 million after selling out at that price though not much increases. Keep saying it was a bubble 2-3 years ago.

Block is a 495sqm on a main road and growth zone block. in relative terms if you compare to similar st albans block 100+sqm more sold for 1.81 million by a vietnamese sydney buyer

Of course there would be readjustments to any market (and i do think they did pay 80-90K above what i wanted to pay or didn't bid for)- but i follow auctions every week without fail for the last 2 years and just went i think it dip slightly, it bounces up well depends on the suburb as not all are equal. as u said, stuff happens in redfern - i've been to a logan auctions before too (3-4 blokes rocking up before being passed in). This house is ex-housing comm as well.

 

close to northland, latrobe university (a real uni unlike some randoms around) - and zoned "growth zone" . Also many ppl like the idea of a renovator's delight.

 

I would say not melbourne has peaked but suburbs have peaked. i watch give or take 15-20 suburbs every week ( the way i see it is - once a suburb reaches a peak) it flattens with no really massive jumps. then it ripples out to the next suburb. nobody is going to buy the next doncaster as it is near its peak. but it moves out donvale, mitcham, all the way to ringwood

Same as western, it was yarraville, seddons, then sunshines and only this year the St albans that made that leap into the growth achieving million dollar sales.

Same as the north, when thronbury and preston become and achieving million dollar prices, ppl moved to reservoir, these guys bought pushed prices to 700-800K from 500k, and that is the ripple effect

i would say certain melbourne suburbs has peaked but not all, Pt cook, was stagnant for years (300kish mark) until this year it really moved nearly a 100K which i cashed in for a sale

Now it is more the next suburb that will move big. Werribee, Geelong only time will tell? people who just randomly look at stats and say bubble - without suburb specific knowledge really do not know melbourne at all.

 

It's only 495 sq !

 

A similar thing happened in Mill Park yesterday. I had been watching this property closely with some interest as I bought my PPOR just in the next street up last year.

11 Madigan Crescent Mill Park Vic 3082 - House for Sale #125262442 - realestate.com.au

Agents were quoting something around the $600 to $630k mark for this property and although not as crowded as that Preston property the auction was well attended with a number of mainland Chinese, Indians and locals.

The first bid came from a young Indian family who couldn't wait for the auctioneer to stop rambling and get on with the auction but they were quickly challenged by a steely looking, determined local investor. Every time she was outbid she hit back straight away and kept her eyes solely fixed on the auctioneer. Surprisingly only one of the Asian attendees put a bid in but he quickly gave up once the bidding reached $620k.

As I expected the property was called on the market at $630k but this seemed to ignite a fierce battle between that Indian family and local investor. At one point bidding increments increased from $5k to $10k and neither party was showing any sign of weakness. By the time bidding reached $700k the crowd was gasping in bewilderment and the young Indian family snapped up the property with a final bid of $707k.

To put things into perspective the house below is literally 3 doors down from this property and it was sold just last June for $605k. Unlike 11 Madigan crescent this property was renovated inside and out and is on a larger plot.

1 Hogan Place, Mill Park, Vic 3082 - Property Details

FOMO indeed.

 

idiots.....

or maybe we should half trash our places before auction instead of doing landscaping & furniture placement etc......mmm

 

Right on Dabbler, and they probably left an extra 20% on the table by not setting fire to it...

 

That is actually amazing considering that it is pretty far from High Street and also the train stations.

I bought a small 3 bedder house at this part of Preston late last year, and I already noticed the prices have moved since. Even 2-3 bedrooms townhouses are selling into high 700s and high 800s:

7/4 Austral Avenue, Preston, Vic 3072 - Property Details

2/177 Bell Street, Preston, Vic 3072 - Property Details

2D Edwin Street, Preston, Vic 3072 - Property Details

34B Miller Street, Preston, Vic 3072 - Property Details


Even Reservoir is joining the party, the 3 bedder townhouses are going into 700-800K's range:

3/138 Rathcown Road, Reservoir, Vic 3073 - Property Details

2/8 Cuthbert Road, Reservoir, Vic 3073 - Property Details

I actually think there will be another round of FOMO after 1 July, when the free stamp duty for FHB kicks in.

 

well... maybe you're right but are your places in the growth zones that enable the build of apartments? if not landscaping and furniture in the world won't attract half of what went there.

 

ripple affect from reservoir/thomastown as it gets more expensive - ppl are moving out to lalor and mill park.

 

I think the sub 600K would be attracting a lot of competition come 1st july and there will def be uptake in H&L as majority are below this price bracket.

there are lot of ppl looking for houses in melbourne whether ppl think there is bubble or not (as i went to the H&L centre in the west, the crowds of ppl lining up) was long and it sold out in a manner of hours.

Even the south melbourne townhouses off kingsway (sold out in 48 hours) of being listed even if it is one of the busiest roads in melbourne.