Auction Action - FOMO

Wow great result for the housing co-op but a lousy property.

Google maps gives me a 1 hour commute to work in the city, it is a crummy pocket of the area and proximity northland is not really a draw card in my view.

This area was pretty untouchable until recently. I am talking 6-8 months. Curious to see how this area will look in a few years time...

 

Well let's see, was it a developer ? the block is small.

Are they going to do a reno, they like reno shows & the more to do the more fun it will be !

And someone was saying that similar places that are habitable are cheaper or similar by private treaty ?

Yep.....*IDIOTS* if yes.

PS lot of you are hot on Melb still, but there has been a lot of changes, it can turn quickly, I would never buy in a market like Mel or Syd no matter if it could double in next 2 years or not, because it has had a good run, if you know the market and areas precisly and you get a decent buy, well, no worries......

The big question is, if you got a 10k reduction tomorrow, would you take it off their hands ? No ??? Yep, idiots, now they may end up lucky idiots, or they may make it home which means if they had some specific reason, then they are excused from the idiot tag

 

I was watching this auction on fb. The auctioneer played the bidders perfectly. I thought the auction was gunna end up passing in at 3m but he elicited almost another 500k after checking in with the vendors! Freaking crazy!

https://www.facebook.com/video.php?v=10154802229614671

 

haha - The person who bought it was is an architect (locally) who is no doubt going to get permits etc. well - 600sqm sold for 1.6-1.8mil in St Albans (that is way more than 770K). the growth zone has very relaxed development rules, heights restrictions etc is not like a similar general residential and only 10 percentage of the whole suburb is zoned this way .Even the recent victorian state planning rules which enforced minimum garden percentages exempted the "residential growth zone" from this. similar blocks have had permits for 10-12 apartments which would sell 500K each. Well good on him - i wouldn't be calling him an idiot as that would only be sour grapes for people who do not understand development codes.

Not sure who mentioned stuff gets sold by private treaty as every property ard this pocket here has gone to auction. i would take it for 700K which was the limit i was working with no doubt (but not at 770K).

not sure why would you wouldn't buy in mkt where you could double like sydney or melbourne. it is like saying i would buy "a general residential zone with 35% garden zone" and chill on it for mediocre growth. VS buing "Residential growth zone which enabled multi storey, minimal setbackup" and making higher growth. now that's idiotic.

but yeah i am not asking to buy in eastwood, randwick or glen waverley or balwyn or doncaster - they're at the peak - the growth in melbourne are in suburbs that have yet to taken that leap yet.

 

It doesn’t sound like FOMO biding, sounds like 2 developers fought it out over a RGZ development site.

FOMO is when a few 30 somethings with kids in tow outbid each other for an average 3 bedroom house in the suburbs.

 

it came down to the last 2 bidders (some mainland Chinese who probably din not even know it was RGZ) and Italian architect. there were other bidders (or potential bidders like myself who wanted it) coz I thought it was a good buy based on its crappy condition and had the FOMO thought that maybe it was so bad no one would rock up to buy it which I was wrong

 

Ah ok fair enough.

FOMO is what I saw 2 weeks ago in Princess Hill. Vic terrace quoted $1-1.1m. opening bid was $1.1m sold for $1.55m. The bidding came from 2 groups of 30 somethings, they were bidding in 10k increments and it took less than a minute to bid it up 450k. The auctioneers speech went for 15mins.

 

unfortunately, it happens everywhere I suppose in Melbourne nowadays for those looking to buy - you've made the call yet on coburg or ascot vale?

 

Still looking mate, I’ve updated my post, leaning towards Coburg as better value than Ascot Vale.

 

wow those pics look rough

 

Aboriginal Housing Commission - some tenants got alcoholic issues etc - the place had the smell of jack daniels throughout (gonna be hard to clean the stench)

 

Well, we will see.

I said, I wont buy in an area where a boom/bubble has been going for a while & I do not know the area, you clearly did not read what I wrote.

PS you yourself said and saying it is too much, so, there you have it.

PS PS wow some of your are touchy about your areas, do not say anything to question the spending in areas you have an interest ! lol

 

I too believe in cycles.

Buy at the top of the cycle and any great negotiating is undone pretty much straight away.

Buy averagely in the bottom or rising or 9 o'clock and you'll do better.

I feel that most of Melbourne that's now considered as hot as peaked. But I've been saying that for 2 years now.

 

Yeah, same TMNT, you just never know when it has or will turn, or if some areas keep going, but the storm clouds are gathering IMO, so I would not do it, others are free to do as they wish or if they know what they are doing exactly, course, go for it....

I made a decision to stop in Sydney and go elsewhere, purely once it had run x amount and I feel, if RBA had not done those 2 cuts, we would def be backwards here, the cuts emboldened people spending silly amounts for very poor yields, too risky for me even though many would have made decent CG.

At the end of the day, if you want to gamble and you have enough money to do so, again, have at it, I won't. And I won't do something just because others are.

 

I'd like to consider myself as a seasoned investor and as you say there are clouds forming. But I've been so wrong about these cycles . It wouldn't surprise me if the markets just kept on rising slowly.

I am looking for the right timing for a ppor but am unsure as whether I've missed the boat. A nd continually missing it

 

There was some pretty different things happening this cycle, and yes, no one knows for sure if we will be up 10% or down 10% in any specific market or area, but I saw what happened in parts of Sydney with APRA on the scene.

As far as a PPOR, if you waited this long, another 12 months or so won't matter, but depends on where, if an expensive suburb, I would probably just find a decent buy, but not anywhere that people are acting like drunken sailors with the money.

 

Nah just calling it as it is - if you came up and said apartment market in melbourne was oversupplied and anyone buying into was idiotic. hands down i agree with you. i for one started in the apartment market overseas and here buying quite a lot in the mid to late 2000s.

LOL - i think if you have mouth off as a seasoned investor calling ppl idiots, should be able to take some and i don't own in that pocket and now that it has risen looking to other pockets suburbs - so really why be bothered?



You did say you would never buy in market like Mel or Sydney no matter if it could double in next 2 years. i just find that weird - as there are oppourtunities in every city, melbourne, brisbane and sydney - some maybe more or some maybe less. some yileding more some yielding less. If you had 2 milliion to invest and bought properties that could double 2 million why wouldn't you?- as much analysis as one can do there is an element of luck in everything just some are much calculated risk wise. a growth zone itself is like a corner block with more benefits and advantges - hence i was purely highlighting to you the development code that makes the product or property unique. you could have the most beautiful property with a single dwelling convenant which makes it less attractive. You only have to see the properties in st albans being rezoned and jumping to a million+ dollars (if you could build 3 in standard residential code and suddenly you can build 10 -is it not worth that much? is it a gamble).you may have cut out of sydney - and gone elsewhere (not sure how much you made elsewhere) but that does not mean the ppl who stayed on looking for opportunities are idiots.

 

No, you have it all wrong. Your not comprehending what I am saying or said. I said they are idiots. I did not say you, did not imply you.

I said I wont buy now, there is no way to know if it doubles or not, I would not expect so, but people *are* buying as if it will.

I won't bother reading the whole reply, I am allowed to think they are idiotic, you do not need to get riled up if I say they are idiots, carry on......

 

Yeah u are allowed to call ppl idiots whether implied or not. Yup agree carrying on no point going on abt it

 

well is it FOMO or really just ppl like to live in this area (on a busy road) and the zoning. just looked at the price for the 129 albert st was sold 850K - 80K more than 2 weeks ago.



@JDP1 - this is non-fictional boom - in the manner of 1.5 years the price went from 580K to 850K (they're all ex-housing comm houses in btw on blocks of 490-500sqm) which is 270K gain or 46%

127 albert street - 21st Dec 2015 - 580K
145 albert street - 9th April 2016 - 612K
126 albert street - 1st Nov 2016 - 680K
125 albert street - 13th may 2017 - 770K
129 albert street - 22nd may 2017 - 850k