Buying A Housing Commission House

Discussion in 'Investment Strategy' started by gty12, 17th Jul, 2018.

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  1. gty12

    gty12 Well-Known Member

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    Hello all,
    I know where the housing commission houses are in a certain neighbourhood in Hobart. Does anyone have any experience with buying housing commission houses. I get that the government eventually sells them but are we (the public) able to potentially buy it off them years before it would go to market if we make them a good offer?
    Thank you.
     
  2. NHG

    NHG Well-Known Member

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    I tried few years back, I recall something about Nathan Birch doing it? Not sure where. I have one already in Sydney, I was trying to buy 3 in a row to have enough land to turn it into a row of townhouses.

    So here I am having the chat, lady from the department of whatever it was was like... "listen, if and when it does sell, it will go to the market to make sure it gets a fair market value price".

    Basically it has to go to market to avoid looking like it's a dodgy deal.

    Then 2 years later, I hear about Salim Mehajer buying a carpark in Auburn 50% under market value. So is it possible, probably, just need to shake a few hands.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Simply put, they are sold at auction through their appointed agent.

    A good deal in your eyes may be an extremely poor deal in someone else's idea of a good deal. Sale must be transparent.
     
  4. gty12

    gty12 Well-Known Member

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    Can often be the nature of property and government in Australia.

    So maybe m query should be when will you sell it?
     
  5. NHG

    NHG Well-Known Member

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    $380k total cost with granny flat.
    $650/wk rent.
    Near St Marys station.

    Will sell when I need the cash to fund a deal that makes year on year >7.5% net yield post Badgerys Creek airport and train line going in.
     
  6. gty12

    gty12 Well-Known Member

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    Sorry I meant maybe I should query with the Housing Commission when they will sell it?
     
  7. melbournian

    melbournian Well-Known Member

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    In victoria, They have to go to market - as it to list it for auction (that is the process) others it can amount to collusion or secret agreements that it is sold underpriced. it also depends on the DHS overall strategy is and the gov of the day. Some of the houses are sold cheap (burned down house - with order of demolition or a house in such a bad state of repairs) that DHS would want to get rid off

    I have bought one off the Dept of Housing before - it was in a bad state. and required work.
     
  8. L3ha7

    L3ha7 Well-Known Member

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    Is it same as NRAS?
     
  9. NHG

    NHG Well-Known Member

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    No.
    Just a normal house purchased under market value, and then built granny flat.

    I do not recommend granny flats at this stage in the property cycle. It's a redundant strategy unless you already own the property.
     
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  10. L3ha7

    L3ha7 Well-Known Member

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    So whats the benefit of buying Housing commission
     
  11. NHG

    NHG Well-Known Member

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    None.

    It's just a house. Was the right price for what it was.
     
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