DARWIN - Discounted by 22% and I'm still Hesitating...

Me too. Good discount, income property to help pay the mortgage too. $200 a week towards the interest on a $500k house at 4.5% apr means $1075 a month interest only mortgage if you want it. Nice living if the house is a suitable for for you. Potential sub division?

 

Townsville Cairns prices: ive been expecting darwin to drop but not sure by how far.
The problem with Darwin is that i dont think there is as many office/gov jobs as townsville. Darwin doesnt really have the same infraastructure. Seems to be a lot more construction jobs which is bad for any economic downturn
On the other hand Darwin has more land constraints and housing supply than townsville and cairns so maybe it cancels the other concern out
Buy something at its cost of replacement and you should be good i reckon.

 

Cost of replacement is 650k easy...in any other city it's be a no brainier....

BUT...

Darwin is about to lose around 6000 jobs with the inpex project. Most of these are housed in camps but still...

From a market perspective the question is if all the good things going on up here (close to Asia, multi faceted economy, close to full employment, higher wages and lack of land) make up for that.

The market has seriously started to allow for the end of inpex. Northern suburbs are down 15 percent. Palmerston is down 20 and inner city apartments are down 30 percent. It's carnage...

Elevated in the northern suburbs is the safest spot. The question is if that "safety" is relative....

Then again, northern suburbs are all old....this house is essentially new and has a good income stream as a bonus. It's close to the beach, uni, shopping and public transport. All the things we all look out for in a property.

It's a photo finish....

 

So are you buying it?

 

Sometimes you just have to take a deep breath and jump.

You have done your research and chosen this property as good, if not great, value.
You say it is for a PPOR, and so long as you plan to stay there for 5-7 years that is another tick.

It has the added rental income, either permanent rental or Airbnb.
Marg

 

I should of added cost of replacement in post construction boom economy
Makes a big difference to the cost - as im sure you know
Hard to comment without seeing it though

 

You are right. Offer in on a contract. All the seller has to do is sign it.

Breathe in....breathe out....

 

Well done!
Fingers crossed!!
Marg

 

I'm not buying it. Got gazumped at the last minute.....

Still....learning heaps everytime this happens.

 

How about posting the details now it has gone
Cheers
PP
Moving to Tipperary Waters next year!

 

Bad luck

 

@hammer Would it have helped to place a $10k cheque with your offer ? Was the other much higher ?

 

It's not all bad....I reckon the fact that I am getting gazumped means that I'm on the right track. Onward and upward.

 

There was nothing much I could do in this case. The sale was essentially a foreclosure. The owner was dying under a mountain of debt and working 3 jobs to service it.

This meant that no one could contact them. I believe the owner was also coming to terms with their situation.

I offered checks, cash, speed...the works. But we couldn't reach the owner to seal the deal. While this was going on, someone did their building inspections and provided a better offer.

It was just bad luck..

I was not going to offer more than 510 in any case. Any more than that and SANF goes out the window.

 

Looks like rents have taken a big discount as well


Cheers
PP

 

They sure have...but this is all coming down from the craziness that we experienced a few years ago.

It's getting back to a sane level now. Still got a way to go I think.

 

So Hammer,

What did you end up doing?

Stuey

 

Signing a lease for another year.

I think I may have dodged a bullet.

 

My understanding is the Darwin market is depressed same as Perth market, where I reside, there are bargains every day of the week because people are losing their jobs, economy is stuffed. In fact if prices are still falling which is the case in Perth what is a bargain today will be expensive tomorrow if this makes sense.

 

I think so.
The only saving grace you have is the fact the it will be your primary residence so I expect you would not be selling until another cycle at least??