WA Did I get a Bunbury bargain?

So I just purchased this https://www.realestate.com.au/property/12-wittenoom-st-bunbury-wa-6230
(Subject to finance approval) for $430k

This property was a Mortgagee sale and sold last in July 2018 for $516k
I plan to subdivide off the rear block at 245m2 and sell it, then retain the front house as a rental property for the next 5-10 years. The front house should be left with approx 450m2

I went to council first and confirmed - No heritage value, zoned R40 CBD Mixed business.

Thoughts?

 

Congratulations.
A bit late now you have brought it.
Nice inner city location

 

Interesting location with backpackers next door. Maybe you could lease the subdivided land to them as carpark space

I can't see a sale in July last year for it. Was it an offer that was accepted but the deal fell over? I show it as last sold for $590k in 2011. Noting at that time it was on the market for 260 days and started at $720k and eventually accepted $590k. This time it's been on the market for 669 days and started at $590-620k and ended up "Offers over $430k"

I'm not sure what I think of it. Selling off a block of land is a good way to get the value down even more - watch out for subdivision costs and GST however. How much will it rent for?

Who knows what it will be worth in 5-10yrs. It certainly hasn't gone anywhere but possibly backwards in the last 8yrs but the past is not an indicator of future performance.

 

Bunbury nightmare.

 

Geez. I don’t know the bunbury market well. But $430k for that??

I would be question the ‘value’ there.

What’s would it rent for?

Blacky

 

No heritage value, zoned R40 CBD Mixed business.
$620 m2 within a short stroll to "cbd" of Bunbury and the beach. Other areas of Bunbury land sells for more than that.

I knew people renting in that area. It seemed like a nice area to live and rent wasn't cheap for the old house they were living in but they got rent paid by work.

 

I have seen the $590k listing from 2011 but check this one out -
reiwa.com - 12 Wittenoom Street, Bunbury

Bank must of repossessed soon after as I've been watching it on the market for several months.
One street back from Victoria street (Main CBD street) and short walk to the beach at the end of the street. With a bit of tidying up.....Hopefully get $350 pw rent and then sell the back block for approx. $200k - $250k once subdivided.

 

I'm not sure that sale went through - simply because it takes a long time for the bank to repossess and the timeline doesn't really fit that.
I've got access to rpdata which should show all changes of ownership.

 

I am not an expert in Bunbury though I have been here many times and like the place.

Bunbury house market has been declining the past many years. Based on facts and figures, the likelihood of this to continue seems likely. So if one is to buy houses here for investment, wouldn't it be better to hold on your bullets and buy later, where more mortgagee houses might be on sale and prices could be even cheaper?

If I were to buy in WA, I think Perth will be the more obvious choice. Perth should be the first place to see growth if recovery is to happen in WA. Bunbury, Busselton etc will follow and that could take a long time still..

 

Nice spot. RE the backpackers next door; although probably not too rowdy (only been there once), beware that guests stay up drinking out the back every night of the week.

 

Hi Shane, just following your post and curious to know why it is up for sale again?