Does overpaying in this market bother you?

But it's not 'overpaying'. It's the current market price. In 6 months it could rise 10% above what you paid.

Now you may or may not see value at the current buy in price. But that's a different story.

 

@jaybean just read a pest report for one of the places I was looking at yesterday around the Parkinson, Calamvale, Algester trifecta. It was one of the most thorough ones I've seen to date.
Based on @Sackie s 3 scenarios, it falls under the 10% model however because of the length of minor defects and issues, could potentially get it to 'normal' market price.

Is the potential for termites being 'moderate to high risk' worth the future value add?

 

I think that risk you're seeing is probably because they've spotted a nest near by or some indication of termite activity, like the back fence has been eaten by termites or something. It's not something that would worry me if they haven't made their way over yet. Termites are everywhere in Brisbane.

 

Yup. I was just like him and freaked out when I saw my first B&P report but once they explained to me what that meant I wasn't worried at all.

 

Thanks a lot. Really appreciate that. I was so disappointed seeing that haha and just thought Red flags, however there was absolutely no visible termites on the property which is reassuring.

Just engaging a few builders to establish how much work would be involved in the other defects around the property.

 

Let me know if you need a builder. I used one about 4 years ago and was REALLY impressed, however he's nearing retirement age now and not even sure if he still works.

 

The brother in law is a builder but GC based so just relying on him but would like an independent assessor too.

 

When talking about the overall market level then I think it is right to say everything evens out.

But when talking about individual properties I am not sure I totally agree.

Look at all the different purchase methods, off-market, private treaty, pre-auction offer, purchase at auction. Very likely to be a differentiation in the result.

Then you have things like how motivated is a seller, how motivated is a buyer, etc.

 

This a huge reason why I am a fan of RE. You ABSOLUTELY can, buy below value at times. The markets are not always visible for all to participate.

 

Yep you can definitely get a great cheap buy. Just can’t buy “below market value”

 

Throwing a spanner in the works here then - how do you define cheap? I would say $2million for a 4 bedroom house in Mosman in Sydney is cheap.

If parents decide to sell their house to their kids for half the price of what the comp next door sold for 2 days ago and half the price of what the comp on the other side sells for 2 days later, did the kids buy below market value given they could definitely sell it for double what they paid a week later? Or would you still say they paid market price?

For me, the answer is that it's difficult to pay below market price on the open market. Off market is a different story.

Extreme example, but you get the drift.

- Andrew

 

LoL! I just KNEW you'd reply to this! Glad to see you're on the ball ol chap

 

haha couldn’t help myself!

 

My comment was more an inside joke with
@Sackie. We have been on here and SS for 10 years and have had many “below market value” arguments (all in good fun).
I have no issue with the concept, just the wording. I don’t believe “off market” can be used as below market value. Just doesn’t sit well with me. Not saying I’m correct, just how I interpret it and it bugs me when people say “bought at auction below market value”....

 

Can you explain this a little more? Not quite sure what you mean.

Agreed. If anything is an indication of market value, it's an auction.

- Andrew

 

This weekend's auction were pretty solid. Palm Beach figures were nuts.

Does anyone know whether this ended up selling? Can't get hold of anyone.

49 Browne Street, New Farm, Qld 4005 https://www.realestate.com.au/property-house-qld-new+farm-135477350

 

Personally on my assessment of macro conditions, I’d happily pay 10% above 3 months ago. Previous prices don’t mean overpaying imo.

Simply, I see value just about everywhere I look (sydney/melb) right now even at higher values than last qtr (prices are off where they should be).

 

Sydney 'infill' land across the city has become a lot more valuable since the LRHD kicking in in most councils.

It began on July 1 2020 largely, but buyers have caught on in more recent months.

A lot of the 'big results' on landed sites being reported are simple changes in the utilisation of land kicking in. Mass scale approval changes this big.

Its being under-reported big time too. Plenty of lots are up 20% across the board purely from this, and the macro part is the remaining 10 or so %.

Sydney auctions: Sale price of Earlwood house jumps almost $500,000 in four months

 

Utilising this example only with no reference to other factors then yeah by definition this wouldnt be an indication of market value. Im no statistician but pretty sure this would be considered an outlier, as the property wasnt subjected to the open market.