NSW FHB Alexandria 1br $749k - did I overpay?

Discussion in 'Property Analysis' started by lucidity, 5th Dec, 2020.

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  1. lucidity

    lucidity Well-Known Member

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    I won the following property at auction today, $749k. There were 18 registered groups; although only three groups (me inclusive) made bids.

    302/123-129 Wyndham Street, Alexandria NSW 2015 | Domain

    50m^2 internal space + 17m^2 balcony + 1 parking space/storage. Top floor, north-east facing. There are 35 units in the block.

    Someone yelled out $725k, then another couple $730k. Me $735k, them $740k, me $745k, them $746k, me $749k, and that's where the hammer fell. My personal limit was $753k.

    Another 1br in the unit, although second floor and with a study and greater internal area at 65m^2, sold for $764.5k in Oct last year.

    Do you think I overpaid for this property?
     
  2. Utrade1234

    Utrade1234 New Member

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    Probably but does it matter now? If you're happy with the place and can afford it, why care if you overspent or got a bargain?
     
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  3. Ike Sander

    Ike Sander Member

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    You bought it for less than what you prepared to pay for it. It's time to celebrate.
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Normal Buyers remorse :)

    In a real auction, the market is the market is the market, there is no " over pay" ??

    ta
    rolf
     
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  5. temporun

    temporun Member

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    Was this your first auction?
     
  6. Momentum

    Momentum Well-Known Member

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    Ouch you overpaid BIG time :(
     
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  7. Shogun

    Shogun Well-Known Member

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    Market value doesn't mean that is what it is "worth"
     
  8. lucidity

    lucidity Well-Known Member

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    How much did I overpay by? :(
     
  9. Trainee

    Trainee Well-Known Member

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    But if market value is always higher than what someone thinks its worth?

    When did property sell for what it was worth? And not with hindsight. With hindsight, was market value really above worth, or the opinion of worth was too low?

    is it better to overpay compared to worth (whatever that means) than not buy at all? How many overpriced cycles do you want to sit out?

    Not knowing anything about the property btw.
     
    Last edited: 11th Dec, 2020
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Overpaying is a feeling you only get when it falls in value. All property is worth less than what you pay due to transaction scosts like duty, legals etc
     
  11. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Given you won the property at an auction with active bidders, then you paid market price so in theory you can't have overpaid.

    Did you get good value? Well its subjective and depends on what its worth to you. It looks like a nice modern unit, good natural light, great aspect, carspace, ample storage, usable balcony - plenty of reasons that it will make a good home.
     
  12. Truly Exotic

    Truly Exotic Well-Known Member

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    its been exactly 12 months, how is the OP feeling now?
     
  13. Trainee

    Trainee Well-Known Member

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    Looks like it's gone up maybe 10%. Though that's in the context of Sydney houses up 30% in the last 12 months.
     
  14. jaybean

    jaybean Well-Known Member

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    But if he couldn’t afford a house it’s a moot point.
     
  15. Skinman

    Skinman Well-Known Member

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  16. Rich2011

    Rich2011 Well-Known Member

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  17. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    And essentially south facing unlike the OP's one that is bang on North facing.
    The OP's one is smaller & better complex too and not on Botany rd! Strata going to be much lower, better appointed inside. A minute walk to the large Alexandria park for a bit of fresh air. Definitely OP's unit is my pick of the 2!
    In hindsight, looks like it was a decent buy, not something to regret I would think.
     
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  18. jaybean

    jaybean Well-Known Member

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    Agreed. North facing is worth a TON more than south facing, it's not even comparable.
     
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  19. lucidity

    lucidity Well-Known Member

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    Feeling quite happy :) North facing has been wonderful for capturing all the sunlight, it's definitely a considerable quality of life improvement.

    Unfortunately Wyndham St is still quite a busy road and it can get very noisy with all the trucks. I also have no need, or desire, to live in Alexandria now that our workplace has gone permanent remote only.

    I will be looking at upgrading to a townhouse or even house in the next 3-6 months, further away from the CBD, while renting this one out.

    No regrets.
     
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  20. Trainee

    Trainee Well-Known Member

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    While its unfair to do it with hindsight and sydney going crazy last year, could you have bought with more land content last year? Its worth analysing your past decisions to make better ones in the future.

    With your financial specs you will likely be rich anyway, but better decisions will make it faster.
     
    Last edited: 12th Jan, 2022