NSW Granville sold for $1.53 over reserve

Hi,

What can I say, WOW!

http://news.domain.com.au/domain/re...-rundown-granville-house-20150725-gikc9t.html

 

Yeah, anywhere near Parramatta is surely to be a profitable area.

So if you buy anything that is within your budget today it will be a great investment for sure.

 

The arse whooping is getting really serious.....

 

How's that an arse whooping? It's R4 rezoned... Seems pretty normal. Developer will probably build an apartment there

 

@WinDyz. bro,

Perhaps @willair posting above is interpreted as the Ass Whooping Device according to brother @sash .....

 

Mate the developer is getting in late in the game. By the tame he gets a development approval...and sell out the plan...and pople buy...either he or the buyers will be holding the can.

Dumb....dumb...dumb....happened lasy cycle also....

 

The article says there were 5 registered bidders who were developers....what did they expect what was going to happen! Some agents have no idea what they are sitting on! It's not that hard to look up zoning, building Height allowance, and FSR. If the agent was smart he could have recommended the sellers to put a DA in for a block of units and then sell it for them.

 

Jess...I think the agent acted in the best interests of the client....why?

Because to put a development approval of expensive and given the client was an elderly lady...do you think she would have the ability let along the cost and stress of doing this.

The developers who bought this are probably a bit new..as thry have left it a bit late. Will be interesting to see what happens.

 

Yes no surprises with Granville. Just happening a lot sooner than I expected. A highly populated area with lots of immigrants and lots of infra structure. Leave the snobbery at home - had to happen sometime. Next stop Clyde.

 

http://news.domain.com.au/domain/re...astle-hill-to-developers-20150723-giisln.html

There is also some owners who are doing this in Castle Hill. I really think the real estate agent is way off with his figures.There are many conditions in place (I was told the apartments can only be 4 levels, certain size and etc) for this area and I think it would be difficult for a developer to break even if they did buy the blocks at three times the value.

"Imagine getting nearly three times the value of your house. It's amazing." and "One of the homes within the block sold for $1.84 million last month, so it is expected each home will sell for considerably more than that".

 

Yes it's true, I just think people don't realise the maximum potential of their properties....I think it said offers over 1mill so the agent didn't know either.

Maybe the agent did mention it and she didn't really care at this stage and would have been happy with what the reserve was...

I'm happy for the sellers, that is life changing! And the buyers will make money eventually. I saw those drawings for the Parramatta CBD in the future so all looks bright out that way!

 

There articles are stupid. Occasionally there are genuinely incredible prices which warrant an article but this one was rezoned. Nothing to see, move along. Those journalists must really be short on stuff to write about.

 

What is it about this market? Are uneducated buyers or less educated agents the problem.

Regardless of the impediments on the block (easement), the DCP & LEP would be clear as to the scale, height, bulk & FSR.

The block is close to 1500m2 and would be at least a 3:1 fsr ie 4500m2 of built space ie 30 units or less than $100k/site. (I am being very conservative).

This article is purely newspaper sensationalist hype! Any respectible agent would know the approximate yield and site value thatba developer is prepared to pay.

This is underquoting as the agent would be hard pressed to find comparables at the advertised figure.

 

Was speaking to an agent we know - apparently can put on 22 units on this site (though need to acquire next door one too). Works out to be $127k per unit.

 

Exactly... They can still make profit out of it

 

Wasn't there some sort of easement in thd block so the agent didnt want to hype up the full potential of the site?

 

If they acquire the other side also...lets say another 2m for 22 units?

Really?? that is more like 220k per site add to that 280k for build, hold, and marketing costs. Can you really make money at $500k per unit??

Remember there will be an allocation of 1s, 2s, and 3s. Do you think that the bank will val a 1 brm unit for 550k in Granville...you can buy in much better locations for that price!

 

I am not defending the purchase

 

Not saying you are....just saying that this was probably bought by a developer with stars in his eyes.If the market turns...he will loose with house.

I picked up a couple of properties exactly this way when banks bankrupt the developer complete and sell on usually very cheaply...