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NSW Granville sold for $1.53 over reserve

Discussion in 'Where to Buy' started by jins13, 26th Jul, 2015.

  1. jins13

    jins13 Well-Known Member

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  2. willair

    willair Well-Known Member Premium Member

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    [​IMG]
     
  3. Tekoz

    Tekoz Well-Known Member

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    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.
     
  4. sash

    sash Well-Known Member

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

    WinDyz. Well-Known Member

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

    Tekoz Well-Known Member

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    @WinDyz. bro,

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

    sash Well-Known Member

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    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....

     
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  8. Jessproperty

    Jessproperty Well-Known Member

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    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.
     
  9. sash

    sash Well-Known Member

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    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.

     
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  10. WattleIdo

    WattleIdo renovating Premium Member

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  11. jins13

    jins13 Well-Known Member

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    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".
     
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  12. Jessproperty

    Jessproperty Well-Known Member

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    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!
     
  13. jaybean

    jaybean Well-Known Member

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    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.
     
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  14. Scott No Mates

    Scott No Mates Well-Known Member

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    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.






     
    Last edited: 26th Jul, 2015
  15. monalisa

    monalisa Well-Known Member Premium Member

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    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.
     
  16. WinDyz.

    WinDyz. Well-Known Member

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

    beachgurl Well-Known Member

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

    sash Well-Known Member

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    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!



     
  19. monalisa

    monalisa Well-Known Member Premium Member

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    I am not defending the purchase :)
     
  20. sash

    sash Well-Known Member

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    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...

     
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