NSW How much is my property worth?

I bought this a couple months ago during the lockdown haze when there was little stock, and I just wanted to get the buying process over with.

https://www.domain.com.au/46a-kissing-point-road-turramurra-nsw-2074-2017185708

How much is my property actually worth? Currently rented out for $1350pw.

 

This is probably about the same price you bought it for. Sydney prices haven’t moved much in last 4-5 months.

I doubt any valuer would value it any higher if you are thinking of refinancing or equity release.

 

I'm not thinking it would be valued higher, I'm wondering if I overpaid by a lot. I'm seeing some pretty weak sales. For example, this similar property that's on the east side, and is next to an apartment block so high rezoning potential sold for only $3.35M: https://www.domain.com.au/14a-warrangi-street-turramurra-nsw-2074-2017349435 when the price guide quoted by the agent was in the low $4Ms.

So I'm wondering if the property I paid $3M for is really worth $3M... I know i can't do much about it now, but at least, would love to get some opinions on (how much) I overpaid.

 

I don’t think you overpaid - you have a much better location. A quick walk to train station yet not too close to Pacific Highway noise.

I am not sure why the other property was priced at $4m, it’s very close to Pacific Highway and rezoning is going to be tricky unless surrounding properties agree. I think price guide was likely based on RP data valuation which doesn’t take Highway proximity into account.

You didn’t overpay - people are paying over $2.5m in Castle Hill for properties like yours.

 

If you dont plan on selling or refinancing, why does it matter? In 20 years….

 

As above - what does it matter what its worth a couple of months later. There is no definitive answer other than its probably not materially different.

On a circa 2% gross yeild then yes you paid far too much, but I doubt thats why you bought it anyway.

 

If youd bought in 2017, you would have spent 2018 punching yourself. Then….

if you plan on holding, ignore the market.

 

Just for some feedback on the price I paid -- I'm looking to purchase another investment property next year, so it'll be helpful to know if I overpaid and should rethink how I value properties...

Thanks for the thoughts so far

 

Why would you want to do this to yourself? If you're into S&M there are easier ways to get your fix

 

This isn't really an investment grade resi IP with that price and features, it's more like a residence you would live in yourself. If you're chasing cap gains then you'd go commercial or something with development potential at that price. If you have a similar budget for your next investment then think about other options including shares which provide a better return. Otherwise you should punch yourself in the balls with the ongoing maintenance and low yield

 

So this similar property (but MUCH newer in construction 2006; albeit two storey) sold for $3.3M: https://www.domain.com.au/property-profile/24a-wambool-street-turramurra-nsw-2074

4br 3ba 2car vs 4br 2ba no car spaces.

It is the same walk to the train station (12min), although this property is 110m away from the train tracks and so it might be possible to hear the trains.

Looking at these two properties I feel like mine is only worth $2.6M or so... did I basically burn half a million dollars?

 

If this is an investment you shouldn’t be torturing yourself with buyers remorse even before settlement. You’ve bought it, what you paid is the market value, start thinking by about how you can maximise your return of investment.

 

I get what you mean, psychologically I'm someone who seeks closure. I won't really be able to move on unless I feel like how much I overpaid by.

Would seeking a valuation from an independent valuer be a worthwhile endeavor?

 

Don't understand the question, really. If the market value is higher than what you paid, how much did you overpay by?

 

I think the house I bought (linked in OP, 46A) is only worth $2.6M to $2.8M in today's market and I feel like I overpaid by $400k to $200k.

It's keeping me up at night and I'd appreciate some closure on how much I overpaid by.

 

Don't look at the absolute numbers. The percentage is what matters. $400k isn't even 15%. You'll get that back in a few years at worse, don't stress.

 

It's not available in today's market, you bought it in last year's market & don't know what this year is doing.

A house is not traded like shares & it's not public knowledge until it is.

 

Who cares if you overpaid 200-400k, it's only money. It's not like you were going to spend all your money up to the last 100k just months before you die

 

Acquisition costs add at least 2 % to costs to acquire. This is always "lost money" since it exceeds market value. Prudent investors need to weigh up the price they pay and value. If its valued $400K less and you bought at a high price at auction using FOMO then yes you overpaid. But it is 12.5%...But at 200K its 6%....

The issue you havent indicated is net equity. If you own 100% of the property its far less of a issue than if you have no equity and plan to live their long long term.

Its like buying new appliances. You will likely see something cheaper after you buy. Let it go.