NSW How much is my property worth?

Ok.

OP, you overpaid by...

 

I think you have overpaied,
14A WARRANGI ST, TURRAMURRA NSW 2074 land valuation in valuer general is 2.5mil
your property land valuation is 1,4mil
Hope this helps

 

14A WARRANGI ST, TURRAMURRA NSW 2074 is sold for 1mil in 2001
your one is sold for 0.9mil in 2004

maybe you did not overpaied, just the other guy find a bargin

 

Didn't buy at auction due to FOMO; it was private treaty during lockdown, very low stock.

I have been following all auctions during this area during lockdown and all of them were absolutely crazy. In addition, this was the period where a couple properties sold within their first few open days. Within the span of six weeks, I saw comparable properties go from $2.2M to $2.425M.

So it was an absolutely crazy market during that time, and I think I knew the house was only worth ~$2.7M - ~$2.85M at that point in time, but I realised if I want to buy prior to auction it'll have to be a strong offer; and I thought that by the time the auction would happen, it'll go into $3M; so that's why I put into a $2.925M (rejected) -> $3M (accepted) offer.

Equity in property: 40%; the remaining 60% is loan. It is cashflow neutral; interest only 2.99% variable. Currently, my account is 100% offset.

Typing this all out has made me feel a little bit better; I made an offer based on market conditions and information I knew at that time with a bit of FOMO, and a bit of (now incorrect) expectation that there would be another post-lockdown price surge.

IMO I reckon the current house probably has a value of $2.85M - $3.0M in today's market (if you disagree feel free to spitball your estimate), so did I overpay, yes, but I overpaid during a market where you had to overpay if you want to settle; except I was one of the last ones before it became a little bit more sane.

 

As a buyers agent last year it was about securing properties for clients, remember price expectations were being reset on a weekly basis due to new highs being reached. Stock was at such a shortage and there were plenty of buyers needing a new home. Maybe you did pay a bit of a premium in order to buy but its in a number of school catchments, big block, close to transport so those investment factors always stack up. Without knowing the background to the property shutting it down prior to auction with a strong offer was a great move. Most properties were selling between 15 - 20% over the guide which makes going to auction a wildcard move especially if you were looking for a while. So you couldve had the scenario where you had missed out and may still be searching.

Hope that helps

 

With 100% equity (the loan is 100% offset !!) you have a excellent equity buffer so that issue is different to say someone who is a first buyer who buys with no (or negative !!) equity and then it falls. And what goes down comes back up over time doesnt it ?

You only ever "lose" on property if you sell fit or a loss. If you sell it at cost you still lose a bit at that price with the acqusition costs and selling costs.

Like you say - what can you do ? You bought at the top (at that time) Its what you had to pay on the day. Lender vals are not like auctions or a family who say "I want it". In 15-20 years any thought of overpaying will be trivial or not even a memory. You wont regret the choice if you picked well. Its home.

 

Thanks Dan, your post is really helpful and matches my experience really well. Price expectations were constantly being shattered, and yeah, big premiums were needed to secure before asking (and auctions either raised ridiculous prices or went back into the market). And yes, I was looking for 2 months at that point, with $3M of cash sitting in the bank earning nearly zero interest while property was going up ~3% per month.

Had it gone to auction during market conditions at that time, I would have expected it to land in the $2.9X or $3.0X range. Could I have secured a better deal by waiting? Yes, absolutely; and I'll learn from that experience, but it doesn't seem like I bought a $2.5M house; maybe a $2.8M house at worst imo.