VIC How much would you pay?

Hi All,

So I have finally found a property that I really like. It's very close to work and I think the area has potential for growth. I went to the open house last week and was very impressed with what I saw. The pictures really don't do it justice and you'd have to see it for yourself.

Here is the property:
7 Vilcins View Epping Vic 3076 - House for Sale #121707394 - realestate.com.au

There is a new towncentre being built nearby as well as a Coles supermarket. The house will be going to auction and the vendors are looking for $650k plus. I honestly think this it too much and was hoping for something around the $550k to $580k mark.

I would really love to get your opinions on how much you'd be willing to pay for this house and whether or not I should bother making a bid.

Thanks

 

If it's the PPR you wish for, then 20-40k extra for the house you want is not unreasonable..

 

Lovely home. I know nothing about Melbourne sorry. But I would get a valuation from your broker, look at realestate.com sold properties etc so you know in your head what it is worth. Then as GG says maybe allow a premium you are willing to pay on top of this.

 

I would stick to your numbers max. around that area.

 

Thank you all for your replies. I should clarify the quoted figure was actually $600k plus, not $650k as I previously stated.

@teetotal your advice is pretty much on par with what everyone else is telling me. The bank says I can borrow up to $800k so getting a loan isn't the problem. Being a single guy I really don't want to overstretch myself so I've set myself a limit of $600k to spend on a first home (preferably less). On the other hand I do love the house and the area that it's in.

The RE agent told me there was another house nearby that sold for close to $700k which I could not find on realestate.com. He's adamant the vendors will not consider anything less than the $600k plus figure. So the dilemma I have now is whether or not I should formally apply for the loan and hope for the best at the auction or just turn up at the auction and see how much it sells for. This way I can get a better idea of how much the next house will be worth and put in an early offer.

What are your thoughts? I appreciate all your feedback!

Thanks

 

I'd find out what the valuer says it's worth and then work out how much above that you are willing to pay.
Also if there is a lot of interest then you may want to consider making an offer prior to auction.

Good luck

 

Hi vtt,

I agree I should get the property valued and will most likely get the ball rolling sometime this week. I should mention that at the open house there was an Indian couple there also looking at the property. They already owned a property a couple of streets down the road but the husband was looking at this property for his sister who still lived in India. He was quite confident it would sell in the high $600s if not $700k and this kind of put me off a little.

On the hand there is huge interest in this property so I wouldn't surprised if the price did go that high.

Thanks

 

Ask some agents in the area for comparable recent sales.
Having a quick look, this recently sold for 590k,

45 Viewgrand Boulevard, Epping, VIC - Residential House Sold

I don't know your land size or this one either, but going buy 4 bedroom, and the quality and additional features, this seems superior to what your buying. Has a butlers pantry, double vanity bathroom sink with extra cupboards etc etc. So without knowing if Veiwgrand boulavard is a better street or not(ask other agents in the area)
I'll take a very rough guess that it won't be over 590k. But, I did say, I don't know the land sizes, and don't have the comparable sales data. So a very rough guess. 500-570.
If it goes to auction, people sometimes do weird things and pay stupid prices, so my guess could be rubbish. Get the other data and let us know your thoughts.

 

Nice house. Has theatre room too. Looks like the auction will reveal the price.

 

That's what I meant when I said the pictures don't do it justice. The house is very spacious and beautifully designed.

I've just done a few valuations online and received mixed numbers. Some say between 500 - 589k and one I just did now says it's worth $480k. I know a professional valuer would give me more precise figures but I'll have to think about this as they can cost upwards of $400. And judging by how much the property at 5 Viewgrand sold for I guess I shouldn't be surprised why the vendors are asking for $600k plus.

Regardless of what I decide to do I'll still go to the auction and report back the final price.

 

ignore ignore ignore online vals, they are beyond uselss and I think they do more damage then help.

 

1. Why would you need such a big house if you are single. I hope you are not being emotional.
2. If not in any hurry, experience the auction but dont buy. I think the place is being overvalued if it is more than 550-570K.
3. If not an issue, go a bit further up north and build yourself a similar mansion for lesser.
4. If you really don't need a PPOR, keep renting and buy an IP which is more cost effective.

 

Hi teetotal,

1. I need a bigger house because my mother (who has a chronic illness) and younger siblings will be moving in with me. A 3 bedroom house would suffice and I can get the little ones to share a room.
2. Most likely this is what will happen. I agree that the property is overvalued but there's not much we can do when there are buyers willing to fork out that much.
3. The thought of buying land a little further north (Wollert) has crossed my mind and I did come really close at one point. If I can't find something decent and affordable I may need to revisit this option.
4. I would much rather buy a PPOR and think about an investment property later. I know not many people would agree with me but I truly believe that rent money is dead money and would much rather put that money towards my own mortgage instead of paying off someone else's.

Cheers

 

don't believe these online valuations.......last year I bought a unit.....before I bought onthehouse was showing its val around 480000 to 500000.......I bought it for 440000....it now shows 460000....do your own research......I do not know where you live or work but looks like too much for area......I am not expert..........so go with your research

 

Thanks UrbanDingo. I'm not relying too much on these online valuations. But considering how much other properties of similar size sold for in this area I wouldn't be surprised if it does sell above $600k.

I live in Mill Park and work at the Northern Hospital. Mill park is a beautiful suburb but way out of my price range for something decent that won't require too much work. I tried to look at Bundoora but was shocked at how normal it was to find houses going for $1 mil and above.

Thanks

 

Amen!