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NSW Penrith area

Discussion in 'Where to Buy' started by npk, 19th Oct, 2015.

  1. npk

    npk New Member

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    I have noticed a house in South Penrith that was sold in Feb. 2015 for 595k. Now it is back on the market with some renovation done (I actually really like this one that's why it caught I eyes when I saw it again this time on realestate.com.au). 2 weeks ago it was listed at offers over 629k. Now it has been lowed down to offers over 599.995. Just wander if the owner would make a loss if it is sold at low 600k.

    I did go to the open house in Feb. There were about 40 groups queuing and it sold in the first open. Now it has been on the market for few weeks already and asking price been reduced. Is it the sign of slowing down for the whole area or just happens to this particular property I wonder. I do feel for the stress of the owner (whether it is OO or investor).

    It is No 2 Christie street, South Penrith
     
  2. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    Definitely be losing reno and stamp duty cost
     
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  3. Inov8ive

    Inov8ive Well-Known Member

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    Sounds like a desperate vendor. Will definitely be taking a hit
     
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  4. larrylarry

    larrylarry Well-Known Member

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    What's your take on south Penrith? I was there last year visiting. Seems like a quiet suburb and nothing stood out for me.
     
  5. Kael

    Kael Well-Known Member

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    So after looking at the house ads, current photos and the old listing photos, it wasn't just renovated now, was it? It was renovated prior to the last sale (February, 2015). Why do they want to get out of the property so quickly? It seems like a decent property. Either way, after stamp duty and real estate commission, they'll definitely be taking a hit.
     
  6. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    [​IMG]

    A not so astute investor in South Penrith who believed the bull run would never end
     
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  7. larrylarry

    larrylarry Well-Known Member

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    Could be anything. Divorce?
     
  8. Kael

    Kael Well-Known Member

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    Could be. First thing that popped to my mind was an investor who's been spooked by the APRA changes and trying to get out now :p But then I realised it's a nice OO home. Need to stop thinking like that :p
     
  9. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    One of the 4 x D's?
    Divorce
    Death
    Debt
    Distance
    .....dunno.
     
  10. hash_investor

    hash_investor Well-Known Member

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    These are signs of slow down. There is no doubt about it.

    I was looking at the Eagle Vale area over the weekend and found a nice duplex advertised for 480K+ original condition, no reno done to this. The agent is having open houses for the last few weeks but no good offers are coming his way. They advertised it for 480K+ and I offered him 450K. He is ready to negotiate for 460K.

    Another very nice villa is advertised for 449K+ and and the maximum offer they have so far is around 470K
     
  11. 2FAST4U

    2FAST4U Well-Known Member

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    It must be a distressed seller (could be a divorce, vendor might have become unemployed and didn't have a buffer etc.). Stamp duty + selling fees will lead to a real loss even if the vendor manages to sell for a higher price than they bought it for.
     
  12. York

    York Finance Broker Business Member

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    Hard to say exactly. Looks like a close one. 595k plus stamps and legals etc =620k. FYI it is currently under contract. Asking for offers above 599k. So say 599k minus selling fees = 580k. We are on the cusp of the peak if not just over it. So there are definately properties going for dead on the money even for properties listed as 'Offers Above'. Some instances have seen offers get accepted under the offers above figure. To add to that, dropping the price by 30k in a short time also shows the desperation by vendor. Any astute buyer will pick that up and hit the vendor where it hurts. So I'll say it sold for the asking price maybe touch over.
    With those points in mind, I'd say this vendor made small loss overall if you factor in holding costs and application fees etc.
    The only logical reason for this would be some kind of DDDD as mentioned by @Propertunity or just someone who has absolutely no idea what they're doing.

    Edit- Thanks @2FAST4U for the correction. i messed up my calcs.
     
    Last edited: 19th Oct, 2015
  13. 2FAST4U

    2FAST4U Well-Known Member

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    The 620k is just how much the vendor would've paid for purchasing costs (595k + 22.5k stamp duty + legal & inspection costs that would easily add a couple thousand more). If the vendor was an OO they would've been paying interest and even if they were an investor they would've been negatively geared losing money. Selling costs = approximately 3% so 3% of 600k is another 18k. A pretty costly experience altogether.

    It's just another example that demonstrates how important it is to be able to hold property and have exit strategies planned. The transaction costs involved with property make it a long term prospect (unless you're developing).
     
  14. ej89

    ej89 Well-Known Member

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    2% selling cost but yeah must be a forced sale
     
  15. 2FAST4U

    2FAST4U Well-Known Member

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    It varies between 2-3% but even if it were only 2% that's still 12k- not a cheap exercise.
     
  16. ej89

    ej89 Well-Known Member

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    You wont find anyone in Sydney who sells for 3%. I see 1-2%+GST
     
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  17. npk

    npk New Member

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    By the look of the photos that were for the Feb sale and now I think they have spent a bit of money on improvement of the property as well. The retreat used to be a store room. New carpet and aircon systems, new carport as well.

    I really liked it when I saw it in Feb but back then the market was so hot that I could not compete with other in price. Plus I was a bit concerned that it has only 1 toilet cum bathroom and it is really hard and expensive to put an other toilet elsewhere in the house to support 3 bedrooms. That is the only down point of this property. I therefore stopped the race at 560k. I was later in shock to find out that it went at 595k. Just a bit over priced in my thought.
     
  18. ej89

    ej89 Well-Known Member

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    According to this it's gone for 639k.
    http://australia.trovit.com/property/house-penrith-south-pictures
     
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