WA Post a Bargain - Perth

Some in Perth I have noticed are advertised 10% more than the eventual sale price. Agent obviously testing the market.

The one thing you rarely see in Melbourne is a property under offer after only a few days. Agents will normally push a sale at least 3 weeks to test the market.

While in Perth agents boast that a property sells within 24 hours. I wonder if they got the best price for the vendor accepting an offer so soon into a marketing campaign.

 

that is totally dependent on the market conditions. Boom times, it is not uncommon to see Dutch Auctions in Perth.

Downturns.... well we just want offers

 

They only go under offer in 24 hours if the price meets vendor expectations. I went to an open house in Embleton during the boom. There would have been at least 150 people and they got 17 offers that night. The sale price was ridiculous and I am not sure they could have sold it for more with a 4 week campaign and auction. Sometimes an auction process can take the heat out of the property becuase it removed urgency and immediacy. Being able to lodge offers on the spot boosted the atmosphere. It got so crazy it was scary. I actually left because it felt like there was going to be a punch up. Good times!

 

Great point. One of the mistakes vendors make sometimes is thinking because it's a frenzy at the start of their campaign that it will continue and somehow push up the price and they therefore reject the first few good offers. Often the initial frenzy is what peaks the price, almost like some IPOs, before dropping back to more realistic price points. There are many, many stories of vendors rejecting an excellent early offer only to sell for less later.

 

Remember the address? I'd be interested to see what a boom-time Embleton house went for.

 

Of course I do! 3 Gatton Way, Embleton. And there is a correction in my email: 18 offers at the first home open.

3 Gatton Way, Embleton, WA 6062 - Property Details

$552,000. 728m2 block zoned R25. The existing house was in amazing condition for the age. If it wasn't a boom I would have put in an offer for sure. I really liked the house, land and location.

EDIT: incidentally, it was listed for $435,000 - $475,000. I do not think the agent intentionally under-priced it by that much. I was at the first home open and she genuinely seemed shocked by how many people turned up. It seems to me that she just misread the market.

 

re.com current val by corelogic $275-$350k
domain current val says 495k
Quite a difference there.

Looks like a great splitter block though.
Ah just saw on google maps that a huge house put on the back and retained the front one.
Always wondered what buyers think when they see a house built almost right to the edge of the fences on 3 sides like that and if it lowers buyer pool or selling price.

 

corelogic may be valuing the front house only. The original $550k was before it was split.

Holy cow! That's a house! I am not sure but the buyer could have built that to live in. I am not sure I would like it.

 

Not sure about that block of units in Melb but some enquiries I made in inner city Melb have been quite honest with price expectations. Perhaps change in times with some properties struggling to sell lately.

Anyway, assuming if the Melb block of unit price guide is fair, I am keen to hear ppl's view on which is a better buy. My thought is Melb as vacancy rate is lower plus higher yield? On flip side, the Perth property is closer to cbd.

 

auction clearance has dropped, am noticing more properties are being passed in. Times are a changing.... watch over the next 6 months

 

I think this isn't bad if you were handy as it needs a total makeover. If you like waterviews a front deck would be nice to make the most of it. Asking low 6. 107 Goollelal Drive Kingsley WA 6026 - House for Sale #125666182 - realestate.com.au

Or live in it than knock down and build something like this on it. 89 Goollelal Drive Kingsley WA 6026 - House for Sale #127040926 - realestate.com.au

 

This is how people live in newer suburbs, Think Sinagra, South Guildford etc some people are just happy to have everything new on a low maintenance block and in this case with the bonus of being close proximity to city..

 

Do “Mortgagee in Possession” sales generally go for a good price or just the same as any other sale?


72 Johnston Street Mosman Park WA 6012 - House for Sale #127096130 - realestate.com.au

 

It depends on the amount of competition. Lots of competition means a higher price and at that location I will be surprised if there is not a lot of interest

 

Hi all I am a novice and keen to invest in Perth property. just saw what looks like a bargain for a big block of land over 900sqm in Gosnells for under $200k. Zone R30 3 dwellings potential, mortgagee sale. see link below.
102 James St Gosnells WA 6110 - House for Sale #127062266 - realestate.com.au

just wondering if anyone can give a rough guide of how much the subdivision cost will be, ie fees and site connection costs, would $60 -70k in total be fair (for strata title)?

And would each block be valued at $100 - $130k? keen to get insights from more experienced investors. thanking you all in advance.

 

Calling @Westminster @sanj @Aaron Sice.

I am not sure about end values. I will have a dig around and see what I can find out.

 

$60-70k would be in the ball park for WAPC plus headworks connections. What it won't include is:
- fences if that is a condition on Survey Strata approval
- access driveways if that is a condition on Survey Strata approval
- any Council contributions/open space levy which Gosnells like to try on sometimes from my reading on here
- demolition

Other things to consider are GST, income/company tax on profits and holding costs

I haven't checked DBYD to see if the block has sewer but I presume it has - you'd need to check that.

The numbers in my head are looking pretty slim.

 

Many thanks for the feedback Westminster. I suppose I can round up the subdivision cost to $100k to incl fence and driveway. my understanding is only certain streets/areas in Gosnells attract council contribution but I will double check for this address.

i wonder why you have highlighted this separately, is there a potential major issue with sewer as I have assumed it is part of all the other site connection costs such as power and water?

 

Numbers seem to work for a strata & Reno flip

 

Really? How do you figure?

My rough numbers said it wasn't even close.