Sign of the times - Winners at auction forfeiting small deposit?

Although this is in a growth zone it is also within the designated area known as ACZ (Activity Commercial zone) - meaning you could technically do much more than a growth zone. You could have like a dental clinic and a radiology at the bottom leased out commercially and build like 15 apartments on the top. There were 2 of the street that sold for 1.81mil and another 1.6 mil I believe for 600sqm.

 

Man that is a windfall lol. I call it lucky...

A lot of apartment deposits get lost this way, just rare in houses/auctions. Mainland China blocks money flows, buyer is in serious trouble but with apartments they usually negotiate a smaller loss.

 

79 Alfreda got passed in because the 80 Alfreda which sold for 1.8mil, purchaser cannot get finance. Banks only value it at 1.2 mil. Purchaser was from sydne. He wont be able to settle!!! Word gets around fast. Agent is trying to talk to the underbidders, but no one is biting for they know they wont be able to get a loan as well.

Word gets around fast. A few months ago 79 would be a bargain at 1.5 mil. Now its back to 1.2 -1.3mil.

Was it passed in with vendor bid?

 

More like 3 million in 2015.

I flew all the way there at the time to bid on auction. 2 commercial retail shops approximately 200m2 each valued by agent 1.5-1.7 M each. Sold for 3 M each.

They were not even on Kingsway either.

 

Shiet. Only Kingsway is busy because it eats off/backs off the nearby Village Cinemas. Only the Southern side of Coleman is decent and half of it...the other half looks completely dead..or so if I remember correctly.

 

You are right.
Those sold for 3 M each are in southern part of Coleman. If I am not mistaken, Kingsway is monopolized by only a few people, and they are jacking up the rental.

 

Wow interesting where did u get this inside info?
I know my Viet friend who is an agent there told
Me the guy was from Sydney and was Vietnamese

 

Lol, wow, although I'm not surprised the banks are conservative especially now. I'm not sure about the bidding - I wasn't there, just saw it online.

 

To be honest these were like 400-500kish not too long ago and how the hell it went from that to 1.6-1.8 mil is crazy in such a short time even though it is rezoned.1-1.2 mil is fair call coz that even beats the top suburbs like Balwyn were the mainland commie $$ are at play

 

If that is happening in Commercial...then what will happen with resi in Sydney ....tax on foreigners...money hard to get out of China...interesting times indeed....

On the other hand...Melbourne might have just gotten a second wind for lower priced resi.....

 

Very interesting on two fronts:

1. I've never seen a bank value the property that low vs what the final auction price was.
2. Of all suburbs I wouldn't have thought St. Albans would be the first one of the dominos to pop. I would have thought it would have been Glen Waverley or Balwyn/Balwyn North where most of the Mainland Chinese have poured ridiculous money into.

If my mate is correct, there was an Asian family who purchased quite a few sites way back in the late 90s. My friend's dad actually was interested and had a look but got cold feet, he said the Glen was dead back then. Lo and behold it is what it is today and that family is now sitting on a goldmine, for how long, I don't know.

 

Not in Victoria. You don't need to show ID to bid. Nor are you required to announce your intention to bid. You can go out for a morning stroll to the shops to buy a litre of milk, stumble upon an auction and think to yourself I don't mind that property... I think I shall buy it as well as the milk.... put in a bid or two... and literally come home the proud owner of a litre of milk and a property.

Quite often the selling agent won't even ask the purchaser to show ID when filling out the contract of sale after the auction has finished. They're always in a rush to get things finalized before they race off to the next auction.

 

I recall from my uni days the lecturers mentioning cases about people winning at auctions and then just walking away. I beleive there is legislation in place which gives the auctioner an automatic power of attorney to sign a contract on behalf of the successful bidder if they refuse.

This is all of no help if you don't know who they are!

 

Well if you think about it something that can go from 400Kish to 500kish to 1.81 mil is like insane. if it was 1.1-1.2Mil it's still ok for a jump that large

I checked rpdata 80 Alfreida St and still stated sold for 1.81 mil. If you check the link below 3 days ago (the agent didn't say much about the house being unabled to be settled (in fact saying the price was anomaly as in huge - for 80, logically if finance could not pull through it would be within the 1st month or so when it was sold in Feb 2017. Also 2 other sales 82, 86 Alfrieda sold at 1.688 and 1.65m And apparently 79 was passed as in not sold (so if it was passed in - where was the successful buyer as initially claimed?). I think maybe more real facts needed than rumours from DOMAIN reporting similar to the 1200% land tax claim on another post









St Albans house tipped to sell for more than $1.5 million passed in

A St Albans house in the suburb’s bustling shopping district that was tipped to sell at auction for more than $1.5 million passed in at the weekend.

The property up for sale at 79 Alfrieda Street is across the road from a house that set a new price record for the suburb when it sold for $1.81 million in February. A month later another property three doors up at 86 Alfrieda Street sold before auction for $1.65 million.

St Albans’ hot property market set the tone in the lead-up to Saturday’s auction, but come auction day only about 40 people arrived to witness the 606-square-metre property go under the hammer.

Bidding started at $900,000 and crept up slowly in increments of $20,000 and then $10,000, before the property was passed in at $1.525 million within about half an hour. It last sold in 1988 for $80,000.

Ray White St Albans agent Lam Nguyen said he was expecting a stronger turn out on Saturday. “I think it was because of the pricing, it restricted a lot of people,” he said. The property was marketed with a sale price of between $1.5 million to $1.65 million.

Two of the bidders were local, one being a neighbour, while the third was a property investor.


The house is a stone throw from St Albans’ shopping precinct. Image: Ray White St Albans

Given the property was comparable in size to record-breaking 80 Alfrieda Street, expectations for another eye-watering sale price on Saturday were high, said Mr Nguyen.

“This is the better property out of the three [Alfrieda Street properties], it’s brick veneer, I’d say it’s a lot more liveable, it’s not just a knockdown house, it’s something you can keep for a while,” he said. “In theory it should be worth more.

“But you never know at auction, you might get more or you might get less, it’s unpredictable.”

Mr Nguyen said while 80 Alfreida Street was similar in size and distance from St Albans’ main shopping strip, its $1.81 million price tag was an anomaly, not a comparable sale.

A number of interstate investors had flown to Melbourne to vie for nearby 21 McIvor Road, which was to be auctioned off on the same day as 80 Alfrieda Street, until the McIvor Road property was compulsorily acquired by Brimbank council at the 11th hour.

This led to a blockbuster auction with about 150 spectators when 80 Alfreida Street was auctioned off on February 13 and finally sold to a Sydney investor, smashing St Albans’ previous price record of $1.1 million.

“I couldn’t use it as a comparable sale… there were factors that caused that price,” Mr Nguyen said. “I think the owners got very lucky on that occasion.”

He said Ray White St Albans would open up negotiations with interested parties for 79 Alfrieda Street this week.


The land is zoned for residential growth, which allows for four storey developments. Image: Ray White St Albans

Two other St Albans houses failed to sell on Saturday. The properties at 74 View Street and 42 Walmer Avenue passed in at $650,000 and $740,000 respectively.

St Albans’ median house price in the year to March 30 had climbed to $600,000, up a staggering 25.8 per cent.

 

Well sometimes seeing some of the articles coming out (logically you have to question them too).

1. Some 50-100 bidders (can't recall now) in a property in Ringwood (I was there - were only 5)
2. 1200% land tax on some guy who had 9 commercial properties crying a river.
3. Passed in properties pictured as bidders who walked away after the sale.

 

1. WTF? 45 were silent no bid bidders? LOL...I used to attend Glen Waverley auctions now and again when I was visiting my folks on at the weekends. At best there were 4 groups participating, 5 would be an absolutely rarity in most cases, with 2-3 dropping off when it got serious.

I agree with your comment about St. Albans and such a large jump in a short space of time...fishy.

 

Yeah I know rezoning can generate automatic 50-70% growth CG but this is like 200% in st albans.

yeah but according to the article there were 50 individual or so bidders ( this was a while back)

Sensationalized articles about some old guy losing his nest egg with 1200% land tax for 9 commercial properties in brighton assuming valued 20-30mil and also assumingly ranking in say 40K per month in rental (is not a lot for 9 commercial properties). Seriously? I did speak to some contacts some of those alfrieda ones have settled according to them.

 

Welcome to 2017, news is plenty and fake...

 

Got it from an agent as well. He valued the prop at 1.2- 1.3m max. Told me the winner and also underbidder really did not know what can be done to the block. They were just landbanking.

 

Suicidal in this market, were they local or overseas?