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signs of people rushing into the market and they are now facing the consiquences?

Discussion in 'General Property Chat' started by sumterrence, 13th Aug, 2015.

  1. sumterrence

    sumterrence Well-Known Member

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    Asking for $750k
    http://www.realestate.com.au/property-house-nsw-quakers+hill-120286341

    Sold for $715k 6 months ago
    http://www.realestate.com.au/property-house-nsw-quakers+hill-118778159

    I remember I looked at this property while I'm shopping for my PPOR at the beginning of the year, it look OK from outside but the internal is very small and it is super close to the next house that you can basically touch the wall from your window.

    The ad also mention that it is now rented for $550/wk, this seems like an irrational investor where he thought price will go boom and turns out it's going side ways instead while he have had a massive debt against the house that it is not worth it to pay those extra repayments, and he wanted to get rid of it so badly that he is making a lose with this sale, or best case scenario a break even.

    And good on the selling agent double dipped on this property within 6 months for sale comms.
     
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  2. Bayview

    Bayview Well-Known Member

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    This might be a case of the owners having had a life curve ball that has smashed the cashflows for them.

    The rent would be massively cashflow neg too - unless there was a large cash deposit..

    One swallow doesn't make a summer.
     
    Last edited: 13th Aug, 2015
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Last edited: 13th Aug, 2015
  4. sumterrence

    sumterrence Well-Known Member

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    So maybe time to put in some low ball cash offers hahaha
     
  5. sumterrence

    sumterrence Well-Known Member

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    Yes I agree there should be a good 90k equity there, but if you have been there, the house is located within a villa with a bunch of townhouses with a shared drive way, so I'd say it is not entirely a stand alone house, also the gap between each house its just shocking, and that's the main turn off for me.
     
  6. 2FAST4U

    2FAST4U Well-Known Member

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    Even if the owner manages to sell it for 750k they still would've made a loss.

    Stamp duty on a 715k property is $27,994 in NSW. Than add selling costs of approximately 2%, which would be $16,5000 on a 750k sale. So that's already a 9k loss let alone the interest.
     
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  7. TMNT

    TMNT Well-Known Member

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    anyone trying toshort term hold/flip in todays market of sydney, is either gutsy, experienced or stupid
     
  8. Biz

    Biz Well-Known Member

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    Stephen Brodie, Agent extrodinaire, is loving life.
     
  9. jins13

    jins13 Well-Known Member

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    I have seen properties for sale similar to yours, however the reason for sale was due to the vendors divorcing.
     
  10. AlbertWT

    AlbertWT Well-Known Member

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    Could that be also sign of Sydney west market slowing down ?
     
  11. chylld

    chylld Well-Known Member

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    Doesn't seem too bad to me?

    [​IMG]

    For budding "journalists" looking to write an article on the Sydney house bubble bursting, yes it's a huge sign! ;)
     
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  12. sumterrence

    sumterrence Well-Known Member

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    The photo doesn't do justice ;) wait until you walk inside the house!
     
  13. 2FAST4U

    2FAST4U Well-Known Member

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    Sydney's South West is definitely slowing down.
     
  14. Tekoz

    Tekoz Well-Known Member

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    @ProperTikus and @2FAST4U I believe it is the sign of fear in the NSW investor and more people focusing to invest somewhere else.

    Sydney Southwest is another blue chip suburb, because most of friends who bought House (existing and new H&L) have said that it is the next suburb to be growing fast.

    Glenfield, Jordan Springs, Edmondsons Park, and Oran Park are the new suburbs that is recently opened with good looking house. The infrastructure is getting better and soon it will be like Parramatta as most of them have said to me.

    Surely those people can't go wrong in purchasing it last year and few months ago. Plus it is near Campbelltown one of the large CBD area in Southwest.
     
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  15. larrylarry

    larrylarry Well-Known Member

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    So @Tekoz have you bought any yet or waiting for the market to come down?
     
  16. Tekoz

    Tekoz Well-Known Member

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    @larrylarry
    As per the Expert suggestion if I buy in NSW, I must wait for another about 2 years where those Off The Plan property is put back to the market for a bargain price.

    in QLD, I must act now to get better yield and Capital Gain in the next 5-10 years.
     
  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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  18. larrylarry

    larrylarry Well-Known Member

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    Qld does sound like the place to be favourite right now. Where does your research bring you to? Logan?
     
  19. Tekoz

    Tekoz Well-Known Member

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  20. Leo2413

    Leo2413 Well-Known Member Premium Member

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    AlbertWT likes this.