Somebody is doing a flip near me in Marrickville

They are quoting $1.1m so I wonder if their agency agreement says $1.1m - $1.21m? Interesting to see what it will go for in the end. Might be an interesting reflection of the strength of the market this year.

 

Thought about this thread when I went to see the auction of this flipped property in Burwood.
9 Belgrave Street, Burwood, NSW 2134 - View Sold History & Research Property Values - realestate.com.au

Somebody paid $1.45m for it on 2/11/17 and did some renos to it, today (3/2/18) it got passed in for $1.305m....

 

Oh wow. That's horrific.

 

I know. I feel sick for the vendor, although obviously they will negotiate hard with the one and only bidder after the auction - there's no way they'd be letting it go at that price.

It wasn't a small reno either.

Bidding started at $1.3m, and after many minutes somebody finally did a $1.305m bid. I was shocked that there were no more bids after that. I knew the market was cooling but not to this extent.

 

The market seems to be holding back quite a bit at the moment, unfortunately they don't have a 2nd bathroom or outdoor entertainment area to really appeal to a family.

 

I would have built a carport in the driveway area at the front and turned the rear carport into a nice deck perhaps off the living area or just made it additional garden. It would have cost some money but I think that would have added to the appeal

 

Totally agree, or at least put sliding/bifold doors off the dining room window to a decked area. They spent the money to change all the windows & spray the roof when they should have turned the laundry into a 2nd bathroom, original bathroom into an ensuite, knocked out the cupboard wall and made a bigger kitchen/dining area. Would not have added much to costs

 

Wow. I knew sydney was expensive but that Burwood place is not very impressive. Gobsmacked someone would pay anywhere near that!! on such small land as well!

 

the land is atypically small for Burwood, it's got to be one of the smallest lots I've seen in the area. At the time I didn't even think the the $1.45m price was excessively high. The market was cooling late last year so it seemed reasonable to me, but it seems to have really fallen off a cliff of late.

 

If the vendor was thinking they'd make a profit by flipping it, I actually have no sympathy. It's a high risk proposition and off those numbers and this timing my thought is that the risk of a loss would have always outweighed the possibility of a gain.

Good luck for the vendor to recoup their expenses.... I don't think they'll get it though.

 

This makes you realise how quickly the market changes! It’s just scary...

 

So I went to the Marrickville auction. Agonisingly slow start - I thought it was going to be passed in. In the end it went for $1.26m. Last year they would have got an extra $100k - their profit. I reckon they broke even, which is good.

 

Jeez. Better to break even than make a loss but that is a painful lesson on playing in that market and how real estate doesn't always keep rising

 

You were spot on. Sold for 1.26M. Not great result.

 

'An unforeseen result': Prime-positioned properties sell well in inner west

On the other hand also in Marrickville. Great results but. Much better property

 

This property is actually 2 properties as I understand from article. Making it 1 million per unit. Not groundbreaking ..

 

The agent underquoted that Marrickville property. Great location, big block, it was always going to go for around $2m. Last year it would have gone for more.

 

Tess....this is the new norm in Sydney......lots of this happening....a lot of people in Sydney are burying their heads

The real cause is people cannot borrow as much this will affect prices in places like Sydney and Melbourne.