NSW Townhouse in Marrickville for $570k?

Was browsing through the Sydney Auction results and noticed this property sold for $570k (page 10 of PDF) 5/137 Petersham Rd - 2 Bed Townhouse @ $570k - Sold

http://www.realestate.com.au/property-townhouse-nsw-marrickville-120331821
(even though it was advertised for $580k+)

Anyone here attend? I don't think i've seen an auction where the price is listed as $xxx+ and it sells below that amount on auction day.

@Steven Ryan and @Depreciator I know you guys keep an eye out on Marrickville properties. What happened to this one?

 

I looked at that a cpl of weeks ago (ie online) as it caught my eye. I wonder if some problem with the property was found / evident...?

 

$570K is cheap for Marrickville. More to the story? @Steven Ryan

 

Well spotted. I'm not in the market for over heated Sydney property, but would definitely consider a 2 bed Inner West apartment for under $600k.

 

Wow does seem like pretty good value at $570K. I live across the road from this, but didn't attend the auction. Location wise, it's smack back in the middle of station and local shops. Although a lot of traffic noise on that road where the house is, and doesn't have a car spot which is a bummer. Nevertheless still a decent buy.

 

Wow that's a beautiful townhouse. Wouldnt even think 2 bed apartments would sell for that little. Mustve had some structural issues

 

It says it needs a reno but the interior looks fine. Maybe everyone thought it was too good to be true?
Would love a place like that. Must be more to the story ...?

 

@neK, @larrylarry, assuming no major structural issues that is a very good buy. Bit of road noise and some stench from restaurant only real downsides.

With only 5 in the complex, I do wonder if there's a big levy due or something else hidden beneath the surface.

On the topic, I had a squiz at this yesterday–I (and friends) own multiple in the same complex (awesome location): http://www.realestate.com.au/property-apartment-nsw-marrickville-120419841

Very short campaign and motivated vendor.

Agent told me interest was around $500k.

I laughed.

But not many people have inspected so it could be a damn good buy. The vendor will be selling on the day and I was led to believe they'll be happy with anything in the $500s.

$600k would be a steal. It's not perfect (the gun-barrel hallways in the units with this floorplan are such a waste of space) but hey, might be worth having a crack just in case.

Oh yeah, it's not 100m from the train. It's 350m.

 

Are you giving it a crack?

 

I just don't fancy trying to get a bed or anything more than a single mattress up those stairs.

 

I wouldn't have used the location shot with the HV transmission lines.

 

@larrylarry, no. I just bought in Brisbane. Done for now.

 

Looks like the photos could be a bit deceiving and it's actually very small? My (VERY) rough calcs indicate it can't be more than 50 or 60m2? (interior)

 

It's pretty cosy because the hallway is a total waste of space but very acceptable for a rental around the area. The living space has floor to ceiling windows which help open it up a bit. From memory those floorplans are about 64sqm incl. dead space.

My two bedders in the complex are 72sqm and 66sqm respectively but open plan which makes a big difference.

 

There must be some issue with that property, or it could be haunted by evil spirits ?

 

Even with high strata fees that's dirt cheap. Would even be cheap if that was in Parramatta

 

So on Mr Ryan's recommendation, I checked this place out today and bid.
There were only 2 other bidders. Place was ok, could probably rent it out in its current state and pick up $480 to $500 tops. I was hoping to pick something up for cheap
(Got close! Thanks Steven for the recommendation )

The strata was a concern though. Strata was $587 for admin and $100 for sinking. I went through the strata report The admin fund was in NEGATIVE. There was also a special levy for painting the entire building inside out which had been approved. The pool was emptied out and maintenance was being performed, unsure if the special levy had come out yet or whether it was it due to come out. Agent was a bit coy on this one, I didn't get a chance to have a thorough look through the strata report.

Also, this is the first I've seen where the there are 3 strata plans (each for one of the blocks) that then share common property. I would have expected a single strata plan for the site.

Anyway, the 3 bidders were

Late 50's asian lady with a lebanese looking partner
Young 20's girl (FHB) who had her whole family with her
Me

• Took a while to get the opening bid. The FHB's dad opened with $350k
• Obviously rejected and no one was willing to offer more. Eventually it started at $400k.
• They were only taking $50k bids, So that took quite a while to get the next bid.
• 10 mins or so past, it finally got to $470k.
• So i jumped in offering $1k bid, but they rejected, the FHB's dad did the same and they rejected. Tried a couple more times, still rejected.
• I finally decided to offer $5k increment because it was going no where.
• I finished up at $555k, Asian lady finally upped her bid to $560k.
• I told them I was no longer interested (my calculations indicated that $555k would the cut out point otherwise there were better opportunities to be had elsewhere).
• At this point me and the FHB were out. We made that very clear. I started to have a conversation with the FHB's dad about it.
• Asian lady then decided to bid against herself (with the agent's suggestion) to go up to $582k. Mind you she was already the highest bidder at this point. Me and the other bidder were simply hanging around to see what it would finish it.
• Agent then managed to coax the asian lady to up her bid again, so she upped to $585k and it was sold.

My wife reckons it was my fault because I was acting like a a-hole (I was squatting like Asian's do and countering her every bid seconds after she made it), which in her opinion made the Asian lady keep bidding as I was "disrespecting my elders - by squatting". In hindsight it was probably true

I think the reserve was $600k, but they must have decided to lower it after realising there was no interest.

 

Thanks for the update. And way to keep your cool and not go over your price.
Considering the issues you mentioned, did it seem like a good buy at that price?

 

Not for me. Otherwise I would kept upping my bid.

I valued it at $550 initially, but with the issues, I would have dropped it down to $540k (just factoring strata levies).

If it was top floor I probably would have paid $585k for it, but this was ground floor without direct sunlight