NSW Urgent sale price below land value

Discussion in 'Where to Buy' started by CK_Invest, 30th Apr, 2020.

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  1. CK_Invest

    CK_Invest Well-Known Member

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    Hi

    I have come across a property where the sale price appears to be less than what nsw gov land value has it valued at

    Is this common?

    Would it appear favourable from lender valuation view?

    Any possibility I can reduce my land tax based on lower transacted price should I purchase?

    Cheers
     
  2. Trainee

    Trainee Well-Known Member

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    Why is it so cheap? You want a reason. Uninhabitable building, seller has financial issues, death divorce, weird property, etc
     
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  3. ashish1137

    ashish1137 Well-Known Member

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    Is this common?

    Yes.

    Would it appear favourable from lender valuation view?

    May be.

    Any possibility I can reduce my land tax based on lower transacted price should I purchase?

    Yes, file for review but like opening can of worms.

    Regards
     
  4. CK_Invest

    CK_Invest Well-Known Member

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    To add some colour:
    It seems to be deceased estate and
    Within 10km of Sydney cbd
     
  5. Stoffo

    Stoffo Well-Known Member

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    Oooh, I will bite:p

    Multiple homicide on site yet to be disclosed ?
    Contaminated land with a rectification order ?
    Above a proposed tunnel with ventilation outlet next door ?
     
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  6. ttn

    ttn Well-Known Member

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    Never know - could be the bargain of your ever purchase ;)
     
  7. Car tart

    Car tart Well-Known Member

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    The worry is that every RE agent has so many “cashed up friends” that he could offer a truly undervalued property to, that unless you are one of his very close friends, I would be triply careful that the bargain you thought today does not become the money pit of tomorrow.
    I buy 2-3 properties a year worth over $2 million each and sell much the same value after development, but still don’t get offered the best buys as these go to the big end of town clients that would buy and sell $100 million plus a year.
    I would see only what they reject as poor value.
    So take care that you havent missed what others have seen.
     
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  8. Yamas

    Yamas Active Member

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    If it is in a knock down condition, the cost of the demolition and removal could effectively be built into the price. i.e. it is essentially priced as vacant land, and it would be better if it was vacant land, but they have built in the cost of demo and removal of the existing dwelling. Contamination also comes to mind.
     
  9. CK_Invest

    CK_Invest Well-Known Member

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    thanks all, based on the responses it does seem its not so common unless there's an issue (e.g knock down required, land issue, environment, issue with owner eg death)

    this reconfirms my suspicions and i will check all the above, thanks!