Another auction tonight. More ex govt houses.
13 properties on the market and this time from the SUBURBS!!! An outer but highly populated area.
8 sold, and 5 passed in. Maybe prices too high this time, or investors nervous about possible interest rate increases soon. Although the ones that didn’t sell were the oldest (1950’s) & need of repairs.
Of the 8 that sold I calculated 6 of hem were +ve cashflow. Most were maisonettes. But one consisted of 8 one bed units, and another 14 one bedroom cottage flats on 3 titles.
Unlike the freshly painted ones from the regional centre the previous night, these require mainly painting, carpets and one even had structural defects. It seems that in some area the govt. look after them, and others they couldn’t give a stuff!
One of the properties was actually a sale by a private vendor. He was sitting next to me with his partner. We struck up a conversation. His wife grew up in the area and knew the good & bad parts very well. They were very keen to tell me where to look for good properties.
The one they sold tonight got them $124,000. They bought it 18 months ago from the govt. auction for under $80,000. The husband put in a wall RC air conditioner, alarm, fresh paint & a picket fence all himself. Took 6 weeks. It rented out before he finished the reno. Because it was a stand alone property, the lady who moved in was very happy to pay $15pw more. It is tenanted until July 2004 at $155pw.
So it was propbably +ve cashflow for them. But now as a complete nice package it would be -ve.
I can’t wait for the next govt. auctions when hopefully my trust & finances are in place ready to go.
Keep on looking guys. And remember to get of the internet at some stage and talk to people, whether they be RE agents, PM’s, investors at auctions, company or govt employees. You never know what gem of info they may reveal, whether they realise it or not.
This is exciting & I haven’t had time to scratch below the surface yet!
Cheers,
David Paxton
“You Only Live Twice”well done. this will certainly keep us motivated. persistant will pay well
hi all
agent 007
you are a tease aren’t you[
]Does the company starting with “e” still have the contract to auction all houses outside the capital?
westanWestan, Oh boy, now I’ll have to shoot you too…[
]‘e’ is very good, apparently no reserve price.
However, tonight ‘jt’ has a reserve (not sure that this was the instigation of the RE company or the govt. branch involved.
Also ‘b’ has a few coming up too….
Ready to play Cleudo…[
]David Paxton
“You Only Live Twice”It was the butler with the candle stick!
007
Well down you big teaser… there are newbies all over the country trying to work out what will get you to reveal your story in detail[}
]I wish you the very best of luck, I hope your structure is sorted out fast so that you can capitalise on this little gold vein. I would love to hear more about your journey please keep us posted.
Cheers
Leigh K[]Carve your own path and lead the way …
hi all
david and others
i actually posted on the forum a while ago. i mentioned one of the companies (starting with e)that is selling them and even mentioned a contact Dennis Brewer who is a very good reference point.
there you go snoopy people go through all the old posts to find the company. Personally i’m not a buyer in this market anymore but i will respect your lead David and not reveal to much more (yet).[] go for them David.“Westan, Oh boy, now I’ll have to shoot you too”
by the way i have left details with my lawyers that in the event of my untimely death the full details will be posted in Bold text on the forum, that should keep me safe for a little while.[
]bye westan
in that case Westan i might plan your death so i can then find out the details in Bold..haaaaaaa[
]hi all
yes, good one kristine, i didn’t think of that[xx(]
regards westan[
]hi agent007
were those the 8x1s that sold for $380K and the 14x1s that sold for $635K? were those the ones that were untenanted and cosmetically challenged?
[8D]007,
Are you familiar with the ‘b’ auctions? I noticed today that they have a SAHT land sale listed. Do they normally sell off houses in the same areas too, or just land?
I attended the ‘e’ and ‘jt’ auctions during the week too. The ‘e’ auction was purely to see how much prices and interest had risen since my purchases there earlier in the year. Was prety stoked – Don’t know of any city areas that are showing the same level of growth at the moment! Wish I’d bought a few more then.
Was pretty suprised by the lack of interest and some of the prices at the ‘jt’ auction. A sign of things to come perhaps?
Cheers,
Mike.hi mike
what prices did they get for the jt auctions ?
were the properties in the northern suburbs?
i’m interested because i’m still selling one in Gunther St. E.P. want to get about 96k for it.
regards westanHi Westan,
Is that EP or EG? Can’t see a Gunther St in EP in the street directory.
Anyway, the only EP property was a double – 16&18 Daniel Street if you want to compare it to yours. I didn’t get to look at this one prior to the auction, but the description was “No 16 – 3 bedroom, No 18 – 2 bedroom. Undivided pair in average condition. Structural defects need to be addressed” . A heckler shouted out that it had a broken back! Minimum bid was $115K, very slowly got to $130K which sounded like it was dead on reserve from the way the auctioneer was talking.
A few others passed in, in EV & ES in the $75-90K range. EG, single passed in at 96, double passed in at 161. EE sale at $83.5k for a single and $156K or a double. DP had one single at $83.5, and there were the blocks of units mentioned previously too. Remember that these a basic houses, generally unimproved and some in poor condition, so if yours is a bit special then your price might be justifiable. Check the Messenger for comparable advertisements – plenty in there.
Also saw one sold at auction at DP last weekend for $70k. Very small turnout, 2 bidders – got to $57k I think – below reserve, rejected by vendor (a bank by the sound of it), then the winner made the $70k offer with no further bids. Was a bit rough, graffitti and stuff, but good potential. Someone had actually broken in and tried to steal the security system. Thought that was pretty funny.
Anyway, from the browsing I’ve been doing over the last few months, I’m starting to think that it’s not quite the sellers market that it has been. Too many sellers in that area trying to cash in their gains. Just my opinion.
Cheers,
Mikehi mike
thanks for that info, i live in victoria so i really appreciate your input. in the past 3 months i’ve sold a pair in SPlains for 159k and a single in EP for 94k, all were in average condition. so by the looks of things i’ve done OK.
yes that property is in EG not EP (i get confused which one is in which suburb). my property is in average condition. it will be interesting to see what i get for it.regards westan
Hi all,
It was easy enough to find out what the ‘e’ was but how about the others i searched through heaps of vic government sites and couldnt find out who they contract for property auctions…
hmm any help would be great!
Regards Josh
Josh
you’re in the wrong state[
]actually for victoria the ministry of housing use different agents unlike this state where they are contracted to certain companies
westanHi all,
Yeah i figured that i spoke to a few departments and found out they are dealt with via tenders to RE agencies
No good…
Good luck tho!
Regards Josh
Hi Agent007, I wonder if you could contact me by email. I am looking in the same area as you seem to be, but do not have the time that you appear to have. Perhaps we could talk.
Regards
Lisa R
lrobbie#netspace.net.au[?][][?]Mike,
According to SAHT, ‘b’ looks after selling their south,east & western suburb properties. Looks like they mainly have SAHT land at the moment. But I’m sure they sell their houses too.
Spider,
Yes… Would need a bit of dough to get them up to scratch.
Interesting that some investors are cashing these +ve cashflow properties already. Maybe they need Quick Cash. Otherwise they would be ideal to hold on to for the cashflow. As John Burley rightly states, it’s not the cash that makes you rich but the cashflow….
David Paxton
“You Only Live Twice”hi david
i’m happy to cash in and reinvest elsewhere as i bought in SP at 42K a pair and EP and EG at 24k eack so a nice profit. today at 94k and rent of 125 they aren’t cash positive.
regards westan
Westan,
How is $125p/w at $24K purchase not +ve cashflow? I’d be more inclined to keep them, refinance hoping the bank will agree with the $94K esimate and use that $70K equity as deposits for a few more properties. My strategy is long term – buy, reno, rent and refinance when it appears that the market has risen enough [
]… or just buy, hold and rent if the “bubble bursts” []David,
Thanks again for that info.
Cheers,
Mike.
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]… or just buy, hold and rent if the “bubble bursts” [
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