I’ve been noticing a For Sale sign outside a block of units in Ashfield (inner-west Sydney) for some time. The block looks like it was built in the 1960s, and it had some renovation work a few years ago.
This morning there was a new sign. “Liquidation Sale”
I was driving so I didn’t get time to read the whole blurb, and I dunno if the liquidation is forced, voluntary, or a new variant on those Closing Down Sales that you see every June for Persian carpets and light fittings. Just thought it was interesting as another straw in the wind.
Ghoti
Ghoti,
Maybe the Persian carpet guys put the sign up in the wrong place :o))
I think it’s quite unprofessional of the Real Estate Agent selling the place to put up a “liquidation” sign as a strategy. It means that the seller will probably get bottom dollar at sale. Perhaps the seller requested or ok’ed such a sign, but seems like the RE people should know better.
On the other hand, perhaps it’s a new strategy to get buyers in- after all, you yourself noticed the sign, whereas a regular sign might not drag in the purchasers. *pokes you* Gonna ring the RE and find out the story for us?
kay henry
Hey Ghoti,
I would have to agree kay henry, I would say that the sign is a new method of attracting buyers in. You should check with the real estate to see wha tthe deal is.
Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Sadly, I think the liquidation is real. To the annoyance of the car behind me I slowed down enough on my next trip to see that the sign shows the price for one unit as $199,000 or nearest offer. I can’t remember seeing o.n.o. before outside the classifieds, and never on real estate. Seems even less professional than the “liquidation sale”, and I can’t imagine an agent putting it there except under direct instruction.
Matt o’Phobia, if that’s a warning thank you. Kay Henry, yes I’ll check out the story. Professional or not, the agent has my attention. Pity I’m not in the target market.
The agent says his instructions are to sell by Christmas; he told the vendor that if that’s a serious instruction then the price has to be serious; the sign is intended to attract attention, which it certainly did.
The units are for sale singly – i.e. the entire block is not for sale (I think because the vendor doesn’t own it all). Some are tenanted at between $120 – $147 a week. Some are renovated, some aren’t. They’re small – 34-35 sq. m. The agent suggested they might suit someone who lives elsewhere and wants a Sydney base. He did not call them superb investments, which strikes me as a point in his favour.
One not so usual feature is that part of the land is on a 3-year lease “by the strata” (does that mean by the body corporate?) to the RTA “for parking”. I didn’t follow that up, but it might indicate a small income to the body corporate, which might enable lower strata levies and/or better maintenance than other similar blocks. However I’d say there’s also a strong possibility that the RTA will want to buy the land some time, which would probably not be good for the value of the units.
Obviously they aren’t +ve cashflow, but if anyone wants a really cheap unit in a not-so-good (aka busy) road in a pretty good suburb in the 5-10km ring from the Sydney CBD, they might suit. I’ll email more info if anyone wants it.
Ghoti
Without music, life would be a mistake.
Ghoti :o))) Thanks for all that excellent info. 34-35sq units- oh dear [
] and for nearly 200k- it’s a big call, I think.Re the RTA lease- an individual might get $30-40 a week for a car space, I guess. In the block where I live, undercover secure car spaces are being rented for $20 a week, in chippendale. So it doesn;t seem like it might be much of an income.
Ghoti, here’s something I got sent in the email this morning- sounds like a much better deal. Waddya think?
POSITIVE CASH FLOW
From $150,000 with rental return of $250
Off the plan in rising market, best capital growth potential completion
18 mths
Developer pays for deposit bond
No stamp duty
No capital gains tax
Very funky developmentPopulation growing at 110 people per day
Call Sydney One realty to find out more
Renee Robertshaw 0414 659 433kay henry
No stamp duty
No capital gains tax
kay henryThey’d better hope Bob Car and Peter Costello don’t see the email coz they might get slightly miffed that they are missing out on some of that tax[
][][]‘Eat rich food, barbeque a yuppie’
Rugby, yeah, i thought that was weird also. Anyone have ideas on how they do this? I think for OTP apartments in Melbourne, there is no stamp duty… but no CGT?? weird…
kay henry
quote:No stamp duty
No capital gains tax
kay henryHmm intersting, pls post here when you know.
Thanks Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
My first thought about this was that I’d rather put the money towards a box at the 2004 New Year Test. My next thought was maybe this is off-shore. My final thought was, CG would probably be excellent on a box at the SCG, if only…
I don’t know much about units [
]With reference to the “liquidation sale”, if the deadline is real they have 7 days to sell 7 units. $200,000? – I don’t think so. I know the house market in the area pretty well, but I don’t know much about units (see above) and I don’t know where the good buy price would be. Assuming there is one.
Ghoti (with prematurely festive flippancy)
Without music, life would be a mistake.
Thats around $5,700 per square metre, sounds like the bargain of the year to me.
I think not.
Rugby, yeah, i thought that was weird also. Anyone have ideas on how they do this? I think for OTP apartments in Melbourne, there is no stamp duty… but no CGT?? weird…kay henry
Just a thought, but if you do not pay stamp duty, is your name actually on the Title? I would not have thought so.
CGT can be explained away only if your are going to make it your PPoR.
‘Eat rich food, barbeque a yuppie’
] and for nearly 200k- it’s a big call, I think.
][
You must be logged in to reply to this topic. If you don't have an account, you can register here.
