I have just come across this property on Domain.com and thought I would warn anyone who might be looking at it.
This property was on the market (deceased estate) at $89,000 in September this year and was sold (just below asking price according to agent) to two local professionals (solicitors, I think).
They know that there are plenty of Sydney investors looking at getting in to Forbes and are trying to make a quick buck. As you can see it has been re-listed at $125,000 just two months later. Even the spiel written about the property has been copied word for word from what was previously written ie. nothing has been done to the property to justify the increase.
Just thought I would let everyone know so they can make an informed decision if thinking about this property.
P.S. it was close to positive c/f before, certainly not now!
‘Eat rich food, barbeque a yuppie’
You can never beat local knowledge.
This would not be the only example i bet.
Investors should carefully research any areas in depth to make sure they do not get stung like this
If you buy at or below the median price within the area then you won’t go wrong.
Kind regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hello
Isnt there some webpage or office that you can ring to find out the date a property was last sold and for how much. I remember reading about it once, this would make a great research tool. Does anybody know the place I am talking about and how to contact them?
Scott
“Together we combine our strengths and eliminate our weaknesses”
Folks,
I’m not sure what the problem is here. The buyers might make 36k profit if they get their asking price. Isn’t this what people call “flipping”? And isn’t wrapping a place a similar thing? The vendors will be looking for a quick capital gain, and be paying 100% capital gains tax in the process of selling within a year of purchasing.
The house might have originally been “undervalued”. If the house sells at this price of 125K, then if the market pays it, that is market price.
I am not suggesting I would do this practice personally, but I thought people here were either into cashflow or capital gain? If so, the solicitors who purchased this place are just seeking their own CG in a short period of time. They’ll make 36k minus 1k stamp duty minus 18k CGT minus about 4k in selling costs. That’s 13K profit *if* the seller gets full price. If the price is negotiated down 5k, that’s 8k profit.
Isn’t that just “business”? I thought property investors would applaud this kind of entrepeneurial activity.
kay henry
Hi,
I have to agree with Kay’s comments – I’m sure a lot of the investors on this site have grabbed opportunities like this when they’ve found them.
As for sales data – http://www.homepriceguide.com.au gives you this info for a fee and it’s generally 2-3 months slow to be posted, or just use local knowledge starting with neighbours and RE Agents for the latest.
Happy investing!
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Mel
[email protected]Hi Strw23
If you go to realestate.com.au there is a section where you can order an online property report on a particular property. It costs $49.50 and the report arrives within seconds of ordering it. I have found this to very useful when you’re serious about a property – it lists the entire sale history of the property for the past few years, including dates and values of any sales, as well as unsuccessful attempts (eg passed in at auction, withdrawn from the market etc). It also provides recent sales figures for properties in the surrounding streets. Good value for money.
Ciao,
Anastasia>If the house sells at this price of 125K, then if the market pays it, that is market price.
I would change the term “market” to desperate or uninformed.
I doubt wether Forbes has had an ‘undervalued’ property for about two years, its been well and truley picked over.
From a country point of view, if city people are all cashed up and desperate to buy anything (possibly) site unseen well they can cope the future consequences !
Who said country people are stoopib [
]BC
Isn’t that just “business”? I thought property investors would applaud this kind of entrepeneurial activity.kay henry
kay henry
I think if you read my post again, I was by no means saying this was a dirty or underhanded practise. I was merely stating that for this particular property I was aware of the history.
That the buyers may be able to ‘flip’ it for a large profit is kudos to them.
In fact I ended my post with:
‘Just thought I would let everyone know so they can make an informed decision if thinking about this property’.I was just giving out some information, that’s all – not passing judgement.
I have taken on board alot of information from these boards, including some posted by you (for which I am grateful). I felt that discussion topics like this can only help new investors when starting out.
Kind regards
Chris‘Eat rich food, barbeque a yuppie’
Chris :o))
I think it’s really valuable that you’ve provided a history for this property. Whilst 125k doesn’t seem like a lot to me (the prices all over NSW and australia means you can get bugger all these days for under 100k), it’s great to know a bit of background about properties so we can make informed decisions- you’re right, and I appreciate it
)In terms of “value”, funnily enough, I recently bought a place for 69k. Two weeks later, the unit next door, in the same condition as mine, sold for 87K! My place got valued formally by the bank two months after, and was valued at 90K. So what I meant by “market value” bc, is that really, the market will pay what it seems fit to pay. That may be “desperate” or “uninformed” but really, I think the whole of the real estate boom has been based upon what people think a place is worth paying. Our IP’s may not have been improved one iota, and yet still they have risen by what the market determines, and most have doubled in a few years.
Again, thanks for the info, Rugby
) 125k for an ex-HC house in Forbes, of all places, seems a lot!kay henry
Scott
As you’re in WA you can contact the Valuer General’s Office and get sales evidence for a particular street or streets for $22.00. My contact is Louise Stazzonelli. I usually do it via email bit don’t have her email address handy.
Clive
Try a website – http://www.propertyvalue.com.au & it will give you an estimated value on a specific property, and even give you recent property sales for the last few years in some cases. It does cost $39.95 for the first time, but gets dicounts of 25% & up for the next report & so on. It also gives an estimated property value for 5 years down the track. Check it out.[
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