10 years ago there we're government auctions for a number of government houses where one person attended the auctions and purchased a heap of them, i think it was four or more at around 14k-20k. This was government auctioning off some stock pre-boom. You may remember it happening in your town!
If you are in this town and talk to anyone about real estate just about anyone brings up these four or so houses that we're bought and how they are now worth anything from 75-100k. I often when looking at them think, yeah, yeah, i know I've heard it so many times but that was yesterday nobody says. They bought them for this and i'm planning a strategy to purchase real estate today.
In a couple of weeks time another four government properties are coming up in the very same street. Over the ten years that street has been in a transition from druggies to Ferrel's to a lot of the houses now being owner occupied.
I attended an auction there two years ago and the agent said to me that there we're five more coming up soon. But it's taken longer then expected. I've known for two years that there auctions we're coming up.
Me and my mother will attend the auctions in a couple weeks time but I'm little busy with one property renovating that i don't think bid unless one goes for a song.
I actually own one property in that very street and it brings in positive cashflow of just shy of $10,000 per Annam and yes that's after all the expenses paid. It have been an amazing success and now a year on and i've managed a 100% occupancy rate.
I talked to a lot of people about this property that i bumped into and got lots of negative comments about it. Why did you buy that. It's a dump. One guy was little drunk kept repeating for over 20 minutes. Why did you buy this. No way i'd buy that mate. I would not live there etc.
After all that my long winded post really was to say that i am going to attend the auctions with interest. Are these auctions of government houses again a turning point in the cycle? Is there auctions of government houses near you?
I have never heard of government auctions. But if you can buy houses or land for cheap then that sounds like a great idea.
People tell me all the time that I am stupid for what I invest in. But the numbers don’t lie. If you are making $10,000/year in passive income and the people who say “I would never buy that” are making $0 then who is laughing now?
I try not to listen to people who give financial advice if they aren’t already doing exactly what I want to be doing in the future. Otherwise their advice is tainted with their own motives.
Ryan McLean | On Property
http://onproperty.com.au
Email MeThere are commission houses. you would not believe it! When you get into town and you get involved things start happening.
Just before we we're to walk down to the auction i arrived at mums a few others there that are going to auction. Mum comes flying out the door there was an auction yesterday that was passed in on a vendor bid of 55k on 1 1/2 acres of land in town. I dropped my folk and said Suzanne (my sister) we've got ten minutes before auction lets jump in the car and go out there and have a look at it. Ate lunch quicker then anyone that hasn't eaten any lunch before, glad it wasn't hot. "I'l show you the house i submitted an offer on today on the way out" sister said.
Then went to to auctions. The same person that was there ten years ago bid and bought one they own about 50 properties in town now so they say could be more or less. The sign on the front says "Must Sell". First one went 90k, second i bid 50k (first bid at auction) and silence! "Any more bids above 50k" agent says. No. Auctioneer annihilate me with a vendor bid of 90k and knocked me out and pass it in. Hey what happened to 'Must Sell" agents must have a different dictionary to everyone else. Next one i bid $71,500 and went to 99k. Third not sure about 90k and last passed in and relisted at 76k but it's in another town and not a location id buy in on those numbers.
O'well that's the way it goes. I was only ever only going to bid to my limit.
We arrived home. Almost time to say our parting goodbyes to everyone. And agent rings to let sister know her offer was accepted. Exciting feeling yay it's all happening. Getting just on dark i decided i would just get a quick look around the back of the yard at the other house in the fading light. Then text an agent an offer and got an offer in on another property that was rejected. Other agent rang back yep vendor will accept that offer.
I only left my house for one day i never go anywhere i've been stuck out here for months doing this renovation and only go into town for food and supply's. I wasn't even looking hard for deals. 72k and will rent for $220 week or more when updated. And land lots of land i got 1 and a half acres. The yard goes way back to way back! Bought in my name!
You have got me thinking.
There are a couple of streets in my area that are known no go areas. Lately i have seen many pop up for sale. Im sure they are public housing. I better go check out the next auction.I did notice that they all say, Conditions apply. You may have to allow currrent tenents to stay on until there new housing is built.
Wow they are some pretty good numbers!! Is this rural or city? In other words where should one be looking?!?!?!
Thanks
Sash.
Want it. Own it. Enjoy it. Achieve it.
there are a few in orange the gov is auctioned off
sasha.hopkins wrote:Wow they are some pretty good numbers!! Is this rural or city? In other words where should one be looking?!?!?!Hi Sasha, Rural or any regional town 5000-10000 population upwards i guess could be a good place to start looking.
When i posted this thread i was mainly wanting to have a yack about these specific ex commission houses that had come up from sale all in the one street and stimulate peoples minds of what their might be out their in your neighborhood as well. I new there we're two together and i know that the third one side by side could have been bought later.
I know the guy that lives there (he is my artist painter) and that all i would have to do is give him a place to rent and the government would sell that to. I was wandering if some developer would come along and buy those two together and twig that the three could be purchased. In my mind i thought that eventually getting the three, renting a while then developing the three lots. The street is in a low spot in a gully only in that spot on one side. If a pertaining wall was installed at the rear fence across the three lots and filled to bring it up to level with the road then eight units would go on the block and clean that street up more.
But what happens happened on the day and individual people own the properties now. Mainly just strugglers and first home buyers trying the get a foot in the market. I'm glad in a way i didn't get one. Because what was unfolding up to during and after the auction ended up being a block that i could build three houses on and possibly shift one house off it onto another block. Even if that takes a long time in the meantime it will be easily held positive cashflow.
I had a call before i signed the contract of someone offering 1/2 a million dollars to develop it. Quiet bizarre considering i wasn't really that keen to buy one at the time of posting but as i kept thinking about it then got toey and got into the financiers. I remember texting the agent (my first text offer) as i drove out of town on dark as the sun was setting i was thinking "i'm scared to text this offer, they will think it's scroungy and reject it and no way this agent will accept this offer for that block".
Interesting day. She came back on the Monday. I now have a signed contract and finance approved. This deal is all done and dusted.
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