G’Day again and thanks for dropping by.
I’ve taken a peek at a particular street where I marketed and sold a LOT of homes in 2002-2004.
When the market was crazy I was personally selling 2 houses a month in this one street. In the last two years there have been just 12 sales.
Bought March 2008 for $469,000.00 sold Dec 2012 for $415,000.00. That’s a loss of $80,000 on the surface but I know they put a very expensive block wall around the back yard, renovated the kitchen, re painted and re carpeted. Mmmmm – they ‘probably’ flushed $120,000.00
Bought August 2006 for $410,000.00. Sold late 2012 for $450,000.00 WHOO HOO – a profit! Sorry, NO. The stamp duty and legals going in and the real estate agent and other fees going out mean that for SIX years of blood sweat and tears it returned them ABSOLUTELY NOTHING.
Bought late 2005 for $395,00.00. Sold late 2012 for $465,000.00 MORE CHEERING I hear! BONG, CLANG, SMASH… Not if you put an extension on the house, re paint inside and out, new expensive window finishings, new carpet and tiles. Take out stamp duty, legals, agents fees and we have another LOSER.
Bought September 2003 for $310,000.00 and SOLD late 2010 for $450,000.00. THE ONLY WINNER here. Good timing. However, the sale was made by a very dodgy marketing company that took them to the cleaners on fees and questionable marketing expenses but they still did OK. Or did they? It cost them $340,000.00 to get in – they “owned” together with the Bank for SEVEN YEARS where they had a series of really bad Property Managers who put terrible tenants in place. They paid out a fortune in routine and extraordinary maintenance and had to refurbish the gardens three times at huge expense as packs of large dogs had ripped it to shreds. They were charged more than $30,000.00 in sale fees so they netted about $80,000.00 less capital gains tax. Depending on their personal tax circumstances they ‘made’ about $7,000.00a year for all that grief and heartache.
The new owners are also far from happy. They are from interstate and were also duped by the same dodgy marketers. They could have bought the IDENTICAL house about ten doors down for $380,000.00.
Turning to the beaches here – WHAT BEACHES? If we get a couple of bad winter storms where the surf gets much bigger than 6 feet, we will start to see swimming pools and possibly $5 million+ homes and apartments fall into the ocean. I am not kidding. Google “Beach Erosion Gold Coast Queensland Australia” and see for yourself.