Okay then… to all you doubters out there who think I pull examples out of thin air. A local agent sees fit to sprout their success and tell all who’ll listen about their recent sales , so I’ll examine their claims to see how the sellers fared. Don’t forget its not just about looking at “bought for $450,000.00, sold at $480,000.00 – WOW a profit!” That’s not a profit when you take out Stamp Duty and legal fees IN and Agent’s commission and legal fees OUT. Don’t forget if they’ve paid a massive mortgage, all the time taking aim at people who rented for the same period, these hapless BUYERS/OWNERS/SLAVE TO THE BANK are waaay behind, waaay behind… Some of these properties may have had pools, solar water heaters, solar roof panels, insulation, upgraded kitchens, patios and verandahs added, revamped landscaping and so on – who would know or at what significant cost…
1. 19 Wisconsin Street, Varsity Lakes – advertised at $465,000+ marked as sold but the actual contract price is not disclosed (same for all the examples) – was bought for $480,000.00 in July 2007. Not a great result.
2. 9 Cornell Court, Varsity Lakes – advertised at $620,000.00+. The land was bought in March 1998 for $281.000.00 a big price as its north to and on Lake Orr. The house would have, in those days, cost at least as much as the land and most likely more, so again, a shocking result after more than 15 years of “ownership”.
3. 6 Wisconsin Street, Varsity Lakes – advertised at $455,000.00+ but again, no revelation as to actual sale price. They paid $439,000.00 in November 2011. Ouch.
4. 9 Washington Crt, Varsity Lakes – advertised at range $599 – 639,000.00. (Comment – Agents who put a price range on a property in this Buyer’s market are, sorry, but just plain stupid and are not properly servicing their clients – I mean, really, if you, as a buyer, saw this, where would your first offer be? In the middle somewhere? At $620,000.00? I don’t think so. You’d be south of $575,000.00 if you had any idea of what you’re doing.) The sellers paid $545,000.00 more than 10 years ago.
5. 3 Peppertree Circuit – just advertised at offers $520,000.00+ – They paid $500,000.00 more than 5 years ago. They WILL take a hit.
6. 14 Shorehaven Place, Varsity Lakes – also advertised at $399,000.00+. The owners paid $435,000.00 just over 5 years ago. I think, but aren’t entirely sure that they added a pool, so no money back for that, and a massive hit coming up.
So, I’m not cherry picking statistics. This is real-time intelligence straight from the street. Street-by-street, property-by-property, in areas that are close to schools, shops, medical facilities, lakes, pathways, parks, bike-ways and the beach. All desirable attributes in any property but even that extensive list of pluses fails to put a line under a sinking ship.