Paying too much in Woodvale again.

17 Grey Smith Gardens

Woodvale

 

 First Sold 21-08-2008 for $647,000

Approx $80K Spent Renovating &

then Flipped to a Greater Fool

Resold 21-06-2010 for $855,000 

{What were these buyers thinking?}

Oh thats right it is not important what you pay because property always goes up in value? (Yeah Right)

Well #16 next door is now for sale @ $699,000after having failed to sell at their asking of $835,000 when it first listed in Oct 2010

(Remember that Just 4 months after these fools @ #17 paid $855,000)

So #16 has been slowly coming down in price & yet at $699,000 it is attracting no buyers? despite 6 long months & now being discounted by $136,000!!

So what do I think #16 is worth in todays market?

Well I would not pay more than $625,000!! 

Why $625K

You see another house @ #15 Grey-Smith sold for $398,000 in 2003 & assuming houses double every 10 years 

(BTW I don't subscribe to that Crap!!) 

#15 would be worth only $636K today 

& this is what the owners of #17 should have also paid not $855k

But what about the $80K renovations you ask? This would warrant a premium?

No because all houses have a renovating factor already built into the costs of property always doubling every 10 years. 

People forget the remodelling / extensions/ pool / landscaping that is done to all houses & these costs are already in all houses that go up, you should not add renovation cost again that would be double counting. 

Think it through the penny will drop!