Bank Fire Sales Have Started In Mandurah WA

Bought Feb 2006 for $1,250,000

Rented out for 4 years for just $500 - $525 per week

Put up for Sale Dec 2008 for $1,500,000

Price reduced over the next 2 years to $1,300,000

Taken over by the bank Jan 2011 reduced to $895,000 no offers for 8 months at this price. Now reduced by the Bank to $799,000 See the Realtors add "ALL" offers considered.

My Insiders say the bank will take $745,000 !!

{UPDATE 24-12-2011 Bank has now reduced Asking Price to $750K hate to say I told you so but I did & that was Sept 2011 FYI my Bank insider tells me they will slash this property to $699,000 2nd week Jan 2012)

Why would they take $745K ??

Well if you look you will see there are 68 Apts in this canal area for sale all at same distressed conditions. 

The owner of this Gem had to sell a property in Woodvale at a $100,000 discount in a attempt to keep the bank from foreclosing.

Be careful judge for yourself but at $745K this is getting close to good value. However I personally would try my luck at $675,000.

 

Good Luck out There Still be cautious though. {:-)

 

MORTGAGEE PENTHOUSE APARTMENT – MUST SELL

MANDURAH 19C Florian Mews

http://www.century21.com.au/c21/propertysearch/Brochure.cfm?grplstno=WA85427109 

For those who thought that acquiring a Penthouse in the Mandurah Marina was out of reach then think again. We are proud to offer this magnificent two level penthouse with open canal and waterway views. Some of the many quality building features include:

- 3 spacious bedrooms all with built in robes
- Stunning master suite with double vanity
- Masterful Chefs kitchen with top of the range appliances
- Thick granite benchtop and extra storage space
- Open plan living area with full length windows
- 2nd level mezzanine area, perfect for the big screen tv
- Feature light sets the right tone
- Ducted reverse cycle air conditioning
- 2 balconies, one each side for entertaining in style
- Garaging for 2 vehicles with storage room
- Lift and stair access to apartment

Being able to say to your friends that you are off for the weekend to your Mandurah Penthouse? What price can you put on that alone!! This is an opportunity not to be missed.




(LOOK AT THE BIT I HIGHLIGHTED IT IN YELLOW & PRINTED IT IN RED TO STAND OUT> BUT LOOK AT THE DESPERATION IN THE WORDS !!! BARGAIN HARD!!!)

We are under specific instructions to sell 
by the mortgagee and we encourage all offers. 
MAKE YOUR CALL NOW!

 

Perth Property The Next Victims

Meet property Power Couple Emma Wych a Registered nurse from Armadale Hospital & her partner Spray Painter Aaron Bini. Both were featured on page 37 in a Sunday Times article ( 11/11/2011) Unfortunately their story will be a defining one when property prices crash & burn around them.

They have both decided to take the plunge & buy into property "FOLLOWING A HUNCH" (their own words) that prices will head "NORTH"  {Whatever That means} in the next 12 months. 

They think they have snapped up a bargain  4 x 2 built a year ago for $440,000 (Down from $550,000). However they have failed to notice that the developer of their estate is offering House & Land packages all around them for $330,000 to $350,000 & in a sign of desperation the developers are throwing in a $10,000 "Freedom" furniture package as a sweetener. All around them house listings are growing by the day & vendors are dropping prices to get out of the market, but Emma & Aaron have a "HUNCH".

Now lets look closely at just what they are in for. Emma states that the decided to buy because it was just a "Few Hundred " dollars more than renting (The article fails to state if that is a few hundred dollars more per week or month) Assuming these "Kids" (22 & 24 Years of age) have saved a 10% deposit with FHOG etc ($40K) They would be up for a loan in the vicinity of $400,000 (At 22 & 24 WTF!!)

Currently in Baldivis there are over 20 homes 4x2 "To Let" at under $350 PW so to rent the same house they are about to buy will cost them no more than $18,200 pa. in "DEAD MONEY" (Her words)

Why so many new homes to rent? People can no longer afford to keep them & they are unable to sell them & pay out the bank

.

To buy this house their repayments on a $400K loan @ a 7% rate will be $33,000 pa + Rates/Ins/Maint etc it will cost them at least $36,000 pa or $692 pw (Almost twice as must as renting!!!)

These "ASTUTE" home buyers working on a "HUNCH" think that ownership will only cost them a "Few Hundred" dollars more than renting!!!

Now if Emma & Aaron continued to rent for $350pw & banked $342pw @ 6% (Savings from not buying) in 5 years time they would have over $106,000.

Baldivis is a FHB suburb effected by the slightest movements in interest rates.

In 2008 when interest rates went to 9.5% Baldivis prices plunged by 7.8%, the only thing that saved Baldivis was the GFC forcing rates back down to under 5%.

Many houses that are currently for sale in Baldivs were purchased at the height of the GFC with the assistance of a $21K FHOG & fixed interest rates that were under 5%.These houses were bought by people who could not previously get into home ownership because they could not pay rent & save enough to get a deposit to buy. These people would also never qualify for a home loan when rates were at normal levels because they simply did not earn enough.

Now interest rates are 7% they are having difficulties flooding the market with discounted homes. 

Historically interest rates have averaged over 10% no doubt Emma & Aaron have budgeted for this because it will take their house payments to over $810 pw!!!  But of course that will never happen?? so there is no need to worry about this.

Emma & Aaron will pay a big price for property ownership. No doubt they have plans for that "Big" wedding but how do you save for that & own a home? Well like most couples these days they expect the price of their house will have gone up  & they can draw down on any equity they might have built up. 

Emma & Aaron will also need to put off having children till they are both over 30, because they will have to have the 2 incomes coming in without the additional cost of children to service the loan when interest rates revert to their 30 year historical rate of 10% plus (Psst Kids that's over $810 per week V's $350 pw Rent).

Emma & Aaron can look forward to seeing their friends actually having a life touring the World & Australia instead of being chained to the Great Australian property dream.

But then they might be right & I am wrong. 

Time will tell but I bet they will a big box of this to impress their friends.

 

The scary bit is that this is what Perth property currently has as it's support base. just imaging how secure your house price is if this is what is sustaining it?

Wishful thinking in Woodvale

 

#4 Olsen Way Woodvale Waters 

Sales History

Currently Listed for $1,2000,000 to $1,300,000

(Aug  2011)

Listed April 2011 - Aug 2011 for $1,350,000 No Sale Withdrawn From Market

Bought by current owners 2000 for $545,000

Previously Sold 1996 for $480,000

Let me start by saying there is nothing wrong with this house in fact it is great. What I question is the vendors price expectations. 

Perhaps it is unfair to single out this single vendor, but this is just a typical example of our property market in general.

Property listed April 2011 for $1.350 mil well marketed , open by invitation only for the first few weeks because no doubt the agent & vendors thought it would sell without pesky buyers trudging through their house.

Home then opened several times but no buyers prepared to pay vendors asking price.

Property is now listed again after having been rested for a whole 4 weeks. Vendors have spent $3-$5,000 with the first agent trying to get $1.3 mil & can now look forward to spending another $3-$5,000 & 4 months with another agent to get $100,000 less? 

At first glance it would appear the house is well priced when compared to other overpriced houses currently on the Perth property market, if you are buying & selling in the same market it can make little difference so you may wish to consider the house at around it's current pricing.

However a common sense approach to valuing this house puts a completely different value on it.
Applying CPI & Wage increases to determine today's price:

     1996 price ( $480K ) + CPI/ Wages Growth =  $710,000 

     2000 price ( $545K ) + CPI/ Wages Growth =  $765,000

I have no doubt that somewhere out there there is a "GREATER FOOL" who will pay in excess of $1 million for a property that is actually worth less than $800,000. 

Just don't be that FOOL paying  too much in a falling market.