Elizabeth Downs -Hot lead for low cost Mortgagee Sale

[Corey Batt]

Upside to Centrelink is that if you get them on Centrepay, the dollars will be rolling in a lot more reliable than an employed person.

As always though, tenant quality comes down to the quality stock being presented and price being offered. If you're renting up a slum, you'll get bottom barrel tenants. Something neat and presentable at a reasonable price, you'll have less headaches to deal with.

 

[Joeyv]

Anyone read the story about the guy how has to demolish his half built house in Elizabeth park?

http://m.theaustralian.com.au/news/...rovals-not-given/story-e6frg6n6-1227081769046

 

[TMNT]

Whats everyones opinion in terms of price for the following

Pair of semis
1350 odd sqm
Davoren park
3bdr+2bdr
both are neat and currently rented
corner block, rectangular

ive been following prices, and it seems the market price is a bout the $270-$280k mark,

does anybody have sold data of semis???

unfrotuatnely, my software doesnt show any pairs of semis

thanks everyone

 

[D.T.]

TMNT - my pair of semis was 250k in eliz downs. I know of other people on SS who have bought semi pairs for similar numbers.

Dav Park is a worser (local lingo) suburb than all of the eliz prefix ones. Therefore it should be worth less, IMO.

 

[2FAST4U]

TMNT - my pair of semis was 250k in eliz downs. I know of other people on SS who have bought semi pairs for similar numbers.

Dav Park is a worser (local lingo) suburb than all of the eliz prefix ones. Therefore it should be worth less, IMO.

What year did you buy your semis?

 

[Truly Exotic]

ive got a really good handyman in the general area, quite cheap as well

if you guys want his details, please PM me

 

[TMNT]

TMNT - my pair of semis was 250k in eliz downs. I know of other people on SS who have bought semi pairs for similar numbers.

Dav Park is a worser (local lingo) suburb than all of the eliz prefix ones. Therefore it should be worth less, IMO.

good purhcase DT

I know that $250k was the sort of going rate for a 1300sqm+ pair that needed a bit of work,m

however, recently unless im wrong they were going for about $270k, maybe cjay could confirm.

yes, Dav park is crappier, however, my gut feeling is that for development, its better as there seems to be more development in the area,

I also noticed that a pair of semis in johsntone st, last week sold in hours, asking $240k, but it was tiny, maybe 950-1050sqm

 

[D.T.]

What year did you buy your semis?

June 2014.

 

[Corey Batt]

good purhcase DT

I know that $250k was the sort of going rate for a 1300sqm+ pair that needed a bit of work,m

however, recently unless im wrong they were going for about $270k, maybe cjay could confirm.

yes, Dav park is crappier, however, my gut feeling is that for development, its better as there seems to be more development in the area,

I also noticed that a pair of semis in johsntone st, last week sold in hours, asking $240k, but it was tiny, maybe 950-1050sqm

I look at it from this perspective. Land values in Davoren Park have been absolutely decimated lately, with post subdivided blocks going for as low as $156/sqm. Just to break the same pricing as the post development pricing, the purchase price would have to be $210,000. Then consider this doesn't include any profit margin or meeting your costs, so you're at a loss. This knocks out development potential at this time, meaning you instead look at cash flow.

At 270k and a site total rent of $400 a week, you're only scraping 7.7% - very average for the area. For a lower purchase price (with a lower % stamp duty rate) you could purchase near on 2x properties, achieve higher rent and most likely more sqm of developable land - or better yet in a suburb with higher land vals but similar stock prices.

But just to speak outside the quality of the investment, and just on sales prices: Davoren Park semi pairs have been floating around 230-290k, the upper end being the largest blocks and best stock of course, inverse case for the lower end. If you were really intent on purchasing a pair of semi's I'd be aiming for circa 250k at the max for the pair you're talking about (I know which one you're asking about).

Hope that helps.

 

[Waldo]

good purhcase DT

I also noticed that a pair of semis in johsntone st, last week sold in hours, asking $240k, but it was tiny, maybe 950-1050sqm

Do you have a link for that pair? The last two sets of semi's on Johnston st that I saw both went to auction (the first one got 265k if I recall correctly).

 

[TMNT]

Do you have a link for that pair? The last two sets of semi's on Johnston st that I saw both went to auction (the first one got 265k if I recall correctly).

http://www.realestate.com.au/property-house-sa-elizabeth+downs-117462235

Sold in a matter of hours, came up on my alerts and was under contract,

I havent called the agent to see how much it sold for

 

[TMNT]

I look at it from this perspective. Land values in Davoren Park have been absolutely decimated lately, with post subdivided blocks going for as low as $156/sqm. Just to break the same pricing as the post development pricing, the purchase price would have to be $210,000. Then consider this doesn't include any profit margin or meeting your costs, so you're at a loss. This knocks out development potential at this time, meaning you instead look at cash flow.

At 270k and a site total rent of $400 a week, you're only scraping 7.7% - very average for the area. For a lower purchase price (with a lower % stamp duty rate) you could purchase near on 2x properties, achieve higher rent and most likely more sqm of developable land - or better yet in a suburb with higher land vals but similar stock prices.

But just to speak outside the quality of the investment, and just on sales prices: Davoren Park semi pairs have been floating around 230-290k, the upper end being the largest blocks and best stock of course, inverse case for the lower end. If you were really intent on purchasing a pair of semi's I'd be aiming for circa 250k at the max for the pair you're talking about (I know which one you're asking about).

Hope that helps.

thanks cjay,

the semis were sent to me via another member on SS,


I agree that 130k each for a semi in dav park isnt a great price, in fact about 5-10k too much, but I was thinking at 8.4% yield, I think its pretty good, the $ per sqm isnt that great I agree, but long term for a hold for a while and develop later, what do you think Cjay? (what am I missing? $270k is silly, I think $250k makes it a very good purchase)

which sites can you get a better return, better land at a cheaper price if you buy 2 x places?

 

[D.T.]

http://www.realestate.com.au/property-house-sa-elizabeth+downs-117462235

Sold in a matter of hours, came up on my alerts and was under contract,

I havent called the agent to see how much it sold for

Hours my foot. The agent who originally listed that property was the same one who sold me my pair in June, its been for sale since then.

This is the email the vendor sent to the REA in early June:

Hi Paul,

Properties at 30 and 32 Johnston Road, Elizabeth Downs.

There is a combined frontage of 33 meters, depth of 35 metres and total area of 1,032 sq metres and potential for further development. (S.T.C.C).

The property at 30 Johnston Road receives $210 per week in rent and we believe the tenancy agreement expires in April 2015 (but will confirm this when necessary).

The property at 32 Johnston Road also receives $210 per week rent and the Tenancy Agreement expires 4 October 2014.

In October 2011 both houses were painted throughout including the kitchen cupboards and also $8,000 was spent on underpinning.

I have found the link to the original advertisement on RealEstate.com when we purchased the properties. The front still looks very similar.

http://www.realestate.com.au/property-house-sa-elizabeth+downs-106081276

We obviously purchased the properties for $300,000 and spent more on them since that time, so we would like to recoup as much of this expense as possible. However, we are realistic about the current real estate environment and are keen to negotiate with a willing buyer.

Please email me if you require any further information.

That agent then couldnt sell them, so they changed to the Remax one.

 

[Joeyv]

Semis are over priced everywhere across Elizabeth and davoren park.

They would have to be 110 each for me to buy them.

I laugh when I see them for sale at 160 each

 

[D.T.]

Semis are over priced everywhere across Elizabeth and davoren park.

They would have to be 110 each for me to buy them.

I laugh when I see them for sale at 160 each

Depends on land size and condition. I paid 250 (so 125 each) for mine in June and I'm happy with that.

 

[Joeyv]

What rent you get for them?

Also I say $110k each if they are bombs. Which they mostly are.

If they have been reno'd 120 would be good

 

[Corey Batt]

Hours my foot. The agent who originally listed that property was the same one who sold me my pair in June, its been for sale since then.

This is the email the vendor sent to the REA in early June:



That agent then couldnt sell them, so they changed to the Remax one.

DT is right, that pair sat on the market for a long time.

Waldo and I attended the auction for that Johnston pair. It ended up selling to a fellow who started randomly bidding into the auction - it was struggling at 210k prior to his entrance. The bidder seemed to struggle with English and was registered to bid mid way through the auction when the staff realised he wasn't registered for that particular property. It ended up quite the hot contest until it reached 265k if I remember correctly.

TMNT:

All comes down to your investment strategy. I just look at it that if you have to wait for land values to increase by 40% to make break even costs, it's probably not a developers delight initially. As to what properties are out there which provide better yields and cheaper per sqm, I'm not a Buyers Agent so I'll be keeping those finds to myself.

 

[TMNT]

Hours my foot. The agent who originally listed that property was the same one who sold me my pair in June, its been for sale since then.

This is the email the vendor sent to the REA in early June:



That agent then couldnt sell them, so they changed to the Remax one.

ok, well I missed the original listings, I saw the listing come up on my alerts and the next day it was under contract

edit:I just checked my emails, and i have an email from the selling agent explaining the $265k price and it not selling due to a dud bidder.

oops, I better learn to check my emails

 

[TMNT]

What rent you get for them?

Also I say $110k each if they are bombs. Which they mostly are.

If they have been reno'd 120 would be good

http://www.realestate.com.au/property-house-sa-elizabeth+east-117968799

this one is overpriced at $110k, look at the cracks!!

 

[D.T.]

I heard some people on this forum specifically go for the ones with cracks.