Monday, August 11, 2014

Gearing Up for Housebuying Again

So, this weekend we went to see several houses in different parts of the city. We are following up in more detail on the one in the picture. The location is convenient to public transport with a position on top of a hill looking out over trees to a mountain - you could almost be out in the bush, apart from the traffic noise at the back of the house. It is the most expensive block in this suburb though it has been subdivided in two in what is called here a dual occupancy. The remaining block is still just over 1000 square metres. The house looks best from the street side, as in the picture. Inside is another story and there may be some structural issues with foundations at the back. The house has been rented presumably to students at my university for the last 20 years. Current rent is $570 a week. But that is only one of the two apartments the property is divided into. The apartment is rented till early next year though the second apartment is unoccupied. I think the price has to be over $700k as the land value is at least $550k. Auction is at the end of the month.

I have a previous history with this house. Fifteen years ago my girlfriend lived there, though we weren't together very long and I didn't visit that many times as a result. It was strange to come back again now. Looks like they didn't do any renovation in all that time apart from redesigning the front garden.

Snork Maiden talked to a colleague to see if they can recommend a builder to assess the potential renovation. Turns out the people who live in the second house on the block are friends of her colleague whose children go to the same school as his children.


Bigchrisb said...

Good luck! Its an interesting market - I just bought a place in one of the suburbs I suspect you are looking at (between this place and the uni).

However, I suspect the place you linked will go for more than you have indicated - 1000m2 block, elevated views, 5 bedrooms with double income location. Check out a few of the auction results in the area - e.g. a 4 bedroom run down place on 920m went for mid-8's.

mOOm said...

Quite likely it will go for what you say. OTOH the house is not that big. Those bedrooms are tiny. We'd definitely look to reduce it to 4 bedrooms. The house down the slope in similar condition on an undivided block is asking $980k.

mOOm said...

Do you know anything about independent valuation companies. One charges $330 another $660. Is it worth paying more?

Bigchrisb said...

I didn't use an independent valuer. I did register with the intent of bidding at about half a dozen auctions. I'd go in with the view that there is a fair chance you won't buy at your first auction, so if going down this route, expect to pay for a few of them. Many people use them, so there must be some value there? Good luck either way!

Bigchrisb said...

I see they have put a price guide of $850 on it - given usual auction under-quoting, that would suggest something in the 9's as an expected sale price?