the troubadour

A family whom inherited a house from deceased parent, has been left 'heartbroken' as the house was passed in as being too cheap at $1.67 million. The 3 bedroom home, on 757 acres at 17 Beresford Street, Chatswood, NSW, was passed in as agents 'couldn't even' get an offer of $1000 over asking price.

"This Is garbage", the lady vendor commented. Chatswood many will be aware is a heavily Chinese populated locality. The tightening up of funds leaving China, combined with a falling price market in Sydney, overall, ensured expectations of truly enormous gains, which would have resulted a year or so before dissipated.

Just shows the absurdity that passes as the Sydney housing market has become. Not to say entitlement expectations and always somewhere evident, greed, which has taken this country safer not to have encroached.

bcworld

To be fair...if I was sitting on 757 ACRES in Chatswood I'd be disappointed with $1.67m too!

Amazulu

the troubadour

In all farness, I'd probably be as well. Of course what was meant was 757 sq metres. A 90 plus year house to top it. Estate agent as I understand did attempt to convince them that the value was some hundreds of thousands less, but obviously don't want to hear that.

Perhaps the falling price of housing may see a reduction in blue rinse matron cruising?

GarryP

I'm shocked, shocked I tell you, that such a mansion-like property isn't seen as being worth more than $1.67m

GarryP

Here you go, if you fancy spending your money elsewhere :



12 bedroom, 8 bathroom, french chateau in the Loire valley, with many outbuildings etc. but you would have to make do with 270,000 m2 of grounds (only 66.71 acres). It is a bit more expensive than the 4 bed though.

If you couldn't stretch, then this one is about $1,67m

the troubadour

It does go somewhere towards explaining the insanity that is Australian housing. I'd say half a million bucks more than a fair price for such an abode. Plenty elsewhere as featured. France does indeed offer some great purchases. As does Germany (though prices have risen there and folk are talking) America as well.

A mugs game getting involved with Australian housing for the large part. Even my accountant, hardly short of a spare bob, some months ago sold his family house for a considerable sum, now rents. No intention of buying again at this stage.
Quite a number of Chinese overseas domiciled ,lost out recently when company went to the wall. Some large sums disappeared there. This company brought in folk from China on real estate buying holidays. Presentation and nice speaking voices seems to lowered some folks 'warning radar' from what I was reading with some comments made. Do folk in this day, still fall for salesman con tricks? Evidently so.

NAB raising interest rates. One wonders would the RBA dare to lower rates???

GarryP

Can you only stretch to $632k? Well I guess you can pick up this 4 bed in the Languedoc :



The problem is housing became 'an investment' and all sense went out the window. Slapped together junk started commanding higher and higher values, out of all recognition to the real value, and people felt 'rich' rather than saddled with a huge debt and no real equity. Eventually that merry go round has to collapse - and somehow I doubt the banks will be left holding as much of the can as they should.

BTW many of these have been reduced in price, feels like there is a crunch coming.

the troubadour

Yep. Plenty of places of mouth watering prices available in La France Profound. (Deep France) I can tell you though in winter stone buildings as above as darn cold, rather high cost to insulate. Often quite remote, hence possibility of being' snowed in'. But regardless there are still some decent deals. France has been on my radar for a considerable period and get property reports with regularity.

Anyway most everything of better value, than the place on offer here is going for. Amazing sense of entitlement. Folk really need to be awake to 'fairy tale' prices of recent were but a blimp on the radar during a time of excess and easy money and not the 'norm'. The expectation that a house, be more classed as a shed like structure in some countries, by appearance, is not an on going wealth creating vehicle. Planet earth zooming in and reality not what many prefer to hear.

GarryP

Oh I wouldn't necessarily want to live in one (though there's quite a lot you can do with GSHP) - just contrasting how overblown is the Australian property market. If they had decent, fast, rail to satellite towns they easily have the scope to cut the legs from the inflated property market - only that's the only thing that works in Australia, real estate. Coal is going to die over the next decade, manufacturing is already dead, and many more wide spread droughts and farming will fall backwards.

As you say, the 4 bed Sydney house, past it's prime, it realistically worth a third of what they are looking for - but will the politicians allow that level of correction to the market?

Moses2013

This was in April. The good old days:-) https://www.domain.com.au/news/red-b...180430-h0zg7y/Red brick Chatswood home sells for $2.5 million – $750,000 above reserve

A man who inherited a quaint red brick house in Chatswood a little more than two months ago has won the property lottery after the deceased estate sold for $2.5 million, a whopping $750,000 above reserve.

The home last sold in 1971 for $8000 and has since been handed down to three different owners in that time.

It was last inherited just two months ago when the previous owner of the home passed away.

the troubadour

I saw that. No doubt the reason why present inherited ownership feels 'heartbroken'. They couldn't even get to reserve price of $1.7 million. One can only hope that a $1.67 offer that vendors refused, will it be lived to be regretted. when $750,000 will be pressed to get? I do hope so.

Beoz

This was 2 weeks ago. Smaller land size. 2.3 Mil.

129 Fullers Road Chatswood NSW 2067

https://www.realestate.com.au/sold/property-house-nsw-chatswood-129016638

Beoz

You've been banging on about how housing shouldn't be treated as an investment. By what you said above and what your accountant is doing, you are both just playing the market, coming in and out when you think the market is at the right times.

Of course there's nothing wrong with playing that game - its business after all, but if you are really serious about buying a house to live in then you wouldn't care what it costs to buy, as long as you can pay the mortgage up to about 8%. Of course if a Chatswood 3 bidder is still out of price range then I understand your grievance. Whilst that 1.7 might have been achievable 2 years ago, the banks have downgraded your borrowing power.

However, all is not lost.

Property runs in cycles. The latest downturn (in some places) is due to the banks slowing down the supply of credit. Let's call it public healing from the banks. But at the end of the day your superannuation fund demands maximum profit from the banks. Let the banking news die down a little and watch them open the supply up.

the troubadour

The latest cycle is due to banks being forced to arrive at an understanding of sorts that the 'easy ride' of loaning out money (for unproductive largely ) housing loans , irresponsible many would add, has been called out . The question being how far property will indeed fall as present prices are beyond feasibility would tested against all measurements, Those being yield and affordability. Of course the government will be unlikely to fully enforce the regulatory requirements to keep the financial sector in order, and after an interim period it may well a return to 'normal as possible' business. The banking sector after all resist responsible corporate behaviour to date, as underlined in recent Royal Commission, but then beyond certain 'perceptions' there will always be the public purse to fall back on if the over inflated market really took a well deserved hit and prices halved or worse.
Turning housing into a speculative form of wealth creation was never a sensible or indeed wise move and never should have been allowed. Thanks to the Coalition (who else) for kicking it off largely around the turn of the century.' Playing the game', as you put it, as plenty of health warnings that should be flashing with even industry pundits, saying 15 to 20% reductions perfectly feasible. Bit on the conservative side likely when one considers Sydney house inflation over past half decade, but there you go. Play the house of cards Ponzi by all means. Casino economics is hardly 'business though' more a game for chancers (believe me have known a lot of them)
My accountant is top of his game in Perth, reason I use him, regardless of fees one pays for top drawer advice Not industry tarnished spruikers that have inflicted such harm on the economic health of too many without a sign of conscious bothering them.

The only grievance I have is the destructive quality to living standards that housing has become. No earthly reason why I would ever likely partake in Australian housing until the very least value and sense is returned to the market.
Chatswood, largely one suspects being a result of Chinese market being tightened as a result of Chinese government policy. Although a lot now also the result of negativity, finally finding a channel to take off and as desired curtailing interest. (saves RBA raising interest rates and really whacking the economy)