澳洲Australia property Mortgage stress auction in Morningside, i

在澳大利亚


I've come across this house up for a desperation auction which strikes me as a really a good dual income investment opportunity.

It didn't suit me because I'm looking for a PPOR, not a IP, there's a salt water pool instead of a garden, and it's close to a railway line and I don't like listening to trains.

But, for those of you who know this area, it's in a bit of a plum location - walking distance to train, walking distance to bus, walking distance to shops (Woolies, Coles, coffee, deli, fruit, pharmacy, restaurants, newsagent, bank, PO), walking distance to one of the best schools in the area, (Cannon Hill SS), walking distance to the Colmslie pub, petrol station, surrounded by parks, bowling clubs etc. Close to Wynnum Road and just a couple of k's from the Motorway.

The situation is that there has been a relationship breakdown and the bank is breathing down their necks. The house will be auctioned July 10 unless sold prior. She's had several offers but based on contingency sales and she can't wait that long. Even though she's extensively remodeled she knows that she's going to come a cropper and not get her money back on that.

Residex has it valued at about $456K based on 2 bed 1 bath. However, it's now 3 bed 1 bath upstairs and one very spacious apartment underneath, so that's an extra 1 bed 1 bath plus kitchen. Separate entrance to each place. She bought it for $385K a year ago and put a lot of money and hard work into the renovations. Both the upstairs and downstairs are very pleasant and have been done with skill and flair - it has great tenant appeal.

Median price for Morningside is $563,500 and capital growth in the last year has been 7%.

The auction reserve is going to be incredibly low - enough to cover the bank mortgage but there may be nothing left over to cover her reno's.

The downstairs is legal height but I'm not sure about the council certifications and nor is the owner. That part was all done prior to her reno's. It's possible that a new owner would have to get retro certificates before renting out - I'd certainly look into that if I was buying it.

Based on my observations of rents in Morningside at the moment, it would be conservative to say that the upstairs could rent for $400 and the downstairs probably $300. The owner has a letter from a PM stating more than this, but the market has flattened here in the last few months.
Here is the property;

http://www.domain.com.au/Property/ForSale/House/QLD/Morningside/?adid=2008381488
http://www.realestate.com.au/property-house-qld-morningside-106556818

Putting it on Somersoft because I think it could work out for someone, but do your own DD. I'm willing to answer any questions on things that I've seen with my own eyes.  

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If you look at all the sales data for that property from the 4.4.1985 when someone paided 47k and track all the sales on this property and some who have owned this property made zero,the only person that made serious money was the investor who bought in 167k in 2002 and sold for 385k in 20.4.2009,,the only problem with something like this is very small block,and if all the reno work has been passed and had the final inspection,once you strip away all the photo extra's what do you have??,did the agent tell you all the personal info on these people because if they were to find this post which they may well you seems to know a lot about this property,even how low the auction price will be:rolleyes: ..willair..  

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willair said: ↑
If you look at all the sales data for that property from the 4.4.1985 when someone paided 47k and track all the sales on this property and some who have owned this property made zero,the only person that made serious money was the investor who bought in 167k in 2002 and sold for 385k in 20.4.2009,,the only problem with something like this is very small block,and if all the reno work has been passed and had the final inspection,once you strip away all the photo extra's what do you have??,did the agent tell you all the personal info on these people because if they were to find this post which they may well you seems to know a lot about this property,even how low the auction price will be:rolleyes: ..willair..Click to expand...

I talked to the owner myself last Sunday afternoon (property close to where I live) - that's where the info comes that a rea would not pass on. I told her that I would like to put the info on a public forum and she was fine with that. I do not know her personally - I don't know her last name.

It's interesting what your analysis shows with the history of the property - but many props are like that. People seem to assume that all properties make a profit, but they don't. There are so many people who buy too high and overcapitalise for the street and the area and wonder why it's so much harder to profit in real estate than what everyone and the big glossies told them.  

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Amadio said: ↑
But, for those of you who know this area, it's in a bit of a plum location - walking distance to train,

It is walking distance to the train LINE but Cannon Hill station and Morningside station are both a fair hike. I wouldn't like to walk to either. It is pretty much in the middle of both stations. I imagine the railway line right over the road is one of the reasons this house will perhaps be a bargain.

.... walking distance to bus, walking distance to shops (Woolies, Coles, coffee, deli, fruit, pharmacy, restaurants, newsagent, bank, PO), walking distance to one of the best schools in the area, (Cannon Hill SS), walking distance to the Colmslie pub, petrol station, surrounded by parks, bowling clubs etc. Close to Wynnum Road and just a couple of k's from the Motorway.

I agree with the rest of this. Great position to be able to walk to get anything you need.

Putting it on Somersoft because I think it could work out for someone, but do your own DD. I'm willing to answer any questions on things that I've seen with my own eyes.Click to expand...
I think the house looks really nice, and would rent easily. I think she has done a great job and I hope she gets a good price.  

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Guess the walk to the train is a bit of a hike in the middle of summer. 1.3 k up Wynnum Road, about 15 minutes. I classify it as a walk since I do it. :)  

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Amadio said: ↑
I talked to the owner myself last Sunday afternoon (property close to where I live) - that's where the info comes that a rea would not pass on. I told her that I would like to put the info on a public forum and she was fine with that. I do not know her personally - I don't know her last name.

It's interesting what your analysis shows with the history of the property - but many props are like that. People seem to assume that all properties make a profit, but they don't. There are so many people who buy too high and overcapitalise for the street and the area and wonder why it's so much harder to profit in real estate than what everyone and the big glossies told them.Click to expand...
No problem that's all you can look at over the time period because the facts don't lie,and i hope the Lady you know sells it with still some money in her back pocket,it maybe just me but anyone who has any idea on property investing in inner Brisbane must be starting to ask the question
why are so many listing on the market and the high number of rentals
and most are not selling and if they do it is well below what everyone told them it was worth,maybe the start of something bigger,but i know one item for sure if you were to find anything within the 2 klm's ring on blocks above 1000sqm's with an old fibro bomdshell sitting on it once the new plan comes out those blocks will be priceless,from West End out to Annerley-DuttonPark-just a matter of time..willair..  

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Amadio said: ↑
Guess the walk to the train is a bit of a hike in the middle of summer. 1.3 k up Wynnum Road, about 15 minutes. I classify it as a walk since I do it. :)Click to expand...
LOL. I walked from Erica Street to the Cannon Hill train station every morning and afternoon with about a 10 kg school bag and going home it was uphill for the last bit. I would choose not to do it ever again, but I suppose if it is a necessity........

At least the "walk" from this house to the station would only involves a slight rise, instead of the hill I had to climb.

I just thought it funny to describe it as "close to the train" because that to me means close to be able to "get on" the train :D.  

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wylie said: ↑
I just thought it funny to describe it as "close to the train" because that to me means close to be able to "get on" the train :D.Click to expand...
Oh, like close your front door, walk across the road and buy your ticket. :cool:

It's all relative isn't it. I remember once visiting a station owner out in the red dirt and he opened his front gate with a flourish, said "we're nearly there" and 35 miles later, over seriously corrugated track in a landrover, we arrived at his front door. A cup of tea never tasted so good.  

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Amadio said: ↑
Oh, like close your front door, walk across the road and buy your ticket. :cool:

It's all relative isn't it.Click to expand...
I suppose it is all relative. I don't call a 1.3km 15 minute walk in summer (or winter for that matter) "close" :eek:.

I'm getting lazier as I get older :D.  

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