Auction adventure…

10th April 2017….Auction time tonight!!! 2 beds, 1 bath, 1 park….harbour views!!

20170410_173302 (2)Always nerve-wracking, with the excitement of the bidding game. The market has not cooled down in Potts Point!!!

We’re looking for the right place, at the right price, to make us money quickly.

There are 5 places on our radar. Pros and Cons for all of them….trading off size, parking, views and potential to add improvements cost-effectively.

First one out of the barriers….6 Macleay Street….it’s a bit like a strategy race to the finish…and Mitch is in Melbourne hosting a dinner but linked in via mobile to the auction.

Bidders register and hold their cards close…

Everyone is cagey…checking out the competition, and then their are the ‘on-lookers’ trying to use the auction to gauge the value of their property.

The’re at the barriers…. quiet descends….. and they’re off…

  • Calls for first bids……SILENCE….. no one wants to be first. 
  • ….still SILENCE…… still no first bid…. do we start it off, or wait?? Mitch is on the phone ….. the sounds of the Southbank, Melbourne are in the background.
  • There it is!!….first bid, from across the room….$1,100,000….and….the auctioneer doesn’t accept it. 
  • We now know where they are pitching the price…..a first bid of $1,200,000 is being asked for by the auctioneer. We figure they are trying for north of $1,300,000. On our figure’s we can’t flip and make money… but who knows what could happen…
  • We quickly do the sums and confer via phone…… anything over $1,250,000 and we don’t think we can turn a profit…… 
  • new opening bid….$1,200,000
  • …we bid…..$1,210,000
  • counter comes in ….$1,220,000
  • …. we consider…. check in with Mitch…. consider the sums….we counter ….$1,230,000
  • ….. hesitation from the other side….no other bidders enter the game….
  • counter bid……$1,250,000…. that’s at our limit to make this property work….
  • Auctioneer tries to get us into the game…. but we can’t make the sums work….
  • …we have another auction tomorrow, so we can move on …… and then the auction stalls…with no counter bid from us its at $1,250,000… our limit…. should we bid!!??
  • The Vendor confers….Agent comes back in ….and the property is not on the market….they really do want a lot more…the apartment is only 65 square metres… they want over $20,000 per square metre…
  • Auction is still stalled…..more coming and going….more discussion…. the bidder raised his bid…. to $1,260,000
  • and the auctioneers comes back to us…. trying to get us to keep the game going…. the sums still don’t work. 
  • and the property is sold!!!! – 62 square metres, 2 bedrooms, 1 park, harbour views… at $20,322 per metre of living area!!!

On to the next property…..1 bed, 1 bathroom, 1 park…. Potts Point….. no view… around 53 square metres… on this auction result this place might be around $1 million!!!!

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