Recently listed dream house. Sellers want $1,000,000-$1,100,000..

3migorengaday on 02/07/2020 - 23:22
Last edited 06/07/2020 - 10:59 by 1 other user

Hello ozbargainers.

I've been looking into the area for 2-3 years now.
I've always been outbid or just pushed out of the market due to the median price and high demand from international buyers. (I'm asian and not racist lol)

The house is located perfectly between my partner and family.

With supply going up, demand going down, whispers of "10%" or market crashes to property..talks of abolishing stamp duty…interest rates at an all time low..
What Would OZ Bargainers Do?

Background information.

South-east suburbs Melbourne.
Currently on 85k pa, partner is roughly the same.
We both currently already own a investment property.
Our jobs are quite secure with minimal turnover.
If we are unable to make re-payments we'd consider liquidating assets and being flexible.

I personally think for the land (250sq) it's quite small, however it's niche.
I'd hate to link the property incase a billionaire ozb user beats me to it.

Poll Options expired

  • 9
    Monitor the market.
  • 23
    Do not buy with a 10ft pole.
  • 34
    Consider a low-ballish offer.
  • 97
    Hold and take emotion out of the purchase.
  • 209
    Buy now, regret later.
Home & Garden

Comments

    • 3migorengaday on 03/07/2020 - 19:41
      +1

      Forgot to mention there's 600sq of livable space + a large backyard.

      • JimB on 04/07/2020 - 00:04

        600sqm of living space + large backyard on a 250sqm block doesn't compute.

        • dny on 04/07/2020 - 00:11
          +4

          it's built up, not out.

          • JimB on 04/07/2020 - 22:00

            @dny: 4 levels?

            • dny on 06/07/2020 - 11:36

              @JimB: If I were to guess I'd say 200sq x 3 levels and 50sq for the back yard

              • JimB on 06/07/2020 - 17:01

                @dny: Lol. Impossible. Think about it.

                I'd say the OP has grossly overestimated the size of the property.

                600sqm of living area is nearly 65 squares! Excluding garage!

                There are no 60+ square townhouses in the waverley park development.

                There's also a thing could setback so you're not going be able build to the footpath.

                I'd like to know what is the actual size of the house.

  • downhillar on 03/07/2020 - 19:58
    +1

    I say do it. Of all the purchases you make, this is probably the one purchase where you should splurge a little if it means you get your dream version. That is assuming you know you can afford it.

  • serpserpserp on 03/07/2020 - 20:40
    +2

    OP: Sell your investment properties. Buy your dream house. Simple.

    • 3migorengaday on 04/07/2020 - 23:26

      Backup plan if shit hits the fan xD

  • punter1 on 03/07/2020 - 20:50

    Let us see your dream house.

  • Herbse on 03/07/2020 - 21:03
    +8

    250msq in Mulgrave for $1M?

    I'm assuming its one of the new double/triple storey townhouses in Waverley Park. But $1.1M is excessive. There's larger plots in Carlton for the same price, and you're not walking distance from Noble Park.

    I dont get it, I guess the people who sell those plots are marketing genuises.

    It sounds like you've already made up your mind and was looking for validation. I'm sure you'll be happy, I know lots of people who bought up when prices were $500k and that was expensive at the time and are very happy.

    Personally, if it was me I'd either spend my $Mil on a property adjacent to the city or a McMansion out in Casey

    • Ghost47 on 03/07/2020 - 23:41
      +1

      I dont get it

      I think delusion is the word for it.

    • centrelink on 04/07/2020 - 11:17
      +1

      Why city though?

      • Herbse on 04/07/2020 - 12:47
        +1

        Property value makes more sense and investment increases is much larger

      • the4thzodiac on 04/07/2020 - 19:39
        +1

        this is one thing that always confounded me. i get it if location is within 1-2km of CBD, mil+ is somewhat expected. not sure why it gets that way 20-30km away. then i learnt about schools and future proofing.

  • dajiska on 03/07/2020 - 21:58
    +1

    If you have worked out your numbers, and lender is ready to provide the funds then go for it as it is good time to buy your dream house!

  • Trying2SaveABuck on 03/07/2020 - 21:59
    +3

    When it comes to buying a place to live - you rarely get a 'good deal' anymore there is an emotional side to buying a owner occupier property esp when you intend to 'nest' in an area for a long time (ie have children).

    If you think this is the house for you and your partner (im not sure if you have kids) but if you can see your family being happy it that house and it meets your 'practical needs' i would say pull the trigger buy it accept there might be some capital losses in the short term (2-3 years) but in the long run there benefits may not all be financial but they will be personal.

  • Punda on 03/07/2020 - 22:00
    +2

    Why aren’t you living with your partner? You’re factoring his/ her income and have investments together so why do you say you want to live halfway?

  • darkchoc on 03/07/2020 - 22:27

    Also, now's a good time to look into suburbs like mount Waverley or Glen Waverley that would normally be more expensive…

    Prices been dropping.

    1/24 Morshead Avenue, Mount Waverley
    https://www.domain.com.au/1-24-morshead-avenue-mount-waverle…

    Mount Waverley
    https://www.domain.com.au/mount-waverley-vic-3149-2014572271

    2/97 Bogong Avenue, Glen Waverley
    https://www.domain.com.au/2-97-bogong-avenue-glen-waverley-v…

    Access to train lines and school zones are long term drivers of keeping values

    • lainey13 on 05/07/2020 - 11:37
      +2

      I saw those exact two properties for sale a year ago. Do not use those two examples as prices for MW and GW. Those listings are very dodgy, and despite expressing interest I never got inside to see them. Not to say there isn't stuff within OP price range but those two are not good examples to use.

      • darkchoc on 05/07/2020 - 14:52

        Fair enough.

        Just highlighting what a search shows up.

      • Ghost47 on 05/07/2020 - 15:15

        Wow, can't even trust all the listings you see online? Wtf.

  • nobro25 on 03/07/2020 - 22:28
    +12

    Damn 3 investment properties. I'm struggling just paying my single apartment. It's not even an investment property. You guys still wanna buy more. No wonder the property prices are Jacked!

  • Aerith-Waifu on 03/07/2020 - 22:37
    +2

    I had a reale estate agent knocking on my door just a few days ago, nice bloke and we spend half an hour talking. He reckons once the JobKeeper ends, there will be a lot of houses on the market due to mortgage stress. If I am you, I would wait till at least November to see how the market is going to be.

    • CalmLemons on 04/07/2020 - 22:43
      +1

      People who own homes that are $1-$2m generally wouldn't be on jobkeeper when it pays only $3000 a month…..

  • Arch113 on 03/07/2020 - 22:44

    Hi OP, would you be able to give some rough details on your investment property too (type/size/approx. value)? Might help taking into consideration before offering suggestions.

  • diceman99 on 03/07/2020 - 22:51

    Its not a good time to get into to much debt.
    Lots of insecurity in jobs, yours, your partners and your tenants.
    Investment properties prices may go down.
    But if its your dream home, then its not for investment purpose, its for lifestyle. So spend whatever you can afford on the house you want to live in.
    But I would suggest keep you debts to a minimum, that may involve selling your investment properties to get your dream house.
    You will be in a very bad spot, if both PPR and invesment properties went negative equity and you your partner or tenants started struggling.

  • SpaceNinja on 04/07/2020 - 03:55
    +1

    OP I think the unique location, views and configuration of this property, also make it a bit resilient to market adjustments. Can't say the same for the run-of-the-mill homes, built in bulk. But seems like with 2x the average price the uniqueness is already factored-in :-(

  • ksun1985 on 04/07/2020 - 08:40
    +1

    If you believe this if your dream home and you can see yourself raising a family there, go for it! Personally if it were me and I was set on that suburb, I'd be looking at some of the other properties there. There's some nice ones for 800k to 1.1m on much bigger land. If you are flexible on location, I'd be taking that money to Mt Waverley, Glen, Burwood, Box Hill Sth… And looking for a nice townhouse. Much better amenities, schools, etc etc.

  • dannyboi on 04/07/2020 - 11:04

    As someone who has been looking into the market in recent years and wanting to purchase a house, I would provide the following comments for consideration:
    * Does that price compare well against similar ones in that area? If it's slightly more expensive than surrounding ones, within reason, but ticks all of your boxes then that's something to consider accepting.
    * Does it meet your current and likely future requirements? There are some compromises that are temporary (e.g. the house can be painted, the garden can be landscaped, etc.) whereas others that are permanent (e.g. not having gas, not being able to have a larger backyard, not enough rooms)
    * What is the planned time through which you plan to pay it down (including offsets/savings above the minimum repayments). Personally, I'd prefer to be able to pay off a house within 15 years or less instead of focusing on minimum repayments over 30 years. That extra time is a buffer for things like loss of income, changes to family (e.g. kids) and being able to have finances for other things.

    Overall, I think the focus isn't too much on the price itself but more about how it will suit you in the short & long-term and your capability of servicing the loan whilst still having a life.

  • HKS on 04/07/2020 - 11:04

    1 million dollars for some shelter. wow lol, here i am with 1.5 acres 20km from adelaide cbd and living in a shed house.

    • TightAl on 04/07/2020 - 12:58

      20km from adelaide CBD would be the equivalent of 60km in melbourne, not everyone's cup of tea really.

      • HKS on 04/07/2020 - 13:02

        this is why australia needs a bullet train system so people can live in towns away from the major cbd's but work in the cities

        • Ghost47 on 04/07/2020 - 13:24

          That's the dream.. but Aussies aren't as disciplined as the Japanese or South Koreans. Also our government is too proud to ask them for help.

  • [Deactivated] on 04/07/2020 - 12:09

    lol?

  • ToTheMoon on 04/07/2020 - 13:21
    +3

    your 3169 neighbour here. In my opinion, with your budget you should look at the suburbs that
    1. has public transport, especially trains,
    2. is closer to CBD,
    3. bigger land plus higher zoning,
    4. has good public schools

    This property doesn't tick any box above. Maybe think about:
    1. 3168/3150, which is closer to PT, or
    2. Caulfield, Malvern for living closer to CBD, or
    3. same location but bigger land, even the house is old (you can renovate it), or
    4. 3149/3150 for better public schools

    Believe it or not, Mulgrave will never have trains

    • Ghost47 on 04/07/2020 - 13:26

      I can't imagine it ever having trains either. Maybe a tram down Wellington Rd to Rowville, I think that idea was being flirted with a few years ago?

      • ToTheMoon on 04/07/2020 - 13:36
        +1

        Honestly I think it’s nearly impossible to build a tram rail either cuz the land price is so expensive and the government can’t afford it.

        If people do need better PT, the government will start from sending more buses, then replacing 2 axle buses with 3 axle buses, then rails.

      • Herbse on 04/07/2020 - 14:26
        +1

        People have been claiming a train line to Rowville will happen for decades. But this is mainly done by a handful of property owners who are incentivised to increase the value of the area by keep constantly campaigning for it and making people think it will eventually happen. The government has never made any plans to do so.

    • 3migorengaday on 04/07/2020 - 23:29

      I'm in 3169 at the moment.
      My partner and I mainly drive. Public transport isn't really a concern.

      I have experience with a property in Caulfield and it was not great.
      The second option is to buy 1H.H of land and to build through Carisile Homes if unsuccessful.

      School zoning isn't an issue with addresses we could use for enrollment.

      Clayton South is honestly a hidden gem.

      • ToTheMoon on 05/07/2020 - 01:16

        3168 and 3169 are absolutely promising. These plants and warehouses can be pulled down for building new schools, commercials, apartments even shopping centres. But for other suburbs, it’s very hard to find such big lands for big development. It has to got the best potential among SE suburbs.

        I think there will be a multi-storey shopping centre in Clayton in next 10 years, as long as new immigrants and young people keep the community gentrifying.

      • greatlamp on 05/07/2020 - 11:33
        +1

        Saying you don't care about public transport is like not caring about the local shops because you buy online, the local schools because you don't have kids, nearby parks because you don't use them.

        It is a driver of value, it makes your home more attractive if you ever need to sell or rent it out

  • djmm on 04/07/2020 - 16:14
    +1

    If you plan to have family, better go at least 300+ sqm one

  • Your Friend on 04/07/2020 - 16:54
    +1

    would it be noisy right next to the oval?

  • DeeTrance on 04/07/2020 - 16:54

    If the house enhances your quality of life, go for it.

    For me quality of life is larger block of land. A larger 2 car garage, a deck, backyard and space for a a workshop to build things, make things, fix things. A nice wide street with plenty of parking where 40 family members can visit without having to park their cars hundreds of metres down the road, and cars can double park without zig zaging.

    I would slit my wrist if I had to live in a place somewhere like where Waverley Park used to be.

    • richmond12 on 04/07/2020 - 23:11
      +1

      Sounds like you want everyone wants haha

      All depends on your budget and location is key

  • richmond12 on 04/07/2020 - 21:52
    +1

    Is the place 3 or 4 bedrooms?

    I guess those places Waverley park has a certain historic feel to. It would be relaxing to hear and see the park. ESP if you love the hawks or have friends that are

    • Dr Techno on 04/07/2020 - 22:43
      +1

      dont think Waverley Park is relaxing especially being right next to the freeway. I grew up across the road, freeway would always roar but it didnt bother me back then. moved one suburb out and now I cant even hear a pin drop at night.

      • greatlamp on 05/07/2020 - 11:27

        Inside the park is quiet. The noise barriers are doing their job.
        Still, it has no public transport

        • Dr Techno on 05/07/2020 - 15:03

          noise barriers might help but it doesn't fully cut out the sound. I lived 1 block away from the freeway, I've heard worse on cold mornings windows can tremor a little if a truck engine breaks. I wouldnt say it was bad. public transport is okay bus stop right outside but better to be on the 900 bus route which has a bus every 10 mins in peak

    • 3migorengaday on 04/07/2020 - 23:31

      Spot on, it's more of a compromise for a lifestyle choice versus land which we could always look into later and build.

  • CalmLemons on 04/07/2020 - 22:42

    250sqm. ouch. that's $4400/sqm

    • Gerry H on 04/07/2020 - 23:51
      -2

      squares, its 2322 m^2

  • Gerry H on 04/07/2020 - 23:50

    real estate defies logic just like stock market. what recession? what house price pullback? buy the dip, people will keep buying even if they have no jobs, don't be like the idiots with no balls who constantly whine about the stock market pushing higher and higher and leaving them behind. prices only go up for houses, not for apartments though.

    • greatlamp on 05/07/2020 - 11:29
      +1

      Real estate is quite different. The majority of the market will simply not sell if prices dip. Supply is very volatile.

      The stock market on the other hand has fixed volume and volatile prices.

      • Gerry H on 05/07/2020 - 13:32

        for ppor yes. investment properties (mostly apartment) will sell because they can't hodl multiple properties collateralized by each other when the rental market goes bonkers (right now). good house ppor in a good suburb will never drop in price, they "only go up" because of the reason you said, and that buyers will buy anyway even if their income has significantly dropped (plus rich foreign cash buyers). i hope our useless government start severely taxing foreign investors, like literally scam money from rich foreigns by luring a ton of them in at first then change tax policies.

      • cloudy on 05/07/2020 - 20:30

        can you explain the "fixed volume " part. I don't get it

    • Drakesy on 06/07/2020 - 18:16

      Prices don't only go up for houses. Yes maybe in the past 40 years Australia has defied recessions however we're currently in a very unique situation, with negligible immigration, household confidence and spending at record lows. People aren't magically going to make money appear, if demand (immigration) drops and supply is unmoved/goes up because mortgages are going backwards thats when the housing market collapses.

      It's easy to say that we'll continue the same way we have for 40 years, but these once in a generation events are and will be the catalyst for a correction. House prices on the periphery of town will experience the greatest pullback with those in inner suburbs plateauing, reducing any incentive to invest. Just look at Perth.

      Also if history has anything to say, land prices inevitably rise at the rate of inflation/cpi with boom bust cycles in between.

      • Gerry H on 07/07/2020 - 00:01

        im not a property investor. but i will be laughing at you all the same when houses shoot through the roof. i already said fundamentals=meaningless, its no different from the stock market right now.

  • [Deactivated] on 05/07/2020 - 08:06

    You probably hate being outbidded but yet you bought another property yourself which someone probably wanted as a home.

    • 3migorengaday on 10/07/2020 - 14:41

      Nope, I bought the properties at my max with no fluffing around or other offers.
      Each property owned was accepted within the first week of open inspections.

  • BobCobb on 05/07/2020 - 08:15

    Lot of money for Keysey.

  • morebunnings on 05/07/2020 - 10:10
    +1

    I'm in the sunshine coast, QLD, and its really confusing times. Went to 2 auctions yesterday and BOTH were cancelled as the houses were under contract, in the mid 800k range (which is higher end for the sunshine coast).

    Either there are still heaps of buyers pushing up the market here, or sellers are eager to sell & lock down a contract because of a possible bad auction result (like the recent post on OzB from the guy selling his investment at a loss).

    Of course real estate agents told me the markets going up, but in reality no one knows what is or is going to happen.

    If your gut is telling you yes, you can afford it, and you are certain you are not just over eager from FOMO because of previous missed offers, then do it.

    • roundnumbersonly on 05/07/2020 - 12:55

      That's typical of an agent to build up their database so they can spam you. Im waiting until the end of jobkeeper (to flush out those who need to sell vs those who can hodl).

    • Gerry H on 05/07/2020 - 13:39

      plenty of buyers still. i tried to tell the real estate doom & gloomers now is the time to buy a house, but they keep telling me "fundamentals are bad", "housing prices will crash".

      news for doom & gloomers: fundamentals don't matter for houses in semi decent surburbs. just like fundamentals don't ever matter for penny stocks, or the current stock market in general.

  • lainey13 on 05/07/2020 - 11:41

    Hey if it's perfect then go for it. But why is it perfect? I never found a perfect property. It's always 3 out of 4. Price, quality, size and location. It was always only ever three out of four that ticked the boxes! Is it only location? Bear in mind good location for you is not good for future buyers perhaps.
    Also having lived in a 3 storey place before prepare for multiples of things because going from the top floor to the bottom floor is a pain in the butt. And moving large things to the third floor was a nightmare. But if your knees can handle it then I guess you will be OK.

  • [Deactivated] on 05/07/2020 - 13:22

    Given all the options you gave, it seems you have already made up your mind.

    • centrelink on 05/07/2020 - 17:18

      I'm here just for validation okay?

  • DeeTrance on 05/07/2020 - 14:57
    +2

    Well there's a lot of cashed up Americans and Hong Kong people seeking refuge in Australia, moving away from the dramas back home. That is also a huge factor in driving up house prices.

    A small broom closet can cost $2 million in Hong Kong, so a comparative 200m2 shoebox at 1.5 million in Melbourne & Sydney is like a mansion for them.

    • Ghost47 on 05/07/2020 - 15:18

      They should funnel those people to Brisbane, Adelaide, Perth and Darwin instead.

  • acersaurus on 05/07/2020 - 22:26

    I would not buy, better to wait and see how the economy is in 6-8 months. This is not a normal recession, and we don't really know how low house prices could go.

    There are plenty of houses out there. A lot of houses are fairly interchangeable, a house is not your soulmate afterall.

    If you wait 6-8 months its highly unlikely prices will be higher, rather they will probably be lower.

  • mademoisellebd on 06/07/2020 - 00:10
    +1

    What does career / income progression looks like for you and your partner?

    This is probably not the response you're looking for but repayments are going to be 50% of your combined household income and that's awfully high, particularly if you're not envisaging significant pay bumps in the future. Interest rates are at record low - and whilst it's unlikely to increase any time soon you need to be comfortable with being able to service the loan if it increases in the future. I know you said you guys are frugal but this doesn't leave a lot of wriggle room if one loses their job or loses the ability to work. Are you thinking of having children in the near future? That could decrease your household income if one of you needs to drop down to part time work, otherwise childcare costs aren't cheap either…

    Have you spoken to the bank / brokers about getting a pre-approval for that amount?

  • tukulzz on 06/07/2020 - 18:31

    Let me know if I can offer any help, I do know couple developers selling in the area. I know there's one that ask for under 1 mil in Glenny. Its brand new and construction is almost finish

  • nurbsenvi on 06/07/2020 - 19:35

    Well 29 years down the line would it even matter?

  • inasero on 10/07/2020 - 10:36

    there is never such a thing as a "dream home" - another opportunity will always come along. Also they're dreaming if they want $1mil plus for 250 squares, for a house in suburban SE Melbourne. Let me guess, this is something off the plan or just recently built?

  • 3migorengaday on 10/07/2020 - 11:17
    +2

    Update.

    They have accepted our offer.

    Thank you all for the moral support.
    Will keep my eyes peeled on some home appliance bargains.

    • hoey888 on 10/07/2020 - 11:22
      +1

      If you don't mind us asking, in Victoria, there is a price guide provided by vendors in the statement of information.

      Did you
      a) Buy within the price guide given?
      b) Provide a low ball offer
      c) Provide really exceptional terms? (ie unconditional offer or short settlement?)

      • 3migorengaday on 10/07/2020 - 14:39
        +1

        a) Sort of, in terms of the median suburb price.
        b) We initially began with a low-ball ish offer but worked to a comfortable number.
        c) 90 day settlement with the flexibility of 60. Subject to finance

        The contract actually had some ridiculous clauses which definitely favoured the buyer i.e early terminal due to delays with PeXa settlement etc, however, we have an amazing lawyer who gave us advice that you would be happy to pay for.

    • Fever4shakin on 10/07/2020 - 12:30
      +1

      Congratulations :)

  • richmond12 on 05/02/2021 - 19:32

    Looks like OP got it for $990K in the end based on sale date and postcode all in this thread. Not hard to work out the property.

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