Quote:
Originally Posted by Polyal
While I am happy people are making money on investments I still dont understand where it is coming from and what overall position we are in.
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Yes, where is the money coming from?
When you hear of auctions going XX% ABOVE reserve then you would assume the reserve is fair market value.
There was a house recently in Sydney that went $1,000,000 above the reserve.
Now, lets assume the bank gave a valuation of the reserve, that means the buyers would have had to stump up that overpayment themselves on top of the deposit.
Very deep pockets indeed.
I know of one recent sale where a buyer needed to pull out because the bank wouldn't bridge the gap between offer and market value.
I'm looking at buying, and have attended several open houses.
Sales agents are still up to their shonky old tricks of blatantly falsely advertising what they are selling. I wish there was a governing body you could report them to that would actually take action.
I'm looking at buying one place that has a listed price and another that is going to auction. I'm curious to see how overheated the market is with the auction as the house is a total disaster and should go for land value.