Bargain Property in Tuart Hill? WA villa listing reduced $110,000 in 3 years
There are certainly opportunities in the current 2019 market to pay less than the last price.
But is there really such a thing as buying a bargain when it comes to property? And where are they?
This series of articles looks are specific examples of sale price or asking price falling.
We take a look at where and if possible why this is happening.
We came across this property for consideration.
A Tuart Hill, West Australia villa on the border of Joondana has seen it's listing slashed by $110,000 since 2016.
Originally listed for $299,000 - $339,000, the asking price was reduced 5 times over the course of 2 campaigns which ran through 2016 and 2019.
Simon Pigliardo of Ray White is marketing the listing which is currently priced at $229,000 to $249,000.
Situated at 3/98 Tyler Street, the villa is one of eight in a small complex.
Set on 64 sqm, it is at the top end of Tuart Hill.
Built in 1978, the property has a history of selling in under two weeks and below the listing price.
The time the property spent on market during previous campaigns is significantly lower than the current median days on market in Tuart Hill, which is 53 according to CoreLogic.
When listed for $120,000 in 2001 the property sold in 11 days for $119,000, similarly when last sold in April 2003 after just 5 days on market it sold for $140,000 with an asking price of $147,500.
The trend has continued even in it's most recent sale, the home was listed for just 3 days in December 2003 before transacting for $147,500 despite seeking $152,000.
First listed as a rental in 2011 and 2012, the villa had an asking price of $300/pw and $330/pw respectively.
More recently in January 2017 and February 2018 the property was marketed for rent at $240/pw.
CoreLogic has the median asking rent for Tuart Hill at $300/pw, $55/pw more than what the vendors last sought in February 2019 when the property was listed as a rental for $245/pw.
Property Observer advise that it is up to you to determine if the offering is a truly beneficial bargain.
Remember buying at the bottom of the cycle is fraught – as you can't really precisely pick the bottom nor know just how long until you see some price growth.
Be aware you could be buying a poor quality property in an area with ongoing issues of oversupply of stock.
The oversupply could be also putting downward pressure on rents.
Other price declines could be because the vendor needs a quick sale or paid way over the top on its last purchase chase.
Property Observer suggests property purchasing really does need to be a very well considered proposition with a long term mindset.
As a part of this series, we've already had a look at properties in Mount Eliza, and Central Geelong and East Perth.
