37 Seaward Loop
Sorrento
Bought 11-09-2007 for $2,175,000
Desperate Sale all offers by May 13th 2011 Considered
(Still Wants over $2.68 Mil?)
Bought by professional home renovator & property Flipper Sasha de Bretton to live in for 12 months & then sell & make a $1 million dollar profit.{TAX FREE} Or so the plan goes.
{See her web page: http://www.milliondollarmakeovers.com.au/index.html}
However 3.5 years later she is stuck with a property she cannot shift
(Has been for sale for 2.5 years)
{See her web page: http://www.milliondollarmakeovers.com.au/index.html}
However 3.5 years later she is stuck with a property she cannot shift
(Has been for sale for 2.5 years)
No doubt Sasha has been successful with this strategy in the past but even this
"Professional Renovator / Flipper" is going to get smoked in this market!
Bought for $2.175m &spent $200K renovations plus other costs = $2.5 mil
She brags on her website that it is valued at $3.5mil to $3.7mil but in the end is only able to advertise it for $3.0 mil when she lists it for sale 12 months after renovating it.
Still not a bad profit however between buying it & listing it for sale the housing market changed. No longer could speculators flip property for massive profits.
Still not a bad profit however between buying it & listing it for sale the housing market changed. No longer could speculators flip property for massive profits.
Sasha has been holding $2.5 mil debt on this property for close to 4 years. However if her strategy worked all she intended to do was flip it in under 12 months!!
So now the interest on this has cost her $700K Plus!!
So now the interest on this has cost her $700K Plus!!
Yes she has had a house to live in but she could have rented a house just like this in Sorrento for under $150K for the same period.
So her actual holding / speculation cost has been over $500,000 This is why she needs $2.68mil to try and break even.
On top of the interest bill she has had to fork out for advertising etc for 3 years of marketing the property.
On top of the interest bill she has had to fork out for advertising etc for 3 years of marketing the property.
First Advertised for sale 23-05-2007 for $2,500,000
Property then Bought by Sasha 11-09-2007 for $2,175,000
(Approx $200K Spent on renovations)
Sasha then lists this house for sale 20-07-2008 as "EOI"
{Listed 3 months to get $3.5mil price. Clearly nobody willing to pay target price of $3.5 mil Plus?}
Price wanted advertised 18-10-2008 $3,000,000
{Interest rates in 2008 were 9.5% & the GFC has just hit so price reduced}
{Interest rates in 2008 were 9.5% & the GFC has just hit so price reduced}
Price reduced to attract buyers 10-01-2009 $2,990,000
(Another 3 months pass lets reduce it $10K that will pull in the buyers?)
Further Price reduction 28-03-2009 $2.59 mil to $2.89 mil (Still No Takers)
20-02-2010 Advertised as "EOI"
(No takers so property rested for a few months.)
Back on the market 6-03-2011 $2,680,000
So what do I think this property is worth in this market?
Sorry but I would not pay more than $1,850,000
So why do I think this property will only sell for $1.85 mil. ?
Follow this Link & watch 2nd last video story on Sashas web page, look at the "Cost Saving" techniques like a "GRANITE TRANSFORMATION" in the kitchens & Bathrooms instead of doing it properly & replacing the tops completely. Remember she only intended to "FLIP" the house in 12 months all it had to do was look like a Million Dollars. Makes you wonder what other shortcuts have been taken to achieve a maximum return?
Before
AFTER
CAN YOU CHECK SALES EVIDENCE? I HAVE ADDRESSES
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