Last weekend an Auction was taking place:
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I wasn't going to go, don't want to risk anything with my health, supposedly I am in the "At risk" category with the COVID-19 virus due to my other health issues, so I really don't want to get it.
I couldn't sleep Friday night, kept thinking "If it goes really cheap, you will kick yourself!" So my wife and I talk about it, decide we could bid to $20,000, but there would be little to no chance that would win... Especially when you look at the sale history on the property:
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Figured I would go just for a look and watch, not touch anyone or anything and see what it went for, "knowledge is power" sort of thing for when all the virus stuff blows over...
Got there early, had a walk around, seemed OK, had a look inside once the Estate agents arrived, seems OK but filthy...
Agent asks me if I want to register to bid, I reply "What do you think it will go for?" he says "$15-20k", so I register... He hands me the contract to look through, I flick to the last page and see the council land valuation (Just the land!) is $17,467 and think there is no way it goes under $30k, probably $45k seems reasonable, but anyway I'm registered now, may as well hang around.
Others turn up to have a look through, some walk straight back out again and leave. (I mentioned it was filthy right?
) By the time the auction start time rolls around there is just 3 people aside from the agents, the other 2 look like contractors/builders, so I figure I can see where this is heading, one of them will buy it, fix it, and rent it out.
That is a very common occurrence here as most homes are returning around 12.5% rent compared to buy price, so great investing opportunities.
Agent asks for a starting bid at $20k and looks at me, I wave him off, so he drops to $15k, I wave him off again, he says "We need to start somewhere!" so I say $8,000 just to start it going, there is that much in our savings so why not, by this point I just want to go home and have a nap...
He says, "I can't take that offer to the vendor they want minimum $20k", I motion to the other people and say "I'm just starting, others will bid." He comes back with: "You are the only one registered to bid."
Lots of phone calls to the vendor (A bank, it was a foreclosure.) Me calling my wife and my brother for advice, I remember the land valuation and raise my offer to $15,000, they ring the bank again and suddenly I'm signing contracts...
We bought it.
For $15,000!
