But when the market started to turn this year, they tried to bail on their investment.
Already spent $500,000 for the works. Will need about $250,000 interior works for your personal choices of flooring, kitchen and MBR bathrooms fixture, paint and partition layout, sprinkler & sewage upgrade. Permit with floor area 3497 sf plus bonus open space 400 sf of crawl space 3'11" high in the basement. Roof top has some winter water view with a flat roof in drawing for a potential roof top deck.
Quick $2.1m price for handyman or contractor who can do some finishing works and resell it easily for $2.6m-2.8m and up once completed.
Reason to sell - my partner and I have different tracks for our train of thoughts now.
But instead of $2,100,000, their asking prices has now dropped to $1,599,000.
Their focus has also shifted from finding someone who might be interested in finishing the reno, to seeking a developer who will tear it all down and build a new mansion (i.e: someone catering to HAM).
If nothing else you have the primary reason potential buyers aren't buying right now. A $600,000 drop in asking price in 10 months? Who wants to catch this kind of falling knife?
It shows you how real estate is massively overprice right now. The speculative frenzy we've been through is nothing short of astonishing.
One of the contributors to the comments section (hat tip Eric Langhjelm) advises that this property was purchased for $1,180,000 in 2009. If the speculators who bought it have indeed already sunk $500,000 into the property in improvements, these speckers are already in a loss position particularly when you factor in transaction costs and interest on any money borrowed to finance the deal.
You have to imagine that if anyone wants to buy it for lot value, prospective buyers aren't going to give a damn that these speckers have already sunk $500,000 into the house. I would be surprised if they could even fetch their original purchase price for the lot right now.
It's crystal clear now that our market is unwinding.
At $1,599,000... this property is still massively overpriced.
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