Earned half 1,000,000 in 9 weeks
Panorama of Sydney
Real estate prices in Sydney have meteorologically advanced over the last 30 years. According to some research, their value in the largest Australian city grew from 1991 to 2021, even to an incredible 2,000 percent!
Many investors, especially in the past period, managed to earn a lot of money by selling houses and apartments, bearing in mind that an annual price jump of over 30 percent was achieved. But what a Sydney couple did is unnoticed even in a city considered one of the most expensive in the world.
Namely, in just nine weeks, they managed to earn an unrealistic 600,000 dollars on the purchased real estate in Kensington!
According to specialized real estate sites, two lucky people recently managed to raise a lot of money in a little over two months, without investing a single cent from the day they bought the house ?! Also, the buyer bought this townhouse from them, without personally inspecting it, but the negotiation was completed only on the basis of an insight into the appearance and condition of the real estate via the Internet.
The couple, who wished to remain anonymous, were even initially under the impression that they had overpaid for the house. Namely, they hit the price of 2.55 million dollars for a townhouse with three bedrooms. They soon turned to another real estate agent, saying that they regretted spending so much money on the house and that they wanted to sell it and buy something cheaper as soon as possible.
Only a few weeks later, they received a call from the agency and were stunned. Namely, their agent found a buyer who allegedly missed several opportunities to buy a similar townhouse in the same area and was willing to pay $ 3.15 million, despite the fact that he could not even come to the inspection.
The sale was conditional on an agreement to sign the contract before the house was publicly announced for sale, which meant that the couple would have to pay a “stamp duty” fee of $ 110,000.
The remaining $ 490,000 gross from resale was theirs. In other words, they have earned $ 55,000 for every week since the house became their property!
According to Nerida Conisby, the chief economist of the “Ray White” agency, about five percent of the houses in Sydney sold during the last year were real estates in which the sellers owned the house for less than 12 months. However, most of these resales, unlike a home in Kensington, involve at least some degree of investment and renovation of the property between buying and selling.
Six million in two years
Another incredible resale took place in Sydney about ten days ago. A luxury five-bedroom house in Bellevue Hill, built in the 1960s, was sold at auction for $ 12.2 million. That was twice the price the sellers paid two years earlier (6.1 million). The seller did not make any renovations on that house in two years!
“Flip” the metropolis
With five percent of resold real estate in the first 12 months since its purchase, Sydney is convincingly the leading “flip” city in Australia. Sydney records even more than twice the number of homes resold in the first year (five percent of all sales) than Melbourne (2.3%), which is the second largest city in Australia. Hobart (4.5%), Adelaide (4.3%) and Perth (4%) are ahead of Melbourne.