Young buyers in with chance
REAL estate agent Warren Daniells believes you'd go a long way to find a better leg-up into the property market than the last 10 lots going up for auction in the Bottle Tree Estate.
With reserve prices as low as $20,000 and no new competing developments likely for years, Mr Daniells, who works for Surat Basin Real Estate, said it was the perfect start for young buyers looking to get a foot in the market.
With the huge booms and busts of the past decade or two well in the rearview mirror, Mr Daniells said buyers could expect strong, but steady growth on the lots, which they could either use to gain enough equity to build within a few years, or pay it down, sell it off and buy a dream property elsewhere.
Stage three is the final section of the Bottle Tree Estate, so buyers in this stage would have a good idea of how the neighbour- hood was shaping up before buying in.
In a novel development, the lots will be sold as part of an online auction, conducted by Grays Online Auction, with bidding opening today and closing next Thursday.
Mr Daniells said it was only the second time Grays had conducted an auction of this sort.
He was expecting plenty of interest in the blocks thanks, in part, to the massive reach of Grays.
"As of Monday on realestate.com.au we had 245 hits and the auction will be held on Grays Online, and they've got well over a million people that either subscribe or are on their email database,” he said.
"There are online property auctions and even online livestock auctions that have gone to this format.”
There would be three 472sq m blocks with a reserve of $20,000, as well as five 632sq m and two 754sq m blocks with a reserve of $25,000.
"We're keeping it as simple as possible, and bidding will be online in increments of $250,” Mr Daniells said.
"Young people or first time investors can purchase a block of land at a great price and as the market improves in two, three or four years, the equity or value will grow.”
He said buyers could then, for very little outlay, either build their dream home on the land using the equity, or sell up and use the money for a deposit on another property.
One of the big selling points, according to Mr Daniells, was the fact there would be little competition in coming years.
He said the cost of developing blocks in the area was now approaching $80,000, so until blocks of this sort were selling for $100,000 or more, there wouldn't be any new estates popping up and flooding the market.
Mr Daniells said rental vacancies in Chinchilla were sitting about 2 per cent, meaning owners had their pick of tenants and bargaining power on price that didn't exist just a few years ago.
And despite gloom and doom in the big cities with the property market, he said there was about double the number of contracts current in his system compared to a few years ago.
For further information on the auction, people can contact Mr Daniells on 0427468591 or email warren.daniells@ suratbasinrealestate.com.au.