Bargain property in Central Geelong? Sale price dips after one year

There are certainly opportunities in the current 2019 market to pay less than the last price.

But is there really such a thing as buying a bargain when it comes to property? And where are they?

This series of articles looks are specific examples of sale price or asking price falling. 

We take a look at where and if possible why this is happening.  

We came across this property for consideration.

A year on from a peak market purchase of a central Geelong property, vendors made a $57,000 loss.

Situated at 46 Bourke Crescent, Geelong, the home previously sold for $780,000 in June 2018.

It sold at auction last month for $722,500.

Four bidders competed for the three-bedroom Victorian-era house 

It passed in for $715,000 and sold immediately afterwards during negotiations with a local buyer.

McGrath, Geelong agent David Cortous said the result was a snapshot of how some segments of the market had changed over the past year, although the trend was not reflected across the board.

“If you sold in winter last year that was the top of the Geelong market,” Mr Cortous said.

“Things have probably settled back from the highs of last winter," he told realestate.com.au.

Property Observer advises it is up to you to determine if the offering is a truly beneficial bargain.

Remember buying at the bottom of the cycle is fraught – as you can't really precisely pick the bottom nor know just how long until you see some price growth.

Be aware you could be buying a poor quality property in an area with ongoing issues of oversupply of stock.

The oversupply could be also putting downward pressure on rents.

Other price declines could be because the vendor needs a quick sale or paid way over the top on its last purchase chase.

Property Observer suggests property purchasing really does need to be a very well considered proposition with a long term mindset.