Romantic investors looking for a spectacular gift for their loved one could be in luck this Valentine’s Day.
That’s when New South Wales’ first auction of a property starting with a reserve of just $1 is set to take place.
The owner of the large Blacktown
house decided to do something different and break through the barrier of “textbook auctions”.
Neil Tyagi said he wants the auction of his home to have a lively, exciting atmosphere that everyone- not just the buyers - will enjoy and remember.
“Buying a property should be fun. I wanted to do something different, and I’ve never heard of a property setting a $1 reserve.”
Starr Partners Fairfield director Raj Bhandari, who is responsible for the sale, said there is expected to be high demand for the four bedroom house which sits on a flat 576sqm block.
The property would be well-suited as either a family home or an investment property, so he is confident there will be no shortage of buyers on the day.
“Bidding on the day is likely to start out low and pick up quickly. We are confident with our strategies and know that there will be plenty of competition on the day to help the vendor achieve an optimum result.”
But, interesting and quirky as it is, could the tactic actually be a clever way of getting around the under quoting practices employed by some selling agents?
Underquoting of potential sale prices in auction price guides has long been a problem in New South Wales, Victoria and Queensland.
In Queensland, legislation banning price guides was introduced last year but, to date, no such measures have been adopted in New South Wales or Victoria.
However, NSW Fair Trading launched an investigation into the practice of underquoting in November last year.
Fair Trading Minister Matthew Mason-Cox said underquoting is a serious offence and will not be tolerated by NSW Fair Trading.
“Not only does it seriously compromise the integrity of the real estate market, it puts enormous financial stress on innocent home buyers.”
Agents who engage in underquoting face a maximum penalty of $22,000 or, depending on the severity of the breaches, an agency could have its licence cancelled.
NSW Fair Trading is said to be closing in on some agents known for underquoting.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out