Far out Friday: 900% return on property in 10 years

by NZ Adviser21 Oct 2016
Sydney property owners Andrew Hardy and Alex Bereny have made over $4 million selling a property they bought just over 10 years ago.

The doctors bought the property in the upmarket suburb of Double Bay back in 2004 for A$475,000 as a location for their practice, according to a Fairfax article.

It sold on Monday for A$4.61 million (NZ$4.9 million) after increasing nearly 900% in value since they purchased it. 
The sale comes after they decided to move to a larger medical centre nearby and the Sotheby's International auction of the 582sq m property attracted a crowd of around 50 people.

The five-bedroom house was snapped up by a private local investor after successfully outbidding four other interested parties. 

"There's a lot money around,” selling agent Sotheby's Michael Pallier said. “[In the eastern suburbs], there's a lot of inheritance and old money. Some people have so much money but they don't like to invest in shares. 

"I think it's a healthy market, and a lot of [demand] is interest rate driven."

Corelogic figures showed the auction clearance rate topped 83% in Sydney last weekend, a strong clearance which was "abnormal for this time of the year”, according to property industry experts. 

Owners of another competitive auction cashed in on their property they had held on to for 50 years. 

A local owner occupier bought the 562sq m home in Bellevue Hill, for A$4.6m, towards the top end of the price guide. 

With solid masonry construction, high ceilings and covered terraces, the home also has a swimming pool. 

The purchaser bid over the phone from Adelaide and Fairfax said the buyer was determined to buy the property even after a mid-auction phone breakdown. 

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