Big profits on Roundhouse blocks
SELLERS are set to make hundreds of thousands of dollars in real estate profits in just four months after purchasing land blocks on the Roundhouse site in Ocean Shores from the Byron Shire council.
In September last year Lot 4 was listed by the Professional with a price guide of $320,000 and Lot 8 at $410,000.
In just four months these prices have risen by between 40-50%.
Lot 8 is currently on the market for $595,000.
This week Lot 4 went to auction with a price guide of $460,000- $490,000.
The property was turned in at auction on the weekend but Elders real estate agent Mark Lycos is confident the lower-end of the price will be attained.
A $140,000 price increase represents a 44% price gain.
In part the sale was hampered by "negative local sentiment" that reckons the council sold the land too cheap, he said.
"They are probably right," Mr Lycos said.
"The fact is there is very little vacant land left in Ocean Shores.
"You can build three units on this site and it has great views north and south down the coast," he said.
A breakdown in a business partnership is the reason the site is up for sale he said.
"They had plans to develop the site themselves, but this is no longer possible," he said.
Byron Shire Council's acting general manager Mark Arnold said the net proceeds from the sale of the 11 former Roundhouse lots was $3.8 million.
"The contracted sale price for each of the eleven lots reflected top market value, based upon market valuations, and was verified in a valuation report commissioned by Council," he said.
"The marketing and sale process saw all of the blocks sold and funds will be put back into essential works projects.
"A short list of potential asset renewal projects has been developed and will be reported to Council at the end of February," he said.
Ocean Shore community Association president Jan Mangleson has been a long-term opponent of the sale of the Roundhouse site, preferring it remain for community use
The current prices make it clear the Byron council didn't get the best prices they could have for the community, she said.
The initial sale was not through a public auction and was not conducted openly she said.
The sale process was operated on a 'first past the post' basis where the competition was to sign a contract quickly, rather than on price.
Sale prices were not negotiable at the September sales.