Are people crazy in buying properties?

Last Saturday (09/01/2010) I went to inspect a 1920’s brick property in West Ryde, Sydney. I arrived about 10 minutes earlier. To my surprise, there were already 5 couples there. Anyway, lots of work need to be done before you can move in.

The agent told me the target price is high 700K which I thought it was a bit high. By the time I left, there was a long queue outside of the house. Though I had a feeling that it was going to be sold prior to auction, I never thought how crazy people are!

Today (15/01/2010), I checked on domain.com.au again. It is jaw-dropping: The property was already sold at a price of $820K! Here is a photo of that property.

http://www.investmentpropertycalculator.com.au/blog/wp-content/uploads/2010/01/west-ryde.jpg

Can you guys see my point here?

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