Recent Buys - 10% growth in 2 months

Amidst the doom and gloom of multiple interest rates hikes, savvy buyers are snapping good deals. Good deals are still selling fast, and a fantastic deal will still sell within 3 days. And this is one such property. It was bought within 3 days of listing. Here is our story of one of our recent buys.

In the Melbourne real estate market, people say you must be crazy to sell your house over the Christmas period. Many buyers (and agents) are away on holidays, and it is pointless selling when no-one is buying. This is one-such property. It was listed the week before Christmas.

How Buyers Advocates Select The Properties We Buy

We're always monitoring the market for good deals, and this caught our attention. Due diligence showed this property is within 5 minutes of major universities (yes, 2 universities), major shopping mall, and hospital. A second set of shopping malls and hospital is a short 15 minutes away. The bonus is, it is on a large 900sqm block of land, with an outstanding potential for further manufactured growth. Research data also showed the location has already experienced 40-50% growth in 3 years, and it has another 20%+ more growth potential in the near future. It is what our client was looking for, and it ticked all boxes. We presented this property to our client and we were given the go ahead to acquire it.

We are expecting strong buying competition for this regional Victorian property, but we are not expecting the competition to be THIS strong. The inspection was organised on day 3 of the listing. 8 other groups of buyers were at the inspection. These are very healthy numbers given we just had 7 interest rates hikes in 7 months, and it is right before Christmas. We have to be diligent with our due diligence when buying in regional Victoria. Our due diligence shows this is a is A-grade investment property, and it will sell fast. Very fast. Two (2) offers vrey received before the inspection ends.

How We Made Our Offer For the Property

When our Buyers Advocates inspects a property, we include a preliminary assessment of its condition. We are trained builders and our buyers advocates have the right experience to assess the condition of the building. This one passed our walk-thru inspection, and with our green-light from a subsequent formal inspection, our client had given us the go-ahead to purchase it.

We know this is grade A investment property, and we were expecting a few other offers. So we had to be different. While our buyers advocate was driving back to Melbourne, he was thinking of an offer strategy. Something different.

We discussed a few offer strategies with the clients. Some parts of the offer strategies were unproven, but following discussions with our network of finance, legal and real estate professionals, we confirmed it can be done. Our offer price was going to be fair. We are always after the best deal for our clients, and we do not want to overpay. Thus, price is not going to be our strong selling point in this offer.

We presented our offer. The agent confirmed there are 7 other offers, and our offer price wasn't the best. There were other higher offers. But our offer was "the most attractive".

Outcome of Our Offer

2 days before Christmas, the agent called. We got it at $430k! It was a well-timed Christmas present for our investor client.

The sales agent was glad the offer was presented by a professional Buyers Advocate, as, in their own words, they "know BAs like us are not sitting around". They know we had qualified our buyers very well. We know what the property is worth, and we make sure our buyers are financially able to afford the property, before we even present the property to our investor buyers. The agents know, compared to self-represented offers, they will not be wasting time dealing with poorly qualified and unprepared buyers. Our clients will buy, and price is the only thing stopping the sales agents from closing the deal.

This property settled in Feb 2023. And we interviewed and shortlisted one of the best property manager in the area to manage the rental. It was leased within a week, due to the good location and low vacancy in the area.

Prices are still Growing for Good Properties

In just under 2 months, in March 2023, similar properties in the neighbourhood were sold for between $480k and $500k. That is more than 10% growth in just 2 months! But we are not selling yet. This client has other plans and we are working with them to tap into the potential of this property, and maximise their investment.

Help for Home Buyers and Investment Property Buyers

If you are after a similar good deal, get in touch. While we cannot guarantee every property will be as good or similar, you can be certain that we will get the property for the best price for you.

More home and investment property buying news and tips here.