Thanks. Only you understand what I am asking.
How is your property hunting?
I just helped a Malaysian couple bought a hidden gem.
385sqm rear block with a survey strata 3-bedroom 1990s house with single carport 9km from CBD.
$395k. But very well maintained. The median for similar houses nearby is $450k.
The front house is 1960s style, not attractive. But drive to the rear block and it opens up to a nice front courtyard and the house is built like an easy maintain cottage.
The kitchen is of a good size and so are all the bedrooms.
The back garden is large and has a potential for a large outdoor "room" complete with enclosed patio. Put in lightings, fountain & landscaping and it will look very luxurious, sitting in the patio sofa looking out to the garden.
The couple don't mind the eye-sore front building which is owned by pensioners. They are sick of renting.
The R/E agent is a East European lady. Talked too much.
There are 8 offers put in, over 3 days, my worker's offer is at least $10k less than the highest bid.
But I spoke with the agent and learnt a few things about the other buyers.
Can tell that the agent is concerned over the buyers who put in the highest bid. The agent drop the word "Over" - meaning over the price range being considered by the seller. And they are the only other couple left looking at the house when I was there. They look like the typical financially naive angmos, from the iPhones they carry to the car they drive. Probably already deep in debt waiting for bailout type.
Straight away, I made the job easy for her.
I told the couple to highlight their financial position when putting in an offer contract. We are the last to submit the offer. The Malaysian lady agreed with my view that we do not need to "up" the offer. Just put in one that they have previously agreed.
True enough, less than 3 hours after the agent presents all the offers, the seller accept the Malaysians' offer (3rd highest) based on the fact that they are putting in the highest deposit. Knowing that the bank will approve the smaller loan.
Lesson learnt for me:
How times change. If a buyer do not have good sized deposit, it does not matter that he/she put in the highest offer.
*** Update ***
At the rate the Perth property prices are falling (7% in Dec) I would have thought that sellers will drop the prices, but it is not to be.
I miscalculated once.
Malaysians and I were looking at another property which I thought will not attract rich migrants, so I suggest $420k. (Seller sticks to boom price $450k)
There are not many people at the home-open which suggest that the price is too high or the property is too small.
But I miscalculated, a migrant from Israel end up getting the property. Good luck to him. He overpaid. on hindsight, I personally will not even caugh out $420k for investment because my breakeven is $380k.
