low ball offers ? & What outer ring Perth suburbs

I've been trying to search for some topics on SS about low ball offers. I'm thinking as a strategy I might put down a bunch of low ball offers and create some instant equity that way. I may possibly also do a reno as well to create further equity.

There are always people needing to sell ASAP for a variety of reasons and some will have to take a loss.

Can someone direct me please to some links somewhere or tell me your stories.

I also need the property to be close to neutral as I can get it and in a decent area for CG. This rules out inner ring Perth as its just too NG there.

I guess if I follow the low ball offer strategy I would have to be very clued up on the suburbs I'm wanting to invest in so I know I'm getting a good deal. I would also need to know if the IP is in a good neighbourhood and the street is desirable too.

What outer ring suburbs in Perth would you invest in ? if you were investing in Perth at present?


thanks
 
I take it what you mean by "low ball offers" is to try and buy below market value. It can be a good strategy and its part of my criteria when I buy.

I guess if I follow the low ball offer strategy I would have to be very clued up on the suburbs I'm wanting to invest in so I know I'm getting a good deal. I would also need to know if the IP is in a good neighbourhood and the street is desirable too.

You are right, you need to be able to quickly and accurately value a property to be confident that what you are buying is actually below value.
 
The sub $450k market was exceedingly hot last year and it would have been near on impossible to find a good buy.
Things slowed down a little towards the end of the year but many listings were still selling higher than listed price in that price bracket.
It can be done but you'd need to be on the ball with instant due diligence.

What is your budget again?

If you can go west of Wanneroo road I would.
 
WM is correct. I believe there is still some steam in this market, however, its now not FHB that are the major players in the market it is now the investors.

Low balling is a strategy I would use when the market is flat, there is an oversupply and many distressed sellers.

At the moment I would identify where the market is really hot, jump in, do nothing and create equity within 6 months. Plenty of areas still rising within 14 km from Perth.

I would look very closely at Beechboro, there are very few listings, great demand, recipe for growth, anything sub $420K, is flying out the door. Now if you are lucky enough to secure a property in this price range that has been earmarked for rezoning you will be laughing as I believe from my research Beechboro rezoning will be happening a lot sooner than Girrawheen/Koondoola.

Other areas to watch are Alexander Heights, Marangaroo, relatively close to the city and I believe some pockets also will be rezoned.

If you want growth you need to find something that is unique and everyone wants.

The key is to network with a few agents in the area and be ready to pull the trigger when something suitable hits the market, try to be ahead of the crowd. If you can make a cash offer that would help, alternatively have pre-approval.


MTR:)
 
Agents in Perth will probably ignore you as the market is coasting along at a steady state.

This will only work in a very bad market.....

I've been trying to search for some topics on SS about low ball offers. I'm thinking as a strategy I might put down a bunch of low ball offers and create some instant equity that way. I may possibly also do a reno as well to create further equity.

There are always people needing to sell ASAP for a variety of reasons and some will have to take a loss.

Can someone direct me please to some links somewhere or tell me your stories.

I also need the property to be close to neutral as I can get it and in a decent area for CG. This rules out inner ring Perth as its just too NG there.

I guess if I follow the low ball offer strategy I would have to be very clued up on the suburbs I'm wanting to invest in so I know I'm getting a good deal. I would also need to know if the IP is in a good neighbourhood and the street is desirable too.

What outer ring suburbs in Perth would you invest in ? if you were investing in Perth at present?


thanks
 
Hi Alex

A low ball offer offer with instant equity = means you have to find a problem property and fix that problem..


Problem might be sellers is incredibly motivated to sell and will accept well below market value for a cash or quick settlement, but in this Perth market that is highly unlikely unless you have the "Inside running" by having networked agents in the area as MTR suggested.

Otherwise fixable profitable problems are renovations and sub division.

Happy hunting
 
Looks like a nice property. Much more potential then a 1Bedder IMO

Very much in demand due to the location. Quoting $450,000, however you only need 2 bidders to push price up. As this is a unique location and opportunity to perhaps spend $30-40K to make $80K, I am sure it will be pretty hot and go for much higher.

The key is finding something that is hot and getting in before the competition does so you don't pay too much.

In Melb everything goes to auction, its a pain as there is lots of competition for quality stock. At least in Perth we have not really jumped on this yet, but I suspect this will change in the near future.

MTR:)
 

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68 hardy looks like it has some very handy potential

http://www.bassendean.wa.gov.au/7_info_feedback/pdfs/Ashfield_Precinct_Plan-Adopted_Jan_2010.pdf

In short proposed r40 when ever the scheme gets amended, so the 635 sqm block will potentially be a two lot land subdivision or under multiple dwellings maybe 5 or 6 apartments


Thanks
Yes, I thought very interesting too, however something better has come along, otherwise I would have gone to the auction and jumping in myself.

I think purely on location its an absolute winner, and just tidy the house up waiting for the zoning to come through, growth a given in my opinion.

Cheers
MTR
 
Very much in demand due to the location. Quoting $450,000, however you only need 2 bidders to push price up. As this is a unique location and opportunity to perhaps spend $30-40K to make $80K, I am sure it will be pretty hot and go for much higher.

The key is finding something that is hot and getting in before the competition does so you don't pay too much.

In Melb everything goes to auction, its a pain as there is lots of competition for quality stock. At least in Perth we have not really jumped on this yet, but I suspect this will change in the near future.

MTR:)

Agreed need to get in before everyone does. My most recent purchase came on market Sunday I offered unconditional Tuesday and had signed contract Wednesday. I have no doubt if the property was to go to auction at the time that it would of gone for 5-10% more.
 
Agreed need to get in before everyone does. My most recent purchase came on market Sunday I offered unconditional Tuesday and had signed contract Wednesday. I have no doubt if the property was to go to auction at the time that it would of gone for 5-10% more.

Fantastic work, made money on day one:)
 
68 hardy looks like it has some very handy potential

http://www.bassendean.wa.gov.au/7_info_feedback/pdfs/Ashfield_Precinct_Plan-Adopted_Jan_2010.pdf

In short proposed r40 when ever the scheme gets amended, so the 635 sqm block will potentially be a two lot land subdivision or under multiple dwellings maybe 5 or 6 apartments

Thanks
Yes, I thought very interesting too, however something better has come along, otherwise I would have gone to the auction and jumping in myself.

I think purely on location its an absolute winner, and just tidy the house up waiting for the zoning to come through, growth a given in my opinion.

Cheers
MTR
I did a drive-by yesterday. There's a few quality houses surrounding it where they have knocked down and rebuilt. Dtraeger - I think it will sell between $450,000 - $500,000. I think it could do with a cheap tidy up - paint, curtains. Rent for a few years then knock down and build two houses. Lots of quality building currently going on further up on Hardy Road at Bassendean. In the other direction, quality products being built in Bayswater. With Ashfield in the middle I think it's ready for revuvination.
 
Fantastic work, made money on day one:)

Yes very happy agent had other people ringing him that night offering above my offer, at that stage they had only verbally accepted my offer - no contracts had been signed.

Luckly it was a old skool agent that is known in the area that was true to his word and contract signed the next day.

He told me two weeks later was still receiving calls, so pretty happy this this one. (details to come in new thread next week)
 
Damn, forgot about auction, did anyone make it?

I made it as i had been planning to go for a while.

But i was either late or they started early so dont know the outcome lol


Theres another one at 104 i think. Triplex block r25. Which is the quiet end of hardy road. But classed as bayswater so will be at a premium

Cheers
 
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