you don't need to answer this - but obviously this is a deal that is cashflow positive with strong, long term tenants in place. how did you hear about the opportunity and, if it were advertised in the public arena, why wasn't everyone else all over it?
Hi lizzie,
No problems. I'm not a card carrying member of the secret squirrel club.
The agent sent it to me about 6 months ago when it was listed for sale. We had done business in the past. Agents always hang onto people who have completed deals with them previously...as opposed to the other sort.
I told the agent it was cr@p and wasn't interested.....no land component....not my cup of tea. What else did he have ??
Five months pass, with it being advertised in the newspaper every week. No takers. Anyone with the means could have bought this thing with no competition.
Your assumption that people would be interested and clamouring for this type of thing just does not bear out in reality. Maybe the interest is there....but people just don't know how to go about it, or do not have the means ??
The ones that do have the means usually drive a far harder bargain than myself or are looking for a nice big chunk of dirt...like we usually do.
In any case, I reckon there is a big void that needs to be filled there.
Anyways, last month my BIL sees it advertised in the newspaper again and casually says he would love to buy it, or a bit of it mores the point. All of a sudden, within two days, everyone else in the family suddenly jumps on the bandwagon and says they also want in. The Govt tenant was a big factor.
We checked that they had the means of stumping up some deeds, sorted out the %ages of ownership.....and then called the agent.
Within the week, we had inspected the property, and agreed a price with the Vendor.
No-one else was even remotely sniffing around. The agent was glad to get it off his books. I guess these types of properties are normally looked at by the Grossreal's of this world, who offer "half price, take it or leave it"......with of course 99.99% of Vendors leave it, and so there are plenty of deals for muggins like me who are prepared to pay a normal price.
So, bugger all interest overall and other than us, absolutely no takers whatsoever. On reflection, very similar to all of our other deals. In 2020, I think we will look back on this and comment that it was a good step to take.
One thing I do know for sure, the poxy GFC will once again have zero bearing on what we do.
