Given the number of PM's I've received over the last 48 hours, I've decided to carry on with describing this property acquisition journey as it unfolds.
We got "the call".....3 or 4 calls in fact, the hunt is on....and I can smell blood.
The wife and I are up against two other superannuation funds, one based in Sydney and one based in Melbourne, although I expect the Melbourne based one may also be a tenant in the building itself.
Both of the super funds slapped down a very large lump of unconditional cash on the Vendor's table. They are also trying to get it on the cheap, with gross yields in the low 11's. We pitched our bid at very high 10's....with the added proviso of a 20 day finance clause, which, as we expected, went down like a lead balloon.
We can only surmise we are slightly higher than the other two super funds, or they would have screwed up our offer and chucked it in the bin already.
On Friday afternoon there was a tense 3 or 4 hour period where, over the course of 3 or 4 phone calls, I tried desparately to wrap up the deal by getting the Vendor to write down and sign, within the hour, on their corporate letterhead, that they accept my bid for the property....and in exchange as a sweetener I'll add a further 100K to the purchase price.
Without sounding like a complete knob, I absolutely love that pressure cooker environment of closing a deal and convincing a Vendor to accept the offer. The last success we had was well over 2 years now, and I didn't realise how much I relished the thrill of the chase.
The Vendor was teetering on the edge, but Friday afternoon-itis got the better of him, and he backed away, saying he'd put it to the Board over the weekend, make a decision over the weekend and inform the Buyers on Monday morning.
This property is worth more than our entire portfolio, so a huge leap forward if we do get it. Might see how it pans out for a year or two and then try this LOE lark on for size. We'll need appreciation rates of 0.2% p.a. to live off comfortably......and even the wife agrees that's conservative enough to guarantee we'll achieve it.
Needless to say we are having a tense weekend playing the waaaaaiiiiiittttting game. As big Kev in Qld would say....I'm excited !!!!!