Should I buy again in the same small complex?

Hi guys,

About a year ago I bought a townhouse in a small, low-maintainence block of 6. I really liked it because I bought below market value in an area that, after much due diligence at the time, has proven to be a winner for me (in the context of my personal strategy). Its great because the land size for the small block is really quite large, so the land appreciation, divided by 6 (so, per-unit) is substantial.

I don't live anywhere near the area but I know it very well from numerous trips and walking/cafe-ing the suburb a lot over the last year.

Anyway, very recently another townhouse in this block has just popped on for sale. I know it well and am in talks with the agent. Critically, I've not yet disclosed that I own another in the block.

Problem is, it is overpriced and well above what I know it to be worth paying for. This wouldn't be a problem if the vendor was normal and open to negotiation, but unfortunately they are not...

...I know the owner of this unit pretty well, from strata meetings and correspondence over the year and engagement I've had with them. And let's just say that they are difficult, so when the agent tells me the owner refuses to accept anything below asking price, and is in no rush to sell, and will wait 6 months if she needs to, to get the price she wants; I believe her.

My question for SS'ers is this: what would you do, would you buy this one if in my shoes, or pass it up?

Do the obvious pro's of owning two out of six (more strata votes/control; future possibility to greater control the supply/demand for this block later on, etc.); outweigh the con of potentially having to pay a bit more than I would normally, just to secure it?

Am I just being silly/transfixed by the power play of owning a bigger voice in this block? Or should I consider this a super-rare opportunity to buy in?

Any constructive ideas and criticisms are most welcomed! :)
Since there is no other tangible benefit from owning two units in the block vs one (apart from the ability to inspect two properties without travelling more than a few steps between them), I would say you should take a step back and look at this new purchase at arm's length, i.e. purely on the numbers.

Unless, of course, your strategy is to buy the remaining four units over the next xx years and reap the (somewhat doubtful) benefits of complete control. :)

If the purchase represents value then consider it - don't let sentiment cloud your judgement.

The purchase would improve your liability for strata costs but also gives you more voting power on the bc.
Go for it! I was in the same situation and didn't take the opportunity. But don't overpay. If someone else overpays this time, you might be able to pick it up a few years down the track.
You already know the building and have to deal with the other residents and owners at strata meetings so better to get it all over and done with in one hit. Also, having that little bit of extra 'power' is nice.
I wouldn't like to over pay in this situation, if it meant owning the whole block then I could justify it. When you indicate that it is overpriced, is it 2%, 5% or more overpriced? Are you sure that you are being commercial in your assessment? In other words would you pay this price if you didn't already know the B/C intimately? It may seem like a safe bet and maybe it is but I don't think the transaction deserves much of a premium but only you can make this judgement. You will have concentration risk IMO without the benefit of owning the whole block.
Don't overpay . Make the offer you think is valid and when they reject it , walk away ...

You could always get someone to make lower offers on your behalf ....

Reverse conditioning :D