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!
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!