The price is the price except – when no-one knows it!

Today Grant Hoey continues his series on Apartments and investing in general.

Auctions this week were as predicted attended by a growing number of owner occupiers and investors alike. The majority of apartments were sold under the hammer with spirited multi bidders. Remembering the buyers must be in a cash unconditional position, buyers have had to complete their due diligence and have finance in place – because at the fall of the hammer you own the property.

Nearly all apartments have been let know with the majority of students returned for the first semester of studies. Rents have increased and so has demand, with the demand starting a little later than last year; however the intensity was apparent early on into the seasonal increase in demand, with the majority of vacant apartments being rented very quickly.

There has been a lot larger appetite for new tenants signing up for fixed term leases, rather than periodic which helps the investor enormously – because there is more certainty for the landlord in regard to consistent rent for a longer period.

City real estate agents are run off their feet with open homes due to the large number of listings and the enquiries these listings are generating.

Marketing apartments can be a challenge at the best of times. The first point is that in most cases an apartment with a price will generate more enquiries. This is because a buyer knows immediately whether the apartment is within their budget.

Too many apartments (and in fact properties in general) are advertised with price by negotiation (PBN) which is hugely frustrating for a buyer and from my experience reduces dramatically the level of enquiry, to the point where the only question to an agent is, how much does your vendor want !

At the end of the day the vendor wants to sell their apartment because that is why they are paying good money to market their apartment, or does the vendor just like spending money on advertising for the fun of it?

At some stage it will come down to a dollar value, so why not stop wasting time and market the apartment with a price! Worst case scenario, if a marketing campaign is going down this track, then put a price range on it, to at least give a potential buyer some idea where the asking price might be, e.g. offers over $150,000…

A catching headline helps immensely and also very good quality photographs are essential, do not cut corners here; pay a professional to undertake this task! And then have a well cleaned and professionally staged product for the photographer to work with. Yes and again – do not cut corners – get the apartment professionally staged by an expert; both these points are essential and are money well spent!

Next week more auctions and more opportunities to buy those high yielding cashflow positive apartments in the Central City. Why not diversify your portfolio a little and future proof it through adding a couple of City Apartments – which will pay you well with cashflow for many many years to come.

In the meantime — Good Hunting

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