How to avoid competing with owner occupiers?

Discussion in 'Investment Strategy' started by Creamy, 5th Nov, 2016.

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  1. Creamy

    Creamy Well-Known Member

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    I don't want to buy an IP that needs a lot of work (due to lack of renovation skills, time and desire).
    I don't think my criteria is that difficult to meet either:
    • No flooding
    • Not at the end of a T intersection
    • No big slopes
    • At or above street level
    • Not too close to train line or main road.
    • Able to rent it out as is.
    In the suburbs in Brisbane that I'm looking in, this means I'm competing with lots of owner occupiers.

    Any tips on how to avoid owner occupier competition? Is it simply a matter of looking in a different area? Most of the sellers don't want to accept offers until after the first open so I can't get in early to snag a deal.
     
  2. jins13

    jins13 Well-Known Member

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    Possibly build up a relationship with the local real estate agent. I know for my last two deals was through the local real estate agent prior to it being listed. To be fair one of them did require alot of reno work to be done but in saying that I am thinking it's getting hard to even get reno projects because everyone knows that there is money to be made for the right property with a good base.
     
  3. MTR

    MTR Well-Known Member

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    Cash offers
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Look for suburbs with higher levels of investors rather than owner occupiers.
     
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    Most of the agents I've dealt with avoid first home buyers as they're rarely get their finances together and dither on decisions.

    So, be the opposite of that. Have your gear in order and be decisive. Know what you're looking for, don't mess people about, get deals done. Agents come back to you with more listings if you're good to deal with.
     
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  6. Chabs

    Chabs Well-Known Member

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    Fast deposits, If you are capable of dropping a 100k deposit cheque (or whatever the number) on the spot, you tend to grease the wheels a bit and deals are done sooner. Owner occupiers rarely can do this in areas such as the suburbs of Brisbane.

    Its how the big boys do it.. Its how they lock down the best deals before anyone else can.

    More relevant for commercial (where speed of sale can be super important) but also important for resi.
     
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  7. ashish1137

    ashish1137 Well-Known Member

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    Change a couple.of criterias if u can source the properties at right price.
     
  8. Do Androids Dream

    Do Androids Dream Well-Known Member

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    There's some good tips here, like building up relationships with real estate agents and offering a sweeter deal to the vendor (shorter settlement period, higher deposit, etc.).

    But in reality, you want what almost every Owner Occupier/Investor wants and therefore, you'll always be competing with someone else! Roll with it...

    Personally, I've noticed myself becoming more selective in which properties to pursue. For example, I saw a nice little new listing but decided not to bother, as it just had OO written all over it and undoubtedly it'd go quite high because its brand new, with a study, all the right fixtures, etc.

    Not to mention, it also had a higher number of 'visits' on the listing than other properties...
     
  9. gman65

    gman65 Well-Known Member

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    Wait until the start of the new year ;)
     
  10. lightbulbmoment

    lightbulbmoment Well-Known Member

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    Id prefer to compete with an oo than developer.