Should I place an offer or wait (Stage 4 Restriction)

Hi all,

Would love your advice, was planning on placing an offer (610k) for a townhouse this week. However due to stage 4 I am starting to reconsider as the property market 'might' drop.

A few things are working in my favor which is there still need 3 identical units that are in the block that is still for sale.

Should I still place the offer at 610k? Reduce the offer to outside the range or wait until who knows.

Thanks!

All advice is welcomed!

 

brand new? How big is the development?

might not be a good property to buy even without covid.

 

Four townhouses. - First has been sold.
Developing will complete in Feb/March. Did site tour and examined and checked other townhouses and houses that the builder has been made. They look good.

Townhouses are two bedrooms two bathsroom + Car space with internal of 100 sqm
5 minutes away from the train station. Looking at the comparable the offer is fair.
Using it as a PPOR and then IP in a few years time.

 

Watch and wait..... if the others dont sell the price may drop
Developers cant hold on to stock for too long

 

Thanks for advice MTR.

Should I wait until Stage 4 restriction ends? Or still put in an offer at below the range?

 

I dont have a crystal ball but By all indications Melb is looking at the barrel of a gun. Economy is screwed, you have time on your side

If you have a good safe job you are in box seat to pick up from distressed sellers. Sit tight no need to rush in

 

Thanks MTR. I will hold and wait!

 

Its just my opinion

 

I think since there is 3 townhouses that are identical I think there is no harm in waiting!

 

Think. Otp and 3 out of 4 are unsold? Worry about valuation, but also worry about builders finances.

 

What is the asking price ?
How complete is the build currently ?

You could still reduce your offer much further, they can only say no, then should another sell you can increase your offer.

Then they know you are a serious buyer, and when they get desperate they may reach out and counter offer ........

@MTR raises some good points, you should consider as many variables as possible

 

Great questions

Framing has been completed for the bottom level.

Asking price is 610-640k

I was thinking of offering 605k but I'm not too sure yet.

 

Think min 10% discount off asking price straight up !

@Trainee point about builders liquidity are also very valid

Often a builder might "sell" one to themselves/brother-wife/trust (often the best unit) at a discount to show that this development is desired and they have some funds already.

It is your choice, no one can make it for you, and you are best positioned and informed to make the decision as you have been there.

Have you obtained a copy of the contract-sec 32 and had a solicitor review it ?
Ensure that all the finishes are listed, type/brand/specifications of tiles, carpets, doors & handles, heating, insulation, appliances are all listed

I would pick the best unit, from a sunlight and access view (furthest away from corner, gets most sun/nth facing, parking) then offer $570,000 with only a 5% deposit

@Scott No Mates might have more to throw in

 

Depending upon how long they have been on the market, I'd probably tread water for a little while longer then go in hard as per @Stoffo.

 

@Stoffo @Scott No Mates

Wow, 10% off the asking price?!

Its a off the plan townhouse, so not exactly sure how long it has been listed for.

 

Stage 4 may bring a halt to construction (has building commenced?) which will increase the time until the townhouse is ready.

I would not be signing anything at the moment for something not completed.

 

Only my opinion and this is in southside inner Brisbane as I have been looking for one of the daughters for 2 months ..Found one last week and was just about to go to contract,only problem is the one Agent I have been working with sent this week listings and there were 2 new listings 40k below the one we intended to make a offer ..had a talk this morning to our daughter and said I make a mistake many years when I told you to buy CBA at 94bucks and I think with what's happening very quickly it's better to wait till the new year..imho.

 

Email the agent and ask when they were listed, and ask to be notified of similar listings they may get in the area/surrounding suburbs.

Then email every day, ask various different small questions like can we choose the interior color (then ask how much extra that will be), same with carpet types and color and almost everything else you can think of...

Make friends with the agent, they may share more than they usually might

Yes, min 10% less than asking price.
If you want to really lowball, start a 20% less

 

Construction has commenced. You do bring up a good point in regards to the restrictions. From what I can see construction is allowable.

The only reason I would be interested in signing prior to completion is to take advantage of the home builder grant (25k).

I discussed with agent in regards to modification and the builder is happy to modify anything we want (i.e timber flooring through etc etc).

I don't think they 576k as another buyer wanted it for 600k but was given a no by the vendor. But who knows?

 

Although its your opinion it is definitely valued. This is why I'm also hesitated in that the townhouses could be listed lower once completed! .