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Taking advantage of unit oversupply

Discussion in 'Where to Buy' started by Whitecat, 9th Sep, 2016.

  1. Whitecat

    Whitecat Well-Known Member

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    Is anybody taking advantage of the massive bad press about units and offering ridiculously low prices to pick up an absolute bargain from a worried seller.
    is there more bad press to come?
    I know units in high rises wouldn't be the favoured type of property for most investors however there's a heck of a lot of bad press out there at the moment and I would imagine it might be possible to get something really quite cheap.
    Even though rents might not go up too much for a while could still be an opportunity to find something positively geared. I think there will be plenty for sale.
    What I'm saying is it's probably a bit harder to get away with this on a house although it does happen. I just feel that perhaps in this current climate there's opportunity to drive an extremely hard deal on a unit though
     
  2. Blueskies

    Blueskies Well-Known Member

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    I've always liked the quote "the time to buy is when there is blood in the steets".

    I think it is too early to be targeting these, but a time may come when it stacks up.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Wait until the rumours of the first interest rate rises - the fair weather investors will bail en-masse.
     
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  4. ATANG

    ATANG Well-Known Member

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    But the good ones are still selling like hot cakes, especially in auctions. Those spacious, character ones are still selling 100k, 200k over reserves.
     
  5. devank

    devank Look, lets just get on with this, ok? Premium Member

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    True.
    We are Cashflow positive @4℅ IR. Break even at 4.5℅. Negative after that.
    No wonder ANZ doesn't want to lend any more money :)
     
  6. MTR

    MTR Well-Known Member Premium Member

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    I don't think this product is the same, generally speaking these are unique ie smaller blocks, character.
    Oversupply of apartments in larger complexes, they are popping up everywhere.
     
  7. Whitecat

    Whitecat Well-Known Member

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    That's what I was referring to huge body corporates usually
    but there are so many it's hard for a vendor to compete. There's no shortage of them to choose from. Although most have recently just finished completion so we're not seeing huge second hand sales just yet I think a lot of owners are holding out.
    But as others have pointed out although there's a few drops of blood in the water it hasn't turned red yet but I believe it will. Just trying to work out when the best time might be from a seller's point of view. From my conversations with non investors It's already a pretty pervasive theme amongst the general public that high rise units are a bad idea to buy in Brisbane.
     
  8. ATANG

    ATANG Well-Known Member

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    I would avoid units in places like Brisbane and Adelaide where there are weak migrations. These products require extremely strong migration in flow like Sydney and Melbourne to keep the growth. The exceptions are those small character blocks in high end suburbs with the right entry price.
     
  9. BB5

    BB5 Well-Known Member

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    Something in a block of 6 in a blue chip suburb sure. High rise - no thanks
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Quay West Sydney? The Toaster? Astor Apartments?
     
  11. BB5

    BB5 Well-Known Member

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    Sorry was being Brisbane centric. Plus I didn't think sydney has quite the oversupply as Melbourne and Brisbane
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    @BB5 - these are all blue chip high rise in Sydney cbd. Does that change your mind?
     
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  13. BB5

    BB5 Well-Known Member

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    I know nothing about Sydney.