By: Andrew Date
Could I help you save $70,000-$90,000? Back
Could I help you save $70,000-$90,000 on your next purchase?
Matt and Alana received my number from a mutual friend. They contacted me and we arranged a time to meet and discuss their situation. Alana works at the Alfred Hospital and often works long hours, while Matt is also working long hours at Moorabbin Cabinets, a large family owned and operated cabinet making company.
We discussed what they were looking for and how my Insider knowledge could help them make a better decision and achieve a better outcome when buying property. They are seeking a change in lifestyle and have decided that a move from their current inner city apartment, to a more traditional suburban home on a decent size block is what they were searching for.
Like many first homebuyers Alana and Matt have a budget, as we know your budget determines the suburb you can afford to purchase in. It also has a bearing on the type of property you purchase. We narrowed their search down to a couple of bayside suburbs in their price point, Seaford and Frankston South.
The main criteria is simple, we are looking for a house we can add value through either a renovation or extension, we would like it be as close to the beach as possible and in the best location for our budget.
Seaford is a bayside suburb that has seen significant growth of 8.6% per year for the last 3 years. The Seaford village has transformed over the last 3 years with the recent addition of a Spanish Bar that has great food and live music on a Thursday night. The village offers many cafes, a sports bar and bistro, beautiful white sandy beaches and a regular monthly farmers market. There is no surprise to me why this bayside suburb is finally seeing strong capital growth.
So far Industry insider has inspected 8 properties on their behalf. Two have been off market opportunities where the majority of the market does not normally get to inspect. Off market number 1 was an original 1960’s blonde brick property, positioned on over 691 sqm, in a quiet tree lined street close to the beach. I sourced from a local agent. At first Matt and Alana didn’t like it. But after multiple inspections of other properties, time to think and the lack of quality homes for them to choose from, they realised that this was actually a great opportunity for them.
We did not place an offer in writing on off market number 1, because after completing our due diligence and market research we felt like the vendor was asking an unrealistic price that was just out of their budget.
Off market number 2 was positioned on a corner block only 550 meters too the beach. A weatherboard property in its original condition with the exception of a second sizeable living area, which was part of an older renovation in the 1990’s. It was still occupied by its original owner as a few of the homes in this area are.
We walked through and inspected the home together. As all buyers do, Alana and Matt had specific criteria. The way this home was positioned on the block didn’t allow for an extension and I agreed it wasn’t an ideal footprint. The agent who showed us through the property informed us that they were open to offers around the $520,000-$540,000 mark. Certainly within their budget but it just didn’t feel right for them.
That same property sold at Auction for $610,000 with 6 different bidders.
We were in the door before any other buyers and could made an offer between $520,000-$540,000. If this was suitable for Alana and Matt then there is a potential opportunity saving of $70,000-$90,000 all of this in a really buoyant market.
The search continues for Alana and Matt, I have faith we will find the right property for them, it’s just a matter of time.
Andrew Date – Industry Insider, Property Advocates.