Too good to be true?

Doesn't sound too good to be true to me. Sounds good but not alarming. Why is it not selling?

Have you compared it to others in the same area? Just check that it's not a company title or a serviced apartment.

Where is it located?  That will make the difference to me. If it's regional and you don't experience CG then it's not a good investment (to me). However if it's well located and the price comparison stacks up, go for it.

If you care to give more info you may get better responses.

I don't know values in your part of the world but a 6% yield really isn't bad for most people.  Most of our stuff does 10% to 20% but it's a different program with shared housing.  Most smaller investors are best served by buying something in their immediate are so they can keep an eye on it.  One of my friends did well for 30 some years just buying properties that were on his way to & from home on his commute to work.  He'd notice when a light was out and pop by to take a look so his tenants paid better and performed better because they knew he was about.  Even if you have a professional manager involved be cognizant of the fees involved and cautious of churning….prop companies in the states are known for dropping a tenant in and not worrying about how long they will be there because they take 1st month rent on any replacements.  Look for some sort of performance warranty.  We guaranty our renters for 6 months….if they don't perform, we replace them at no cost.  Again, our model is pretty unique.

If you're really interested in the unit, spring for some money on a home inspection.  Not sure if they do due diligence over there but here, usually you write a contract with a kick-out clause for inspection issues.  You usually get 5 to 7 days to have an inspection done at your cost but this gives an idea of the property's true condition.  Just make sure you find a qualified inspection from some of your fellow investors.  Try not to us an inspector recommended by the listing agent as they tend to favor inspectors who go light on the property review…remember, the listing agent wants a sale and a commission check!  LUCK!

If you make an offer have a "subject to building inspection" condition inserted.

Before you even make an offer ask for a copy of the last two years minutes of the body corporate AGM plus full financials. Get someone to help you read them if not confident in interpreting the figures. A decent broker should be able to assist you in this regard.  

This will reveal if any major repairs such as concrete cancer, roof replacement or a non existent sinking fund is evident and may shed light on the reason it has been on the market for an extended period. Also ask the the REA why it has been on the market for so long making sure you BS radar is turned up to FULL.