Hi All,
I’m looking to purchase a block of units as a long-term investment and have identified one in a decent area. There are 7 units in the block and they all sit on the one land title. The agent has provided me with the individual valuations for each unit should I wish to split them to strata titles and the total value for them comes to $800K, whilst the asking price for the property is $1.2M. I may be well off the mark but a 50% markup seems very high to me considering if I were to split these to strata titles there would be an additional expense incurred also.
Am I completely off the mark in baulking at the 1.2M asking price here or am I missing something obvious?
Thanks in advance,
Tim
Hey Tim,
Something seems off to me. $800k for 7 units means an average price of $115. Does that sound right to you based on your local market knowledge?
If so, how does the vendor’s agent justify the price for the block to be higher than strata? Usually it’s the other way around 🙈
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
That doesn’t sound right – generally pre-strata’d properties are sold at a discount compared to if they were all on seperate titles.
Either they’ve got their numbers muddled, theres a misunderstanding or they have no clue what they’re doing!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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