The Power of Off-Market Purchases
By Cate Bakos on 8 Oct 2013
No Comments yet, your thoughts are very welcome
Carnegie Station
Photo: Wikipedia
Just last week a special client of mine settled on a property that I sourced for him ‘off-market’.
Off-market is an expression buyer’s agents use frequently. It involves either getting access to properties that are not going to be publicly advertised for sale, or getting access to properties before sale photographs are taken and circulated online and in printed media.
It’s for this reason that I am unable to disclose the address of this property.
Well-connected buyer’s agents build relationships with good agents. They regularly alert them about new client assignments and give them feedback about their other listings. Occasionally, they will connect their sellers with good agents in their area.
In this case, I had an exciting brief from a client who lives on the Victorian border. He wanted me to source him a good growth property with strong rental prospects in Melbourne’s south east. My budget was in the mid-to-high fives ($500,000s).
My first thought was to target Carnegie, Ormond, Glen Huntly and Murrumbeena; four interesting little suburbs located on the fringe of the two train lines that merge at Caulfield – the Frankston line and Cranbourne/Pakenham line.
The Benefit of Zone One Suburbs
Importantly, these stations are still zone one stations. When we consider the number of commuters transiting from the south eastern suburbs to work by rail every day, these two lines are very busy and well serviced.
“When it comes to finding value and targeting villa units in the sub-$600K region in the south-east, buyers can’t go past the last zone one stations.”
Rail ticket prices from these stations are also dramatically cheaper than tickets from neighbouring stations outside zone one. Interestingly, a lot of home owners have recognised this and it’s just one of the many reasons these suburbs has moved at a fast pace over the last year.
The Property I Found
The unit I sourced for my client was a 3BR villa in a group of just two. It sat at the rear of the block and not only offered ‘small house’ living with a large rear yard, but also an ensuite, a lock-up garage, gas cooking and a separate laundry.
The negotiation was not tough because it was an off-market sale. I know my values and I knew that $580,000 for a sound villa unit on Coorigil Road in Carnegie was a good price.
The vendor kindly allowed us to incorporate a clause allowing us to advertise for a tenant prior to settlement, meaning my client had the added bonus of settling with a tenant in place; one paying $530pw from day one.
Sales and growth in Carnegie
Photo: Pricefinder
Why Carnegie is a Good Investment
With bus transport very close by, Carnegie Station situated within walking distance, and all that vibrant Carnegie has to offer within a short stroll, there is little wonder that the property was tenanted so quickly and at a gross rental yield of 4.75 per cent pa, despite the fact that villa units in south eastern Melbourne typically don’t yield more than 4.2 per cent gross pa.
Carnegie offers an exciting lifestyle. Residents can easily travel to nearby markets by bus or rail, including the traditional Dandenong Market and Oakleigh’s vibrant market. The suburb also provides easy transit to Melbourne’s largest shopping centre, Chadstone.
Outside Carnegie, my favourite local offering is Oakleigh’s cafe strip on Eaton Mall. This exciting mall, which has blossomed from its humble Greek beginnings, boasts some of the best European cakes and coffees in the south east…. but I will save an Oakleigh wrap for another article!
When it comes to finding value and targeting villa units in the sub-$600K region in the south-east, buyers can’t go past the last zone one stations. They represent great value, a fantastic and gentrifying area and a convenient commute.
And of course, if buyers greet agents with enthusiasm and share their criteria lists, they too may get into off-market opportunities.
A friendly smile and a bit of a chat at an open for inspection can go a long way, especially when you consider the negativity that agents have to face from the public at times.
Be the buyer that good agents remember – they may think of you when that special listing comes up!
For more information about Carnegie, read our suburb profile here
Points of Interest in Carnegie, Postcode 3163
Carnegie Primary School
Rosstown Hotel
Glen Eira City Council
