Hi Richmond
Its the other half of Ric n Rosa. Quite a few years ago I was a real estate agent and have had to submit countless offers. By law I had to submit every serious offer that was put forward to me despite me thinking it was disgustingly low. This will often put you offside with the agent as well, and, as they can be one of your best sources of information/networking it is not wise to get on their wrong side.
This doesn’t mean that you dont go in low. My best lesson learnt was that you initially do go in low however it would be relative to the asking price. Prior to this I would find out why the vendor is selling. What are their needs, how long has it been on the market etc, This seemingly casual banter between you and the agent will often give you clues to the type of vendor that you have. Vendors come in different catergories as well and your offer should reflect the style of the vendor.
Dont be afraid of submitting your first offer low – you are only testing the water. Its all experience. []

I KNOW THIS AREA WELL – LIVED IN IT
I would not consider going into a deal like this in this area. Reason is that there is so many new units and rental properties in this area and also the prestige Hills corridor / only minutes away.
What happens when the market is flooded with appartments and the median rental falls?
What strategies are in place when the tenant defaults / wishes to terminate the agreement?
I agree with Regina, why would a person who can afford such a high rent not stop and do their own maths and come up with the solution that they can buy their own place and cut out the middleman?[]