shubh

How did the purchase go?

Stephen M

Firstly I agree with you on the advertised price range issue.
A couple of things you need to work through and ask yourself.

1. How bad do you want this property, are you prepared to walk away if the vendor does'nt accept your price.
2. Has the vendor given you a counter offer of any sort and waht is the difference between your offer and theirs?
3. The vendor is simply trying to get as much out of the market to clear his debt and may not be a position to drop any further.

Here again I would step back away from the deal. Let me share a recent transaction with you.

My 20 year old son recently went shopping for a new car, he had a figure in mind of $34,000 on a particular car, the dealer was set at $39,000, he wanted it and simply wanted to close the deal there and than. I advised him to leave the offer on the table and walk away and not make any further contact with the dealer. He couldnt understand the reasoning until he got the call some 3 hours later, the deal was done at $34,000.

You need to clear up items 1-3, put you best and final offer forward, than walk away. Show them that you have no further interest in the deal. You can not force me to sell to you, and I can not force you to buy my offering.

I hope this helps..

Newbie.

For whats its worth, I would be looking at holding, as you stated by the time you have finished the build you will have approx  $200,000 equity. You would have to work a lot of hours to make this sort of money "TAX FREE".
Once you have settled into a regular pattern, on one income and a young family, than look at reassesing your position.
On the score of buying a large block and subdividing, my experiences over 30+ years in the real estate industry has shown that battle axe blocks tend to be slower moving and bring lower prices than your average street facing block.
Its only an opinion gained from my own and my clients experiences, I am not in your shoes.