Hi all,
I am keen on a property in a development of 30 units, construction yet to commence.There is the asking price. Have you found any ways to negotiate down on the asking price, or are they usually 'take it or leave it'?
Thanks for any advice on this.
Mate tread carefully, property developers are not stupid.
Everything is priced on a square meter rate and you need to make sure you are paying the right money for the project and that you can make a minimum of 20% on the back end once all sold off.
Too many times have we seen people go in and purchase a project way over the real price and do there ass in on it.
Agree with AIF. If you try and talk them down too far they lose their margin and given its off the plan, the presales need to show a 20% minimum profit otherwise the bank won't fund the development. Asking price is usually there for a reason and you'll find its usually cheaper than a 'retail' market price..
Thanks gents.
Got me thinking on building rates. Found this site: http://www.bmtqs.com.au/ConstructionCostTable.aspx
m2 x rate, plus land costs, plus 10% marketing and other costs…. plus the margin. Yes, I’d be paying too much.
Cheers.Good find. I have used BMT on numerous occasions before they are usually spot on!
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