At a time of low-supply and market sluggishness, we’re buying more and more properties off-market. An off-market sale is one that happens under-the-radar without any public advertising.
Off-market properties tend to have motivated vendors who are prepared to accept a lower price because they want a quick, discreet transaction with no marketing fees, a speedy settlement, and none of the hassle of property inspections, including strangers traipsing through. This also presents a win for investors, who in turn get a reduced-priced property that’s not subject to the frenzy of market competition, especially at this time of low supply.
Buying a property before it hits the market has the added benefit of lowered associated costs for both parties. The off-market properties we source and buy are usually already tenanted, giving the investor yield-certainty and immediate returns, and avoiding the costs of finding tenants.
Some vendors who wish to sell between Christmas and mid-February recognise that a full-fledged marketing campaign is not the right strategy for this season, and our observation is that behind-the-scenes opportunities tend to peak during this time.
Until next time.