We have always purchased our properties form somewhat distressed vendors.
In boom time markets it is harder to use this to your advantage as the buyers are lining up regardless. However they are always there.
One was a small 2 bed house in a Blue ribbon suburb which was yet to feel the full extent of the boom. The vendor expectations were high which pushed buyers away. We knew that a neighbouring region was going hard and it was only a matter of time before this area caught on. By the time we came across the property the wife was heavily pregnant with 3rd child and there were no buyers. They desperately wanted to be in a new larger home before the birth.
We agreed to vendor settlement terms and paid under the "price guide" which as anyone in Sydney knows is at least 10% under vendor expectations.
Capital gain of 40% in 18 months post settlement.
