By Jarrod McCabe and Brenton Potter
Patience is one of the most critical – and often underestimated – qualities in property investment. It’s about more than just waiting; it’s the discipline to do your research, select the right asset, and walk away when the numbers don’t stack up.
In this article, we take you inside a real client case study from Wakelin Property Advisory, showing how a patient, methodical approach across market research, due diligence, and negotiation delivers the best results for property investors.
The client’s journey: From uncertainty to focus
Our client, an interstate investor from Sydney, spent six months weighing up where and what to buy. They considered not just Melbourne, but also other capitals, carefully assessing what their budget – just north of $2 million – could achieve in each city.
Unfamiliar with Melbourne’s market, the client’s first step was education: understanding which areas offered value, what property types made sense, and why certain suburbs – Stonnington, Prahran, Bayside, Carlton, Fitzroy – were on our radar.
The client engaged Wakelin for their expertise, knowing that a strategic approach would be key at this price point, where the risk of overpaying for improvements or location is high.
Market coverage and asset selection: Casting a wide net
Once on board, the Wakelin team took a collaborative, team-based approach to the search. We focused on single-fronted cottages and terraces – assets with enduring appeal and strong land components – across the preferred inner Melbourne suburbs.
Both on-market and off-market opportunities were explored, with our team leveraging their agent networks and ensuring multiple advisors inspected each property to avoid missing any red flags.
This process was not about finding ‘the first property that looked good.’ Many properties were 80% right but compromised by factors like location, surrounding development, or floor plan.
That meant walking away from anything that didn’t meet all the criteria.
The off-market opportunity: Knowing when to walk away
The breakthrough came with an off-market opportunity in Prahran: a freestanding, three-bedroom house on a generous 280 sqm block. The property featured a single-level floor plan, a central bathroom, and a renovation about 10–15 years old – perfectly rentable, if not brand new.
For an investor, this presented a balance between immediate rental income and future value-add potential.
Initial discussions with the agent suggested a price range of $2.1–$2.2 million. As a team we conducted a thorough inspection and expressed interest, pending a contract review and building inspection. However, the agent soon revised the price upwards to $2.3–$2.4 million.
Recognising that the property no longer represented fair value, we advised the client to step back.
This was a pivotal moment: rather than getting swept up in the moment or feeling pressured, they chose to wait, confident that patience would yield a better result.
Due diligence and re-engagement: Preparation pays off
About a month later, the property resurfaced – this time listed for auction with a revised quote of $2.0–$2.1 million, well below the earlier off-market expectations.
As a team we re-engaged, bringing the client back into the fold. Due diligence was paramount: the contract was reviewed by a legal professional to check for compliance and any issues with past renovations.
Only after the legal review was a building and pest inspection arranged, ensuring no money was wasted on a property with potential legal pitfalls. The inspection revealed only minor issues – some wood rot, a bit of rust on the roof, but nothing major.
The team walked the client through the report, distinguishing between minor and significant defects, and confirming the property’s suitability.
Auction day: strategy, nerves, and negotiation
On auction day, the client and Wakelin agreed on a clear plan. They were prepared to pay a touch more than $2.1 million if needed, but the aim was to secure the property for less.
Bidding began at $2 million, with little competition – just one other serious bidder. The property was passed in to us at $2.08 million, $20,000 below the top end of the quoted range. The agent set the vendor’s reserve at $2.2 million, but we held firm, signalling we would only negotiate at $2.1 million.
The vendor dropped to $2.18 million, but with our client’s support, we didn’t move, and communicated clearly: $2.1 million was the best offer. After a day of reflection and a cold, wet Sunday the agent called back. The vendor was ready to accept $2.1 million.
The deal was signed that day, securing the property at a competitive price for the client, and below what might have been paid in a rushed, private negotiation.
Lessons in patience: The makings of a successful purchase
- Market selection: The client took time to research and choose the right city and asset type.
- Asset selection: The client and Wakelin team walked away from properties that didn’t fully fit the brief, even when they were close.
- Negotiation: They refused to be pressured by shifting price expectations, holding their ground and waiting for the right moment.
- Due diligence: Every step – from contract review to building inspection – was handled methodically, ensuring no surprises.
The result? A quality asset, secured at a fair price, with the client now well positioned to benefit from future market growth.
Meanwhile, the vendor, by holding out, may have cost themselves a higher sale price, given there was willingness to negotiate earlier in the piece.
Take home message
Patience isn’t just a virtue in property buying – it’s a strategy.
By taking the time to research, resisting the urge to rush, and knowing when to walk away, buyers can avoid costly mistakes and secure higher quality property assets that generate long term returns.
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