While miners rush, savvy investors show patience when buying new apartments: Residex’s John Edwards

Property investors have patience and hold off buying in a brand-new apartment project until the last few units are listed for sale at discounted prices, according to Residex’s John Edwards.

Edwards says developers will often discount the last few units that they are struggling to sell and investors can secure discounts of tens of thousands of dollars.

He made these observations in an interview with Peter Switzer on Switzer's Sky Business investment program this week.

Edwards says the unit market is the one being targeted by investors but is also the one most likely to “correct” should the economy turn downwards.

Asked by Switzer if he would advise his family members to invest in a brand new apartment, Edwards was adamant.

“I would not be steering them into a brand-new unit.

“Have you ever tried to negotiate a price with a developer?… It’s almost impossible.”

But, he says “colossal discounts” are possible if you hold off and approach a developer when the project is almost finished.

Edwards says he's aware of savings as much as $70,000 discounts by waiting.

According to Edwards, the Australian unit investor market was being driven by miners.

“Now that’s a bit of a risk because the miners  have a greater tendency to overpay as they have a higher income then the others.”

This means anyone bidding against them at auction could end up paying too much.