Buyers are bidding up to 25% above the asking price
Hi all,
After 5+ years of investment in the stock market, I'm starting my property journey seeking to create a steady & "reliable" income stream. To contextualise my purchase, I'm looking for a single or double room apartment in a fairly central part of Amsterdam. The market has seen some pretty extreme growth, some areas as much as 26% last year.
I've put in two offers so far, one at 10% above the asking price which got declined for an offer 25% above, another at >5% which got beaten by 15%. I've been told by several agents that investors are holding back and I'm starting to wonder whether I should be worried about bidding against "irrational" homeowners.
I was initially aiming for a 7% gross yield but 6% is now looking more realistic.
Should I also hold back? I would highly appreciate some of your thoughts!
Thanks, Charles