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This is kind of similar to the position I and my vendor are in (gf's mom) she paid $290k for the unit we are in and was willing to sell it to us for $275k (with a $15k proviso if we sold it within 5 years) at the time the $275k was her remaining mortgage and legals.
Unfortunately she fixed the mortgage for 5 years out of fear while it was going up only 6? months ago.
They now want $17k break costs if she sells so our new price is $289k (with no proviso) which I still think is pretty good for where I am here in Surry Hills (studio with car space) simillar units in this building sell for $290k without car space to $340k with and should be easy to rent out at aprox $350-400
The real danger is if our loan does'nt get approved soon and rates go down before the change over then her break cost will be worse.
I guess what I am saying is that for lots of silly investors that fixed at the wrong time the break costs are a problem at a time when they need to sell, it basically means that if they want to sell it has to be at a loss or break even if they are lucky as the market has been a little flat, but I don't think it will stay flat forever,
maybe retry your calculation, if the new numbers work for you then consider going ahead, if not walk away.
All you need to do is to actually move in to your mates unit and him into your.
Then they can't say anything, and you would not be breaking any law,
this is a strategy that was explained in Anita Bell's book
"You're Investment Property" as long as you both pay market rent.I sell these at work (Good Guys Chatswood Sydney) and bought the Samsung, before the free tv promotion sadly, 3 year warranty
and a great tv, I liked it so much that I bought a smaller one for the bedroom, all before I realized thanks to buying Rich Dad Poor Dad (for $3 at St Vinnies)
that I had better stop paying for doodads, pay out my debts and start saving for assets, which lead me here..good luck with your tv and you should find a great deal just by hunting around and checking out
