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I remember seeing an article in Australian Property Investor magazine about student accommdation, an option may be to lock them into a 12 month lease, with it commencing at the start of the school/uni year with suitable conditions to cover yourself if they break early, eg a guarantee provided by parents, stuff along those lines.
Hi Jamie, great advice there. As an example, my offer was 5% under asking price, and this was based on the past 3 months of sales in the same and surrounding suburbs for properties similar to what I was going to purchase (2 bed/1 bath/1 car space) as well as looking at 3 bed houses for comparison as well (No 3 bed units built in the era within that suburb.). It wasn't realistic for me to go lower than 5% under asking based on this evidence. They dropped their asking price, no one else showed and interest, so they ended up calling me to see if I was still interested in the property and accepting my unchanged offer, providing early access to plan renovations and commence demolition once the existing tenant vacated.
JacM wrote:Also I'm unclear on whether the equity cannot be accessed while there remains a debt on the property, or whether the equity cannot be accessed at all.jac
You can certainly access the equity in a property where there is an existing debt, so long as there is sufficient equity to meet your needs and it falls with in the maximum LVR your financier is prepared to lend.
I purchased my first property, did some renovations, had the property revalued, over $70K in equity and borrowed $52K of this to ensure it fell below the bank's max 95% LVR.
