I wouldn’t mind some thoughts on this one. I bought my PPOR 3 years ago for 101,500 and currently my payout figure is at 96,000. It has been valued recently at 160,000 so I put it on the market as a rent back for two years where I am prepared to pay $180 rent per week for first year and $185 per second year. This is $15 a week above the market rental. Now people use all sorts of fancy formulas etc, so can anyone tell me from an investors point of view why this would look unattractive as I haven’t had the response me or my agent expected. Structually the house is sound and compared to houses in the area it is good in size too.
Tridean34 Developments
Tridean34,
Maybe the postcode has some restrictions with regards to the % loan you can get.
Maybe $160k is overpriced??
James
Tridean, maybe it is that your agent doesn’t get a lot of investors looking?
Perhaps the marketing is not targetting investors? And/or the sale price is as James suggested, too high?
Also I think some people are very wary about the owners wanting to rent back. Why are they selling? etc. etc.
Cheers
MelIf I saw your property for sale I will be cautious and think twice before I buy it because the vendor will rent back for two years $180 and $185.
I will ask myself questions:
1. After 2 years can I still rent it out at $185 per week?
2. $160k is it over price?
3. why the vendor is selling?
4. why the vendor want to rent back for 2 years instead of 6 months?Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Thanks guys, yes it is a strange one because all of those queries you guys have put forward in regards to my decisions can be answered quite whole heartedly by my agent. I certainly have nothing to hide and have told her so, yet it seems that no questions ever come my way. I have been able to probe her a bit and found out that my rumpus room needed painting, which I am doing, but that is the extent of it.
In regards to asking price it is definitely in the price range for our area but people are people and if I was in their shoes I would no doubt be cautious too,
Cheers[specool]Tridean34 Developments
tridean
Why don’t you put an ad for it on the somersoft forum? The addresss is somersoft.com and they allow advertisements on their “caveat emptor” forum. You’ll have to provide significant details about it, but that will be good anyway.
If you’re willing to sign a two-year contract with the amounts you’ve stated to pay as rental, I think you’ll have no problem selling it :o) For what it’s worth, I think it sounds like a pretty fair deal.
Best of luck with it!
kay henry
Like most residential leases (I am assuming your property is in SA), they can be broken quite easily at least from my knowledge in Victoria and the Tribunal here.
For example, you may want to leave after 14 months. Whilst as long as you give notice, the Tribunal won’t enter a judgement against you for the remaining 10 months. Unlike a commercial lease which can be different.
If I was negotiating buying it, specifically on the rental, I would want some guarantee, that you would be staying for 2 years and if not, there would be some compensation offered. A defacto rental guarantee if you like.
Just a thought..
James
James, so why do we have leases at all?
Leases cannot be broken so easily here in Canberra – not without a very good reason, ie landlord has not performed required repairs (critical) etc.
Other than that, the lease is binding, but can be broken if existing tenant pays advertising and letting fees for agent to find a new tenant.
Cheers
Mel
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