Just looking for some opinion regarding a current renovate and build rear unit deal we are working on at the minute. We managed to get access prior to settlement to complete renovations on existing home which are now complete as construction on the rear unit is about to begin.(Settled one week ago)
We plan to sell the renovated home and retain the rear unit which will be heavily CF+ although we are unsure whether to rent out the home for 6 mths immediately as we plan to sell and we are concerned regarding damage etc… and reduced sale price if the property is not well kept….
Is anyone currently in a similar position??? or has anyone been through the same problem and what approach did you use??? Is it best to get a tenant in ASAP and market the property to investors only?? We have another property that will encounter the same issue in around 6 weeks…
Any comment would be appreciated
Cheers,[thumbsupanim]
Here is a suggestion you could try,
Let it at a lower than market rate say 20-25% lower to compensate for the inconvenience of all the works going on in the back yard…and give them the incentive that if they take care of it you will assist them with moving into another property if the need arises.Hi,
We offered a lower rental for a pre-determined time to take into account disturbance of noise/dust etc. Tenant was great and knew he had a bargain rent . We gained by continuing to receive income. I think if we had tried to sell, a prospective buyer could have been put off by the above and could therefore look for a longer settlement. I certainly wouldn’t be wanting to lower the asking price for the above reason.
I don’t think there is a right or wrong, just what works best for your particular situation.Cheers
jebro
Thanks for your thoughts guys,
We are meeting with some R/E agents Sat morning to finalise plan but your suggestions are along similar lines to what I was thinking….
Thanks again
[thumbsupanim]
Letting ot a brand new or newly renovated house is like driving a new car out of the showroom. The moment this happens the value drops by $$k. If you can avoid doing, and sell as a newly renovated house before occupancy, then you will be better off.
Harley
Harley2, with most investors trying to squeeze out every $$ from their investments, keeping a rental property vacant is not viable. Ok so maybe some minor paint is scuffed and you need to touch up here or there.
Its better to do minor touchups while you still remember the paint colours six months or 12 months later, than then having to start again with a full reno.
I would suggest a photo record of before so you can check things accurately on the tenant leaving.
Anyway good luck with your investment.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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