ok
hi guys,
finance is the first step – then make sure it is a sound investment before you go ahead.
I once lived next door to a rental property that I owned at it was slightly uncomfortable . the agent was not supposed to tell the tenant we lived next door but they found out. no major problems though.
cheers
I Buy Property http://www.cashflowproperties.co.nz
Originally posted by nellandtony:We are considering buying our first investment property – the house next door! The vendor will sell privately. What traps should we look out for in regards to private sales?
First potential trap – don’t be seduced by the need to see your property. Make sure this decision to buy (or not) this property is on sound investment grounds and not emotional grounds.
Make sure you can afford it.
Make sure the sale is ‘supervised’ by a legal beagle. While handshake deals can be great sometimes misunderstandings can cause a great deal of distress down the line. A solicitor (conveyancer) will help manage this eventuality.
Get pest and buidling inspection done. You may think you know the property inside out – but do you really?
When tenanting the property use a property manager. It is best to keep the tenant relationship at arm’s length. Even though they may seem ‘nice’……………………..Fulfil your obligations as a landlord and let them fulfil their obligations as a tenant.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Nell and Tony,
If you choose to go ahead (taking into account what the other forumites have said) this is a few other things I suggest-
Note: This is quickly off the top of my head. I could have missed some things-I am sure others will add to what I have said. Try and get as much due diligence done before you start spending money on services because something you find in the early research may turn you off the property-
*See a good mortgage broker and get the loan application process moving.
*Find out the selling prices of comparative houses in the area?
*Make an ‘under the market ‘offer on the property. (Unless you desperately want it for some reason other than a good investment).
*Talk to a solicitor about putting a contract of sale together with the conditions that you require.
*Make sure you organise plenty of time on the contract for building pest inspection to get done.
*Get building pest inspection done.
*Find out what the lender valued the property at.
*Assess building/pest inspection report before unconditonal date.
*Possibly negotiate lower price (depending on condition of property).
*Make sure loan is approved before contract goes unconditional.
*Proceed to settlement if everything works out.
Todd Burns
http://www.freepropertyhelp.com.auHi NellandTony,
Thanks for your post.
I have a couple of points to make…
1. Are you buying the house next door for an investment, or as something you may want to extend on in the future? If it is an investment, then it is a matter of return and maximising your money. If it is a lifestyle decision, then that is different and it comes down to affordability.
2. Whatever the decision, the two areas that you should check out thoroughly are:
> The physical property: What condition is it in, especially in the area where you can’t easily see (electrical, plumbing, floor, stumps, roof). I suggest you pay an inspector to do this for you.
> The numbers: You have to be aware of the financial implications of your decision. The four questions are: how much down, how much back, how much time and how much risk.
3. If you are investing, what is your plan or strategy for the property? That is, how are you going to make money?
As for buying privately, I can’t see the issue here, provided you can negotiate price and or sale terms that meet your requirements. I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.
Still, no harm in trying [exhappy]
Let me know how you get on.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
hi steve and all,
I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.or they could be “highly motivated” and very negotiable on price
I Buy Property http://www.cashflowproperties.co.nz
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