Hi folks,
Just a quick question about a possible investment opportunity for myself. Basically, I am due to start renting a property whilst I am doing a 6 month placement outside of Adelaide. The owner is thinking of selling it after I move out after the 6 months. It seems like a good reno property (2 bedroom unit) in a booming town, with mainly cosmetics required. The reason I would rather rent than buy right now is because I get half my rent paid through my job ($130/week), but wouldn’t if I owned the property. So what I was thinking was renting it, but offering to buy it, sign the forms etc for a 6 month settlement and do the reno whilst living in it then sell as soon as I officially own it.Does this sound like a feasible plan, and does anyone see any obvious flaws I am missing in this scheme? Or would it just be way easier to buy the thing straight out given the rent money I will get will only add to $3380? Anyone done something similar? Could this potentially work out to be a good flip? Thanks for your thoughts.
I think you should try to get the extra $3380 as every little bit helps. Pehaps ask your company if they would pay for rental money if you were doing a "rent to buy" property rental. If they say yes? Then just do up the paperwork as in a typical rent-to-buy deal.
Amanda
I agree with Amanda, it's easier to say $3,380 than it is to earn it!
It seems to me that your proposal would not materially affect your employer.
You can legally enter into a contract to purchase with a longish settlement, as you have proposed, with the condition that you may carry out improvements to the property as agreed with the vendor.
It's not a simple contract, but sounds like it may be worthwhile.
Good luck.
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