Advice on investment property purchase sold with untrue rental income

Hi peeps

I just signed a contract on an investment property. I was told (and property was advertised as) that "...currently brings in ... rental income over $130,000 per annum. "

Income is not over $130k, highest ever per annum is $115k. It has never had an income close to that figure.

My contract is subject to finance, the subject to finance clause expires this friday.

I don't know how big of a deal to make of this. I want to buy the property still, but I think this is BS false advertising. I would perhaps like a price reduction or some other extra in lieu of this.

Given how horrible it has been to deal with the vendor I very much doubt he would do anything without lawyers involved. I'm not sure I can be bothered going down that path.

What do others think? Suck it up? Crack a big stink?

 

Wouldn't you normally ask for evidence of rental income prior to purchase?

 

They lied about the income in their advertising but you've picked it up and are still considering purchasing the property. The false advertising is probably an issue for fair trading or similar. You've probably got grounds to exit the contract, tell them you won't report them if they let you walk and amend their advertising campaign. The question of should you exit the contract, is a financial decision. Does the deal still stack up on the reduced rent?

 

You have the opportunity to terminate the contract - need to decide.

 

Is this a commercial property, might i ask? how come anything residential generate 130k income per year

 

Here's 90 single resi houses just in NSW getting that type of rent.
Houses For Rent between $2,500 and any in NSW (Page 1) - realestate.com.au

 

Watsons Bay address available on request - House for Rent #419146410 - realestate.com.au - here is one for 780k p.a.... Thinking of getting an application