Best way to approach tenants to BUY

Discussion in 'The Buying & Selling Process' started by Bran, 27th Jul, 2016.

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  1. dabbler

    dabbler Well-Known Member

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    He said "how far from Bris CBD"

    Just North up the road a bit Leo :):):) (Bran, I get a commission from any sale ) :D

    Bit of a pain that it would be so poor up there, such a nice part of Aus IMO
     
    dabbler, 30th Jul, 2016
    #21
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  2. Journeyman

    Journeyman Well-Known Member

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    Couple of thoughts. Rent to own arrangements are pretty good. You lock in your profit (future) at the commencement of the agreement. I have 2 and run dual agreements (tenancy and RTB) RTB is off if they fail to meet tenancy requirements. RTB reverts to tenancy only if they fail to meet RTB requirements.
    Also if its been stagnant for 10 years, is it possible there is a growth spurt around the corner? Hate to sell and then have the new buyer realise a capital gain.... I have one near Brisbane purchased 7 years ago. Still negatively geared (my only one not turned positive) and zero capital drowth.....I have agonised over selling because in my mind is HAS to catch up with the nearby markets at some stage.
     
    Journeyman, 30th Jul, 2016
    #22
  3. Bran

    Bran Well-Known Member

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    It's hard to see it coming in Cairns, but I'm buying a commercial property so it has to go.
     
    Bran, 30th Jul, 2016
    #23
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  4. wylie

    wylie Moderator Staff Member

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    The problem with rent to own is that you don't get a chunk of capital to put to better use elsewhere.
     
    wylie, 30th Jul, 2016
    #24
  5. Azazel

    Azazel Well-Known Member

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    It's a good spot, it will pick up again. Just a matter of time of course.
     
    Azazel, 30th Jul, 2016
    #25
  6. dabbler

    dabbler Well-Known Member

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    Must have been a combo of poor state of affairs in state for a while, mining reliance in general and high dollar putting off tourists.

    You would think it would have been improving by now.
     
    dabbler, 30th Jul, 2016
    #26
  7. Sackie

    Sackie Well-Known Member

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    oops..:oops:
     
    Sackie, 30th Jul, 2016
    #27
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  8. Bran

    Bran Well-Known Member

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    Screen Shot 2016-07-31 at 8.38.53 AM.png
     
    Bran, 31st Jul, 2016
    #28
  9. Azazel

    Azazel Well-Known Member

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    I guess different locations are doing different things.
    Glad I refinanced when I did.
     
    Azazel, 31st Jul, 2016
    #29
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I would give them notice to leave before you put it up for sale.

    Otherwise they may be able to argue you asked them to leave because they refused your offer to buy it.
     
    Terry_w, 31st Jul, 2016
    #30
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  11. Bran

    Bran Well-Known Member

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    Follow-up.

    Went unconditional today.

    3.5% less than my purchase price 8 or so years ago.

    I shudder to think of the overall costs given it was negative to hold the whole time.

    I just wanted it gone now. Depreciation was zip, growth has been zip, potential in the next 2 years seemingly zip.

    Efforts likely better elsewhere.

    Only remaining problem is a pittance of a deposit, so won't count the chickens til they are in my bank account.
     
    Bran, 21st Sep, 2016
    #31
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  12. Brady

    Brady Well-Known Member

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    Fingers crossed for your settlement. Hats off for biting the bullet on a dud investment. Best of luck going forward, has the comm property settled?
     
    Brady, 21st Sep, 2016
    #32
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  13. Sackie

    Sackie Well-Known Member

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    @Bran onwards and upwards buddy. Worst thing you could do (not saying you will) is let this affect your mindset moving forward.
     
    Last edited: 21st Sep, 2016
    Sackie, 21st Sep, 2016
    #33
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  14. dabbler

    dabbler Well-Known Member

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    Best not to think about it too much and move on now you have broken free :)
     
    dabbler, 21st Sep, 2016
    #34
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  15. Bran

    Bran Well-Known Member

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    No, contracts start getting sorted next month. This is in preparation.
     
    Bran, 21st Sep, 2016
    #35
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  16. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Get a DA and sell it as a development site with approval (DA uplift strategy) or as 2 x H&L packages.
     
    Colin Rice, 21st Sep, 2016
    #36
  17. Bran

    Bran Well-Known Member

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    Too late!
    The numbers didn't really work.

    Edit: I did go through town planning and spoke to some developers as well. Margins just weren't there given the existing dwelling had no rear access
     
    Bran, 21st Sep, 2016
    #37
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  18. Bran

    Bran Well-Known Member

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    I forgot to mention, whilst in the negotiation stage, we floated it to a few BAs, and no one was interested, really at any price. Indicates to me that its an investment dud, at least in present times. Great PPOR for the tenants, they've always loved it
     
    Bran, 21st Sep, 2016
    #38
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  19. bob shovel

    bob shovel Well-Known Member

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    It will be a relief for you to offload that sucker it was starting to get me down hearing you talk about it! You can wipe it from your memory and charge forward with a smile!
     
    bob shovel, 21st Sep, 2016
    #39
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  20. Bran

    Bran Well-Known Member

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    Settled today.

    Good riddance.
     
    Bran, 21st Nov, 2016
    #40
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