Buying a tenanted property

For a first home buyer buying PPOR, how does one approach making an offer on a property that’s currently tenanted on a month to month basis?

Can I write a condition into the COS stating that I want the property to be unoccupied by settlement date (which would be 60 days in Vic to allow enough time for the landlord to issue notice to vacate due to sale)? What happens if the tenant doesn’t vacate the property by date agreed with vendor, or damages the property during the settlement period?

Also how do buyers go about checking the property for signs of damage if a tenants’ furniture blocks access or visibility to parts of the property? for example, a rug on the floor that could hide water damage? Can building and pest inspectors move furniture around?

 

1. Yes.
2. Then the vendor might be in breach of the contract.
3. With difficulty.
4. Maybe.

 

Re furniture how is it different if it was owner occupied?

Also water damage on the floor is rarely an issue. Should look for water damage in the ceiling or walls.

You need to discuss the buying process with your solicitor or buyers agent?

 

Buying a property with a tenant means the property will forever be subject to pro-rata CGT and can never be 100% exempt since you didnt move in as "soon as practicable"after settlement. You cant use a tenancy as a suitable reason. Its a factual issue that can be used as a negotiation point for your preferred option of vacant possession. However the landlord may incur costs to break a lease

Most P&B inspectors use a meter that looks for dampness and will sample at regular intervals behind or beside articles. If access is poor however they will qualify the report making it a bit unreliable. A freshly painted new ceiling etc may mask a issue that is undetected. They do tend to look for the unusual. If there is a specific area you want focus on then ask. eg under floor inspection & stumps, ceiling, rook. Some now use small drones to get a HD view without climbing up and breaking tiles.