Buying Property during x-mas - Love it or hate it?

Been in the market the past two years during Christmas and picked up good deals. Going to be hard watching from the sidelines this year.

End of year resolutions + interest rate jitters, going to be great buying

Cheers,
Michael

 

It's not really a concern. Just something to be mindful of when deciding on your dates that are relevant to the contract.

Most experienced property professionals are hyper alert and aware of Xmas trading hours and the issues it brings. They will typically raise it if you have accidentally overlooked this or when you are discussing getting an offer on paper. If you are personally alert to it in advance then its simply a call to all the relevant property professionals to co-ordinate with them what is viable and do-able.

 

If it is a family area and your property suits families you might be ok - some people who don't get in somewhere before Christmas will look before end of Jan to get their children ready for a new school in the new school year.

can you negotiate early access or a license agreement and get it listed for rent right now? Owner can get the rent until settlement?

 

I see. If the places are empty and you want to put the seller into pain let the current owner deal with owning empty places over Christmas (and assuming they still have mortgages on them... let them pay the holding costs)!

You run the risk of having trouble getting tenants in Jan, but I think you'd have the same risk in December anyway. So I don't know how much benefit you stand to gain by settling in December. However the current owner will probably lose out if you settle in Jan though for reasons stated above... unless they end up furnishing and Airbnbing or have a very short temporary lease situation before sale... and very few people would do that!

 

So has this Christmas-Induced-Desperation-Fire-Sale started yet? Shops have certainly had decorations up for a while now and a 42 day settlement would finish just before Christmas eve.

 

That's the plan.

I've asked the agent to get the vendors to get tenants in ASAP, he worries that because of the yield (9%+), there is a chance that one of the vendors will take the property off the market and not sell!

 

This is a myth.
Because of the competitive zoning restrictions, many schools particularly high schools require proof of purchase documents or lease documents up to 12 months prior to enrolement.

People aren't going to get their children into a sought after high school by moving into an area 2 weeks before the school year begins. It's not gonna happen.

 

Some people have that mental timeline, want it sold by Christmas/want to be in it by Christmas.
Keep looking, doing research, go for it if something pops up. But I tend to prefer the cooler months for buying.

 

Personally, I would not be allowing the vendors to tenant the property, I would be doing it myself. You will be stuck with the tenants they choose once you settle. This is not a great idea.
With the right agreements in place you should be the one who selects your property manager and subsequent tenants.

 

True, but in this case the property manager for the vendor is also my property manager, and we're on good speaking terms.

 

That's good!
I personally just like to be in control of my outcomes where possible. Especially if I have a larger vested interest in an outcome.

 

I've got a place going on the market this week, see how we go. In no real rush as holding costs are minimal. Wanted to get in on the market now as everything seems to be selling extremely fast in the area

 

Where abouts?

 

My offer on a property just got accepted. Hoping to settle before christmas.

 

In reynella

 

We've bought a couple around Christmas time and both have been a pain in the neck especially dealing with solicitors. From memory both properties did not settle until the New Year however as others have pointed out people sometimes want closure and a re willing to take a deal.

 

Well done Larry, where abouts is this one?

 

Hoping for some 40+ degrees over the xmas period so we can buy a new PPOR

 

Really? Where did you read that? My understanding based on talking to local principals (NSW) is that they are tightening up the out of zone funding (with a transition period over the next year or so), but if a kid lives within zone, they have to accept them. Eg, what happens if someone has to relocate for work mid-term?

Schools LIKE to know about enrollments early so they can plan ahead (we had surveys for the past 2 years asking about kids starting in 2016), but that does not mean they can reject in-zone kids due to late notice.

Cheers,
Inertia.

 

To keep the other potential purchasers away?