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Eager buyer now - too early?

Discussion in 'The Buying & Selling Process' started by JessicaP, 2nd Feb, 2016.

  1. JessicaP

    JessicaP Well-Known Member

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    Hi all, we have just been approached by one of our renters who is eager to buy the house. They have just been awarded a large sum of money from vic roads for an accident they were involved in and would be paying cash.

    The price they have offered is very reasonable imo. The thing is - we weren't really looking to sell for another few years. This house is cf+, low maintenance and the tenants are excellent. Current loan on the property is ~ $190K offer is $300K, could we transfer security for the loan amount to a different property and use the $300K to reinvest?

    I could ask my broker (who is a member here ;)) but thought I would just get some general info seeing as nothing is really set yet....
     
  2. Bran

    Bran Well-Known Member

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    Check your tenancy agreement if you are using a PM
    Some agencies write in a clause along the lines of: 'if the tenant (that we found) buys the property, we get the commission'.
     
    BigKahuna likes this.
  3. Big Will

    Big Will Well-Known Member

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    Also don't forget about your rebuy fees, e.g. Stamp Duty will be your biggest expense.
     
    JacM likes this.
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I've been in a similar situation. My advice would be not to allow a tenant's capacity to pay, or timing, to influence your own agenda. Just because someone has some money and wants to buy your IP should not influence who, when or for how much you ultimately (if ever) sell for.
     
  5. Bran

    Bran Well-Known Member

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    I wouldn't sell it unless you had otherwise wanted to. You can withdraw your equity x 80% - 190k and invest right now, without the selling and buying costs.

    And the PC answer: What's your big picture? Does selling help you get there?
     
    wylie likes this.
  6. The Y-man

    The Y-man Moderator Staff Member

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    If there is something better to replace it with (i.e. better location, bigger land etc), then do it.

    The Y-man
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Unless u get market price + extra to cover your stamps, why bother to sell?
     
  8. JessicaP

    JessicaP Well-Known Member

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    Location:
    Melbourne
    I think this would be the only reason to sell. I would sink the money into another subdivision. Might have a look and see what's around. Thanks for the advice everyone, definitely given me some food for thought.