QLD First Home Long Settlement

Hi everyone,

I’m a FHB looking to purchase a property that is currently tenanted for 10 months. It just so happens my lease runs out in 9 months.

My rent is cheaper than a mortgage so I’d be happy to delay settlement for as long as possible & save more, but not so long that it becomes too risky for me.

Options:

• Buy now and become a landlord for 10 months?
• Delay settlement by 3-6 months+ and be a landlord for a period of time if it’s less than 10 months?

As far as becoming a landlord goes, what would make this a good or bad thing?

What grounds would the seller have to break to contract?

What else should I be considering?

What type of house insurance would I need if I lived there now vs. be a temporary landlord?

Any other thoughts or tips would be appreciated.

 

Hi Jello,

Look for similar posts on long settlements or synonyms for delayed. I remember some of the more experienced investors advising someone else on this.

Consider if the bank might change its loan offer to you in the next 3-5 months if you want to delay settlement. Maybe your pre-approval expires, etc.

I think there are some conditions with loans or insurance that as a home-owner you should move in within 6 months the or 1 year from settlement. Check and make sure what the conditions of your prospective insurer and bank loan are.

Consider that some landlords might be selling because there is a tenant that is hard to deal with or would be hard for that tenant to move out. In the case the tenant prefers to stay, they might cause issues for you.

Good luck. Not easy to take these decisions. Hope you get some good responses.

 

There will more than likely be tax considerations if you become a landlord for several months. Consult an accounting professional on this one.