Well my house is going onto this market in the next week or so and my tenant is moving out by the end of the 1st week of May. I wanted to put another tenant in there for 3-6 months because i am worried I won’t be able to afford the mortgage repayments without the rental income.
However, my sister warned me about doing this. She said that it’s alot harder to sell a house whilst tenanted and you have ot give 2 months notice before you can out it on the market. Can’t I have a lease in place where the tenant knows and agrees that the house will be on the market as soon as they’ve moved in??
Thanks for any help!
pasandbecPropertyAngelMember@propertyangelJoin Date: 2005Post Count: 27
hmm well its “damned if you do damned if you dont” situation. I think really you need to go with what you think. You never know you may find a tenant that wants a specific short non periodical lease who is happy to work with agents and around opens. I guess the bottom line is .. you’ll never know unless you give it a go…
I think you’ve already made up your mind though as you know you can’t or don’t want to handle the repayments on your own each month. Maybe you could look around, some students want short term accomodation.
I think you should just get out there and look now while you can. The more you procastinate about doing it while you have a tenant the less chance tou have of getting another to move in sooni after the original tenant leaves.
destiny is in your hands my friend![angel]
No Such thing as CAN’T!
Thanks for your reply PropertyAngel!
Do you know the legal aspects surrounding selling and tenanting at the same time?
Can the townhouse be for sale before the tenant moves in? How much notice do I have to give the tenant if a buyer wants to be owner-occupied?
The townhouse is in the ACT.
I directed my last post at PropertyAngel, but really, I’d like anyone’s advise on this matter.
pasandbecBecksomaParticipant@becksomaJoin Date: 2005Post Count: 11
Not too sure on the law in ACT but in Qld you have to provide a notice to the tenants when you list a house for sale.
You may find that your choices of tenants might be limited by the short time frame which may cost you $ in the long run – you have to weigh the options up!.
â€œItâ€™s about the Journey not the Destinationâ€DerekMember@derekJoin Date: 2004Post Count: 3,544
Aside from the tenant or not to tenant question there is also the question that needs to be asked “Why sell?”
Entry and exit costs in real estate are significant and as such selling, without good reason, will see you throw away some of your hard earned gains.
Peter Spann has three reasons for selling – bought a dud, you get an offer to good to refuse or you have better use for the money.
Hi Derek [biggrin]
I would like to sell because I want to put the profits of the house into my pertner’s and I’s mortgage so that we can pay IT down to a minimum amount so that in 4-5 years time, we can afford to live off a single income (because we will start a family).
I figure with house prices slowly dropping over the next few years and keeping in mind the INTEREST WE WILL SAVE on our mortgage (by paying off a large chunk now)…..well the increase in value of my property (that’s going to be for sale) will probably not even come come the amount of interest we will save on our mortgage.
BTW, still unsure about whether or not to try and rent the [for sale] property out or not, guess I will just see how many bites I get (both with people wanting to rent it and buy it). My sister said to speak to the banmk about putting a hold on repayments until the property is sold, or making the loan interest only, or something, so that we can manage the repyments whilst we’re not receiving rental income.