We have a property for sale in Yangan near Warwick QLD, we also advertised it for rent last week, a tennant has just applied for 12 month lease at $220 p/w I could still sell to investers but it would only yeild 5.37% so may be hard to sell as investment, but having it unoccupied is killing us financialy, this rent comes very close to paying our loan re-payments (means we will only have to contribute about $40 p/w)
Unfortunately, we had/have an interested buyer going to look through the property this weekend, i don't want to put off tenant incase the prospective buyer doesn't want it, yet I don't want to lose a sale either!
What would you do?CairnsAgentParticipant@cairnsagentJoin Date: 2007Post Count: 1
If there is no offer from interested party on paper…I would be inclined to take the tenant.
You are in a position where you need the rent to help cover the costs…in the worst case scenario you may have to hold the property longer until close to the end of the lease, then advertise say at the 10 month mark of the 12 month lease. You then have the option of advertising it as with or without tenant. The property may also be worth more in 12 months time.
This will at least help with the finance burden!
Yes that is what we have decided to do, as the water problem in the area will be recitified by christmas (very yucky water) I think the area will improve value and sales wise. Now I just wish the PM would call me back so I can discuss with him. I've gone through all this worry and now i'm wondering if the prospective tenant has even looked through the place as yet and if he's actually put in an applicaton or if he was just 'interested'!
Hi there, why dont u ask the tenant if he is interested in a rent to buy. Therefore, he pays for the service of the investment as well as buying it. The investment remains under your title until full repayments have been met. It may give you more options and time opportunity.
I thought of that, but I don't have his name or contact details as it is through real estate that we will be renting it out.
How about contacting the Real Estate for any potential rent to buy clients? Let the real estate do the research, and u provide the conditions that suit yourself, u can build a rapport without to much hassles. Make sure u screen the real estate as well as the tenant/buyer.
Yes, but then I would have to pay the real estate a commision, and I don't know that they would like to wait a few years to get it
That’s a small price to pay. U can claim back the commision thru tax deductions.
Apply your conditions and a fixed commision to suit your needs, dont speculate or determine the outcome of your situation.
If the real estate doesn’t like it, go to someone else who does. At the end of the day, take your business ‘Money’ some where else where u can ascertain good value.