- wannabe2Member@wannabe2Join Date: 2003Post Count: 65
the numbers:… we have 2 ip’s in sydney both 3 bed brick townhouses worth approx 250k each with owing on them 270k leaving 230k equity, one is rented for 270 pw and the other rented for 240 pw but needs a new kitchen before the rent will be put up.
we live at coffs harbour nsw and have seen an empty house that the owner (who lives in sydney) has just employed builders to renovate before re renting out. our question is.. we’ve approached the owner looking to see if he’s interested in a swap before he pays for a reno and he’s talking to his sons,but how could we make this deal work if he says he’s interested?? i am assuming that he has nothing owing on his house due to the age,it would need approx 50k to renovate this new house and i reckon on the value being approx 400k as it is now ,once he’s paid for the reno i think the rental for him on this property could rent for approk400 pw, but as i said we want it as a ppor..any help would really be great as i can see this being a win win and possibly the deal of a lifetime for both of us,just not sure of the legals etc…Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
Let me get this straight. You have property worth 500k, and you want to swap it for property worth 400k? This is a no brainer. Unless this guys is emotionally attached to the house, he is the winner.
I would certainly go for such a deal!sonyasalMember@sonyasalJoin Date: 2008Post Count: 421
You are prepared to let go of your two properties that give you income, how will you service the oustanding amount of $230K. Also you will need to both factor in the legal side of things such as stamp duty and any other sales 'duties'. As far as I am aware you cannot swap ownership between people unless you are related.
Just something for you to think about and perhaps seek some legal and financial advice
Sonyawannabe2Member@wannabe2Join Date: 2003Post Count: 65
thanks for the replies ,as a point we would be interested in swapping our 2 ip,s worth 500k for a home worth 400k but with the view that the 4ook home could be made into our dream home worth a lot more after we’ve renovated and spent money on it. also the 270k mortgages would somehow need to be factored in perhaps with us giving the 2 ip’s plus 100k debt on them also to try and even up the deal.
also we have our ppor in coffs harbour that we own outright and would be able to then rent this out as an ip. this is with the view that this guy gets 2 houses with rents around 500pw for his retirement,this is why we think it would be a win win but like we said not sure if anyone has done any deals like this before, any other comments would really be appreciated..thank you