Hello.
Mods if there is a better category for this thread, please move it.
Just wondering if anyone knows where I might look to find someone that would be interested in buying a property and offering it as rent-to-buy?
Below is my idea/offer, and the reasons I think an investor might be interested. I'm just not sure where to find that investor...
Any feedback on where to post an ad and feedback on how to better put together the information below as an investment proposal would be appreciated.
Are you looking for your next investment property?
Wanting greater rental return than 8-10% and none of the headaches associated with unexpected repairs, vacant periods or nightmare tenants?
If this is you, read on.
My partner and I are looking for someone who would be interested in offering us a rent-to-buy property. We have our eyes on a property on the market for $135,000 in Northern NSW. We are at least two years away from getting a bank loan because we are newly self employed so are looking for someone with capital or equity who would like to buy a positively geared investment property in the region and offer it as rent-to-buy.
The way I see it, a potential investor would buy the property. We would rent it at well above market rent. So if the mortgage repayments were around $350 a fortnight, the investor might get a guaranteed $300 per week in rent- That's $175 per week in passive income.
Over two years, that's a 35% return on investment if you put 10% down.
Or 17.5%pa.
Some problems with rental property investments are:
1. Vacant periods
2. Terror tenants
3. and, unexpected repair and maintenance costs.
In a rent to buy agreement, you'd bypass all of those issues as we'd be living in the house long term, investing our own money to improve the property, and covering all of the repair and maintenance costs.
In addition to that, you'd have a guaranteed buyer for the property in two years time, at a guaranteed price.
If the purchase fell through, you'd have pocketed above market rent for two years, and would potentially benefit from significant capital gains from any improvements we made to the property.
Mods if there is a better category for this thread, please move it.
Just wondering if anyone knows where I might look to find someone that would be interested in buying a property and offering it as rent-to-buy?
Below is my idea/offer, and the reasons I think an investor might be interested. I'm just not sure where to find that investor...
Any feedback on where to post an ad and feedback on how to better put together the information below as an investment proposal would be appreciated.
Are you looking for your next investment property?
Wanting greater rental return than 8-10% and none of the headaches associated with unexpected repairs, vacant periods or nightmare tenants?
If this is you, read on.
My partner and I are looking for someone who would be interested in offering us a rent-to-buy property. We have our eyes on a property on the market for $135,000 in Northern NSW. We are at least two years away from getting a bank loan because we are newly self employed so are looking for someone with capital or equity who would like to buy a positively geared investment property in the region and offer it as rent-to-buy.
The way I see it, a potential investor would buy the property. We would rent it at well above market rent. So if the mortgage repayments were around $350 a fortnight, the investor might get a guaranteed $300 per week in rent- That's $175 per week in passive income.
Over two years, that's a 35% return on investment if you put 10% down.
Or 17.5%pa.
Some problems with rental property investments are:
1. Vacant periods
2. Terror tenants
3. and, unexpected repair and maintenance costs.
In a rent to buy agreement, you'd bypass all of those issues as we'd be living in the house long term, investing our own money to improve the property, and covering all of the repair and maintenance costs.
In addition to that, you'd have a guaranteed buyer for the property in two years time, at a guaranteed price.
If the purchase fell through, you'd have pocketed above market rent for two years, and would potentially benefit from significant capital gains from any improvements we made to the property.