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For $5k (not even 2% of the purchase price) I wouldn't even bother thinking about it - buy the place! That's a rounding error, and if you don't mind going to $347k to secure it and you think $3k more is too much than you're a lot better at valuing properties than me! Hmmmm that probably...

Great Ken, now Martin's really gonna get a big head!! :p

Martin makes a good point. (can't believe I said that! :p) Offering them rent back should give them more piece of mind. That's what I did with the neighbouring property, as long as I had the sale finalised and the title deed in my banks hands (:rolleyes:) - I didn't care how long they wanted...

I did similar with a neighbouring block couple years back - go for it. Even without a 7th unit on the block you still get extra area for each of the 6 units which will add value to them (ie. bigger courtyards, more building area etc). Remember when dealing with the seller - you want to get it...