Buying my neighbours house: Yes/No?

[GoldenChild]

Hi Guys,

My neighbour is going to be selling shortly and I'm in a position to pay fair market value for her home.

Whilst I'm not going to suggest any sales methods etc to her I thought I'd have a crack at it if the price is right.

I would look at renting it, with no further plans, at this stage.

The combined land would be a little over 1200sqm and with my neighbour on the other side selling in a few years I thought I might be able to purchase that too when the time is right. That might make things interesting.

So at this stage I'd like to know if having your investment property next door is something you shouldn't do or it makes no difference. Has anyone done this and has it been something they've regretted doing. I will be using a REA to manage the property etc.

Cheers,

Bruce

 

[Television]

If you think you can make a good case for what fair market value is (portfolio of 4-5 comparable recent sales plus any other supporting data e.g. recent bank valuations of your PPOR) then you could approach them directly and make your case and point out that they would save on agents fees.

Can't hurt to ask?

 

[depreciator]

Even if you use an agent, the tenant will find out you own the place.
Having tenants is always a lottery. Knowing you are next door might make them take better care of the place. Or they could expect you to come in and fix stuff all the time.
The opportunity for a strategic purchase is pretty compelling.

 

[Propertunity]

Same question answered on this thread: http://somersoft.com/forums/showthread.php?t=41985

 

[gavins1]

I dont think the tenant would necessarily find out you own it if you use an agent, but if they did I reckon they would knock on your door complaining all the time...






http://www.centralcoastbjj.com

 

[GoldenChild]

Thanks guys for the comments.

Whilst I'm not too keen on having to deal with the daily issues of a tenant, I like our street. I've considered moving to a larger block but thought this would be a better option giving the costs to move etc.

Ultimately the neighbours on both sides will sell and I'm hoping to own both and then decide on either developing or selling to a developer.

 

[Jaggannath]

I think do it so long as the price is right. One thing you haven't mentioned is location though, which is important in these considerations.

 

[GoldenChild]

I live in Blackburn. If I'm lucky it'll be less than 800k.
My confidence level has dropped however with the latest real estate quarterly report suggesting the median price has increased 150k in the last quarter.