first ever proposed purchase with emotional attachment!

[xactly]

We are currently renting and have been notified that in a year or so the owners are thinking of selling.
im guessing the 6year PPOR CGT clause is going to kick in.

we have always followed a rent and invest strategy but this house we like, it has features with scarcity value and we might finally be thinking of putting down roots.

How would you go about negotiating in the future?

I guess flagging that a private sale with no real estate agent fees might be a win win.

get a valuation and use a third party to negotiate?

for the first time, Im hoping for a real-estate crash in 1-2 years!

 

[The Y-man]

When we advertised one of our aprtments for auction, one of the (best) offers was from the tenants. We sold it to them on auction terms (unconditional). Saved them moving, and they obviously liked the place.

I would certainly let them know you are interested, and what price they are looking for.


The Y-man

 

[knightm]

We are currently renting and have been notified that in a year or so the owners are thinking of selling.
im guessing the 6year PPOR CGT clause is going to kick in.

we have always followed a rent and invest strategy but this house we like, it has features with scarcity value and we might finally be thinking of putting down roots.

How would you go about negotiating in the future?

I guess flagging that a private sale with no real estate agent fees might be a win win.

get a valuation and use a third party to negotiate?

for the first time, Im hoping for a real-estate crash in 1-2 years!

I have sold 2 IP's to tenants. I can say (for me) its been a pleasure both times, I was happy they got what they wanted and whilst I didnt fire sale the properties at all I was probably a little more negotiable because they were my tenants and there were no agent fees. I passed most of this benefit onto them.

If its in brisbane the not much chance of a major crash.

U have identified your options you can negotiate yourselves, or use a 3rd party (BA or a similar). You can get a sworn val beforehand or if using a BA they will do an appraisal based on comparative market sales.

Definitely work out what you think its worth before starting any haggling.

 

[jerryparker]

Go in with a low cash unconditional offer.

come up with everything thats wrong with the property and the cost of fixing

Keep the agent out of the picture as much as possible.

When they reject the offer based on price. Discover the price they will accept.

Change your offer to their price but your conditions (make sure you have an out)

Then you have the property of the market in your control.

You can see how that "feels" and if it motivates you in life, then its a good investment.

Jerry Parker

 

[see_change]

Go in with a low cash unconditional offer.

come up with everything thats wrong with the property and the cost of fixing

Keep the agent out of the picture as much as possible.

When they reject the offer based on price. Discover the price they will accept.

Change your offer to their price but your conditions (make sure you have an out)

Then you have the property of the market in your control.

You can see how that "feels" and if it motivates you in life, then its a good investment.

Jerry Parker

Sorry , I think that's wrong .

you risk alienating the owner . Much better to be nice .

If a tenant did that , I'd be thinking . ********s . I'll sell it to someone who doesn't know the flaws and won't try and talk the price down .

They may well give you notice to leave and then market it when you are out as they will be concerns you might try and bad mouth the property if you are still in there when they market it .

That's what I'd be doing as the owner . As the owner I want as much as possible and someone negotiating from a hard ball position isn't going to give me that .

In your situation , I'd be saying , we REALLY like the property and would like to buy , BUT , we do have limited resources , how much do you want for it ?

Try and get them to open the negotiations re price

Vendors like to feel that people like their properties .

Cliff

 

[see_change]

If you think their offer is unrealistic , at that stage , I'd think about coming in with the , " we like it , but it does need work , there's xyz wrong and that will take $.. to fix "

"If it didn't need work what your asking might be reasonable , but ... "

Cliff

 

[xactly]

Thanks Cliff. I think this is helpful

Happy to play hardball with an investment. But I think cultivate a respectful distant relationship and show willing to pay fair value when the time comes is the way to go.

Strange. Never felt attached to a building before. Rented all my adult life and invested. Feels odd to want to put down roots.

Cheers
Xactly.

 

[The Y-man]

Strange. Never felt attached to a building before. Rented all my adult life and invested. Feels odd to want to put down roots.

Cheers
Xactly.

It's kind of the best deal because you get to "try and buy" - you have basically sussed out all the problems with the property etc - IMHO that in itself takes out some of the risks with the purchase, and worth paying a bit extra for.

The Y-man