Offers 2 properties at the same time?

[catlib01]

I have viewed 2 properties both from the same agent in Greater Geelong. Both properties are slightly different in characteristics. From an investment perspective, I don't mind buying either of them, as both of them will suit my needs and criteria. I only have the funds to buy 1 property at this stage. Will there be a conflict of interest if I put lower offers in both the properties? One of them has not been officially placed on the market, so there will be less competition at this stage.

Also out of interest, would it be easier to rent out a 4 bedroom brickhouse or a 3 bedroom weatherboard house?

Thanks.

Catherine

 

[Electro]

First I don't think whether it's a brick or weatherboard house will have much weight on its rentability (is that a real word?), I would think the no. of bedrooms, condition of the place, size, practicality of the layout etc will have more of a bearing on its rentability...

As for the first question, once you've put an offer down in writing if the other party signs then it's a binding contract. If you do this on both properties then you risk buying both properties .

I would either put an offer on one with a short deadline of 24/48 hrs then if that fails put the offer on the other. The other alternative is you put the offers down on both and if a cooling off period applies you could cancel one of the contracts should both offers be accepted. In this case you would lose the deposit of $1000 or so.

 

[Peter_Tersteeg]

The lawyers should feel free to correct me, but my understanding of contracts is that you can make an offer and withdraw it without penalty at any time prior to the offer being accepted.

When one of the offers is accepted, simply contact the agent of the other property and withdraw the offer. Probably best to do it by phone and in writing.

 

[catlib01]

Thanks Eletro and PT_Bear,

I agree with what you said Electro in relation to brick house and weatherboard house. I favour the 4 bedroom house, but need to check if there is a demand for 4 bedroom house, as most houses are 3 bedrooms. But then again, you can say there is a lower supply for 4 bedroom and if the demand exists, it is favorable and unique.

Will keep you all posted with the process.

Catherine

 

[Indifference]

Hang on.... what has your DD told you???

Holy crap... have you not done it??? What do the figures tell you??? What is the rate of return comparison, CG potential comparison, LOCATION, base cost difference, condition, age, etc....

Please, do yourself a favour and do a proper DD... Use search on SS or google if you need. If you have done it properly, I am stunned by your first post.

As for the offers, try a verbal first. Sometimes that is a reasonable starting point from which to go firm on a contract offer with deposit. Get the damn agent to earn their coin.

This is just some friendly banter for you to consider... take it or leave it.

Cheers

 

[BayView]

Also out of interest, would it be easier to rent out a 4 bedroom brickhouse or a 3 bedroom weatherboard house?

Thanks.

Catherine

If the demographic of the renters is such that they require 1 or 2 bed units close to trains/buses/cafes/office building, and there are none of these near your houses, then....no. Neither will be easy to rent.

With houses; most will be required by families, some occasionally by groups of younger people trying to pool their funds.

Therefore, the actual construction won't be too important.

What is important is the floorplan, the condition of the property, and it's location to the amenities your renters need/want.

From a maintenence point of view, you would be safer with brick - less maintenance and painting.

 

[catlib01]

Thanks Indifference and Bayview for your valuable comments. Your comments are very valid. I just want to know where my position is if I made offers on both properties.

I have done the DD and crunch some numbers, I am going to make offer on the 4 bedroom house tomorrow. It was my intention initially to pursuit the 4 bedroom house.

Hopefully, I can get it. I know some other people have made offers before. I will try to suss it out from the real estate agent how much the offers were before making an offer tomorrow.

Catherine