Rent to Buy

WHAT !

Look - I wont be able to make it by 12, Cant you make a special delivery this time. I'll pay an extra $10 if you get it to me by 12:30. :D

How many of your clients will pay that much for delivery ?
 
My apologies. I didn't see that post until too late.

The sub was waiting for you, we've had to throw it out. I still require payment however ;)

Is this what is known as getting off topic? Time to report this thread to the mods...
 
If he's on 6 figures, and she looking for work, so income isn't a problem ... why not just rent it to them for 6-12 months (or so) AT MARKET RATES for them to build up a deposit and get some employment history - and separately - both parties sign a contract giving them first right of option/refusal to buy AT MARKET RATE at the end of that period.

Saves a whole lot of headaches and means you're not bound by an old price, if the market moves up.

Also means if they like it, they can buy - if they don't like it, they can move on without skin of anyone's nose.
 
Sounds like a Lease/Option to me ;-) All you'd have to do is make the mechanism for estimating the Market Values, at the end of the term, very clear. Possibly the average of two or three valuations or similar. I'm sure a good solicitor could work up a clear, non ambiguous procedure.

Cheers, Paul
 
Hey Pedro61, I'm based in Canberra and tried to do this 12 months ago (as the Tenant/Buyer. I wanted to rent for 12 months as my wife and I had just had baby number three (2 kids under 2) and didn't want the mortgage until she was off Mat Leave. The challenge we had was that under the new credit code no bank was prepared to offer approved finance for a purchase with a settlement of greater than 6 months (unless it was a new construction).

We were offering above market rent and affordability was not an issue - it came down to the banks and what they were prepared to support. In the end we ended up renting the property at full market value and the owner has agreed to come to us as a first right of refusal at the end of our lease to make an offer to purchase.

Be wary of IT guys making a motza in Canberra too - while they look like they can afford to buy anything, a lot of the time they are on short term contracts with no guarantee of extension.

The vacancy rate in Canberra is very low for rentals so the average rental is quite high - I'm surprised you haven't had more interest. I run a Property Management business based in Canberra and there is strong demand for rental properties at the moment and most tenants are offering more (not less) rent to secure a property. If you need assistance renting the property out we'd be more than happy to help out. Feel free to Private Message me if you want to get in touch.

Cheers
 
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