Sell townhouse & then rent back...what are the chances?

[littletee]

Hi All,

Need your opinion.

Has anyone ever sold your property and then rented it back off the new owner for a fixed period of time like 6 or 12 months......if so was it easy to find someone who was up for it etc?

My situation is I live in our PPOR which is a very nice 2 year old townhouse in Ardeer (pocket in Sunshine) which we love and is pretty much brand new and top quality.

At the same time we are building our new PPOR in another area but in order to help with finance I'm thinking of selling our current PPOR to someone who will hopefully like to buy it but isn't in a rush to move (think a couple getting married or an investor etc) and then rent it back from for $1500 (market rate) until say the end of this calendar year or 31 Jan 2016. The townhouse is worth somewhere b/w 370-400k so the $1500 per month will likely cover the fall interest I believe or very close to it.

What do you guys think of the above strategy, what are my chances of finding someone who'd be up with the above, ie letting us rent it back off them?

Thanks

 

[DaveM]

Dont see why not so long as the yield makes it of interest to an investor

 

[littletee]

Dont see why not so long as the yield makes it of interest to an investor

Hopefully Dave, I think it's a decent offer but hope to find someone who's looking for what I'm selling etc. Thanks

 

[fusion9]

I've recently seen a few 'investor only' sales recently. Or By negotiation for the very reason you describe.
Without luck, they'd likely expect an incentive of a slightly lower price also.

 

[marg4000]

Or you could sell with a longer contract period. Obviously this would be reflected in the price.

Our son bought a home at an excellent price with a settlement period of 5 months or a date to be mutually agreed. The vendor was building a new home so this saved the expense and inconvenience of a double move. Our son was keeping his existing house as an IP so the actual moving date was not an issue for him.

All went well.
Marg.

 

[littletee]

Or you could sell with a longer contract period. Obviously this would be reflected in the price.

Our son bought a home at an excellent price with a settlement period of 5 months or a date to be mutually agreed. The vendor was building a new home so this saved the expense and inconvenience of a double move. Our son was keeping his existing house as an IP so the actual moving date was not an issue for him.

All went well.
Marg.

Thanks guys for the feedback, really excited now to put it on the market and see how it goes. Just waiting for a couple more things to be complete and then will test the market with my strategy above and hopefully it works out.

 

[noobhomebuyer]

In this case, would you let the RE agent beforehand that you are planning this arrangement (only investors)? Is there good reasons as to whether you would or not to tell the RE agent.

 

[littletee]

In this case, would you let the RE agent beforehand that you are planning this arrangement (only investors)? Is there good reasons as to whether you would or not to tell the RE agent.

I'm selling it myself noob. Thanks

 

[Scott No Mates]

I'm selling it myself noob. Thanks

Is that wise?

Selling a recently construced property doesn't always result in achieving a higher sales amount as any capital growth has been chewed up by the developer's profit so resales are often below what you have paid. Can you handle that?

Selling without an agent can restrict the buyers who want to dealthrough an agent & are put off by dealing direct. (some buyers prefer to cut out the bs and deal with the decision makers ).

Selling what would be an IP restricts the pool of buyers as you're restricted to dealing with investors only and owner occupiers would be subject to the property being liable for cgt.

 

[littletee]

Is that wise?

Selling a recently construced property doesn't always result in achieving a higher sales amount as any capital growth has been chewed up by the developer's profit so resales are often below what you have paid. Can you handle that?

Selling without an agent can restrict the buyers who want to dealthrough an agent & are put off by dealing direct. (some buyers prefer to cut out the bs and deal with the decision makers ).

Selling what would be an IP restricts the pool of buyers as you're restricted to dealing with investors only and owner occupiers would be subject to the property being liable for cgt.

I was the developer Scott and sold 2 out of the other 3 units for top dollar that no Agent I believe would of improved on or if they did, not enough to cover their commission which would of meant I came out on top.

Pretty confident in my strategy, I'll back myself in