Tenant approaching owner to buy property?

[ps0104]

Hi all

I'm a tenant looking to buy my first PPOR. I currently live in a 2 brm apartment in Canberra which I am very fond of. I would quite happily buy it if it was up for sale at the right price. There is nothing to make me beleive that the owner has any intention of selling.

I have been a stable tenant in this property for about 4 years on 12 mth leases and I beleive this stability has resulted in the rent not being increased in 4 years (which is good for me!).

My question is, has anyone ever had a tenant approach them out of the blue who was interested in buying the property? While I know it is possible that the owner will have been considering selling up and it could result in a win win for both of us, if they are not interested in selling, could it also have the adverse affect of giving them the impression I am looking to move and hiking the rent up?

Thoughts?

 

[Rob Williams]

Get someone else to make the offer on your behalf. They don't have to know it's you making the offer.
If they know you're looking to buy, they might just crank up your rent as they may figure they have been a little too soft with increases over the past years.

 

[mattysavager]

Is your unit managed by the owners? I guess it's a PM otherwise you would know the owners quite well.

I don't see a problem in asking if they are interested in selling. I don't necessarily think they would increase the rent, I wouldn't. After all, if you're a good tenant and they think there may be a risk of losing you, then they would likely do what they can to keep you on.

I don't think you have much to lose really, except the possibility that they may try and increase the rent, but you can always negotiate on that.

Just my 2c.

 

[ps0104]

Is your unit managed by the owners? I guess it's a PM otherwise you would know the owners quite well.

I don't see a problem in asking if they are interested in selling. I don't necessarily think they would increase the rent, I wouldn't. After all, if you're a good tenant and they think there may be a risk of losing you, then they would likely do what they can to keep you on.

I don't think you have much to lose really, except the possibility that they may try and increase the rent, but you can always negotiate on that.

Just my 2c.

Correct. It is managed by a PM.

 

[Sheryn]

If any of my tenants made a genuine offer to buy at a reasonable price, I would sell...

a) I would not have to pay REA and marketing costs to sell the property.

b) The timing would be a consideration [contract would have to be signed in July or later so tax payable in next financial year].

Your Landlord may say No but if you don't ask you don't know and as a LL I would rather know that my tenant was asking and making a genuine offer so put it down in writing what you want.


Good Luck
Sheryn


PS
If LL doesn't want to sell then seriously consider buying something else as an IP and keep living where you are.

 

[Belbo]

Wait up!

You haven't had the rent go up in 4 years, and you want to lose this landlord. Are you out of your tiny bloomin' mind?

Shut up, keep renting there as long as you humanly can, buy the next one that comes up for sale in the building, and put its rent up every 6 months!

 

[willair]

Correct. It is managed by a PM.

Well bypass them,just do a title search on the property find out who owns the title,then have a Legal person draw up a contract that on ly falls over if you want it too,good luck..

 

[DaveM]

You would also have to consider the landlords management agreement, I have seen some where the agent is considered to be an introducer should the tenant buy the property from the landlord and would seek a sales commission.