Want to buy the property you're renting?

Thursday 09 Aug 2018

Not a lot of people can manage to have a deposit for the property they want to buy. That’s where rent to own houses comes in. Also, it’s like trying the property first before deciding to finally buy it. The timing may be right for the landlord to get out when a relatively straightforward opportunity such as selling to their tenant presents itself to them. Also, as the tenant you may have a lot of reasons you want to buy the property and it’s a win-win situation to both sides in having a simple but fair deal on the property you’re currently living. You don’t feel the need to do all the research phase, removalist cost and you get to skip the stress in going around the place just to look for the right property. Also, the landlord gets to skip listing the property and dealing with open house inspections and entertaining lots of possible buyers with offers that all might have the same result at the end of the bargain.

The pros of this deal on the landlords end is that there’s no need to look for potential buyers and having to worry about the state and condition of the property by the time it will be transferred to the new owner, since you as the tenant the landlord already trust you in taking care of the property since you already have an emotional investment on the property you made as your home since day one.

Property sale arrangements can be interesting between a tenant and a landlord, but it still should have the same process from other real estate properties, which means not skipping the necessary things such as legal advice and having a real estate agent to assist you both throughout the deal. If a landlord prevents you from having an agent, that’s the time you need be cautious. Being confident about your financial status and plans is always a good idea and should never be missed.

Once you have the idea of buying the property you are renting, you should always consider your finances first and how much you are willing to spend. Inquiring with the landlord and asking for the price is not a good step to start with. By the time that you have already finalised your budget and have a prior financial approval, it’s also a good option to shop around the market and see better options by having comparison to other properties. It’s always a best idea to ask for some advice from people you trust, asking them of what’s the best investment you can have. Never decide just because you want to have a property easily just by buying the one you are renting. Think about all the things you want and need in an investment property and then make sure all are being approved on your checklist. Research is always important once you have decided to invest in a property, there’s just a slight difference on the action you’re making on this part. You ask yourself questions as a possible tenant and not as a buyer. One of the edge of renting is the possibility to live in a place you can’t usually afford to buy, or settling in a neighbourhood that fits your lifestyle at the present time but not for a long time as your needs and wants also changes.

Even if you have already lived in the property and has knowledge in the environment, it’s always good to ask yourself if the place is in a high developing area or asking about the populations of the suburb or the nearby suburbs. Also, if you wanted to rent out the property in the future, you should also think of what are the kinds of tenants who’ll be interested in your property and never missed the part to ask yourself about the traffic, amenities and nearby schools in the property as well.

If you already have a final decision wherein you have securing finance and you’re confident that the property will be a good investment for you, the next step is to ask the landlord if they even want to sell the property. Having a slight knowledge about them will also help you, like if they have other properties or do they own the property you are renting? Is it a family property they are keeping for some personal reasons? When you first inform them about your idea in buying the property, they might be surprised at first, that’s why having a rational approach will convince them that you are sincere in buying their property. Once they show interest in selling their property, instead of discussing the pricing with one another, it’s best to get one or two appraisals for both sides to have an even and practical estimate of a price point to start the negotiation. If the landlord wants to take care of the pricing, you may have a figure that is not ideal for your budget and is more than what you expected for. Also, if you both get different appraisals and yours is lower than the landlord, that will keep the landlord from selling the property.

The last step, once you have an agreed price, you can create a formal offer and it should be in writing to the landlord, this is the part where a real estate agent’s assistance is needed. If you do all the work and then found out that the landlord don’t want to sell the property, don’t be discourage. There are a lot of possible properties to check and you can now be on your possible buyer mode to find a better property than what you currently live in.