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View Full Version : rural property: rent then buy it ?



treacle
13-01-15, 10:00 AM
.... if you rent a property, does a vendor generally give you first dibs on buying it when they finally decide to sell it ?

midnightly
13-01-15, 10:37 AM
No, he usually doesn't. If you're lucky he might mention in passing that he's put his place on the market but he might not either and you won't know anything until the new owners move in and kick you out.

On the other hand he might be a really nice bloke and offer his place to you at a lower price than it's worth. LOL. In yer dreams.

Ask him if he's selling, for the name of the agent, and go from there. He may prefer no agent but most do in spite of their commission because the conveyancing guys then need to do more and they can charge through the roof.

LisaL
13-01-15, 11:05 AM
Everyone wants to get the best price they can for their property and who can blame them. Start saving your deposit - if that means winding back on the spending surely it's worth it.

treacle
13-01-15, 11:54 AM
thankyou for replies

.... what sort of deposit does the brains trust think that someone would want to have to get a property that's on the market for 400k ? - 53k ?

teetee
13-01-15, 12:05 PM
Banks vary a bit in deposit, especially in rural properties they are much more cautious than they used to be, also check what the property is valued at (by a bank) because that will influence whether they will lend to you and how much deposit you need. IME many valuers are useless for rural and equestrian properties if there are no comparable sales in the area since that's pretty much all they seem to do, just a property sales search.

midnightly
13-01-15, 12:30 PM
That's right. If it's zoned "farming" the banks are very cautious. I have reason to believe they are wanting 50% deposit.

Often a reliable mortgage broker is a good idea.

The real estate agent should have a good idea of the bank valuation.

thejoth
13-01-15, 01:21 PM
40% deposit for rural around my part of the world, last time I checked.

which is also minders, so listen to her, 50% yikes!

cyrus
13-01-15, 05:14 PM
Good luck with it. Just save and go for it if you can. Nothing is certain even if they decide to sell, anyone can bump you out.
Hopefully you find a good lender at low deposit.

LisaL
13-01-15, 06:24 PM
What you could do is save $10-$20k and get a loan to buy a unit or house in town. Make that your investment and negative gear. That will get your foot in the door of the housing market. Whack money and rent on that loan and get equity in that investment and then borrow against it for acreage or sell it to buy your acreage. You can buy nice house to rent out in slogan (Brisbane) for less than $300k and the rental return on them is quite good.

You can also get Smartloams or Aussie or some other mortgage broker to meet with you for free and talk to them about options for getting into the housing market.

If you are renting on acreage - mum saved the money for their deposit by buying milking cows, then buying calves to feed on the cows and raising the calves for meat. Other farming types have saved money by buying sheep or cattle, droving them to put the weight on then selling for a profit. Saving money is the most difficult but worthwhile part.

screwloose
13-01-15, 06:30 PM
Whilst they don't need to give you first offer most do. Deposit wise it all depends on the size. Properties under 20acres are normally 20% for no mortgage insurance. You can get a lower deposit if you are willing to pay.... Also look into vendor financing aswell. This might also be an option.
Get yourself a broker and go from there :)

misglen
14-01-15, 12:03 AM
No, he usually doesn't. If you're lucky he might mention in passing that he's put his place on the market but he might not either and you won't know anything until the new owners move in and kick you out.

On the other hand he might be a really nice bloke and offer his place to you at a lower price than it's worth. LOL. In yer dreams.

Ask him if he's selling, for the name of the agent, and go from there. He may prefer no agent but most do in spite of their commission because the conveyancing guys then need to do more and they can charge through the roof.


Have to pull you up on that midnightly, most people who find their own buyer do Not engage an agent. The extra couple of hundred dollars your conveyancer charges to prepare contracts is many thousands less than what an agent would charge on commission