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Purchase of old property- rent then buy- good or bad idea?

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  • Purchase of old property- rent then buy- good or bad idea?

    Hi Guys

    I have posted this in the rental section, but my question here is directed to those with knowledge of purchasing a house.

    My self and my wife are about to start renting a property that is in need of serious modernisation.It needs a kitchen, bathroom and some minor structural work, and completly redecorated.

    The house is owned by an old lady who is in a nursing home, and she has given her neice and nephew permission to sell the property, but it has been on the market for a year, so they placed it for rent.

    If we were to rent the property,and spend our time and money making it into a home, how can we make sure that they do not put us out or drastically increase the rent.

    Also how do we insure that they sell it to us...the lady is in a nursing home, so the goverment could force her to sell it to cover costs, or she could die, and leave it to a load of people who, one of which might want to sell it.

    How do we do this so that it is fair to all involved, but most importantly, so that we do not spend a small forture renovating a property and then end up with nothing?

    Any and all advice is appreciated.

    Thanks

    Brian

  • #2
    If you don't own the property and are simply renting, then any modifications you make to modernise the property will only benefit the landlord. Really, you shouldn't even consider making such improvements, but instead let the onus be on the landlord to make such modifications at their own cost. If you renovate at your cost, you are giving the landlord money.

    Personally I'd recommend you offer to buy the property, and if they won't, offer to rent on condition that the landlord modernises.

    I've seen too many instances of people renting, doing up the place, only to be then forced to move with nothing to show for it.

    2c.

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    • #3
      yep

      Hi Brian, thank you for the advice.

      I think we will do just that, rent the property, for as little as possible and use the time there to build our credit and to save some money.

      Thanks for the advice.

      Brian

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      • #4
        Originally posted by bubbleberry View Post
        Hi Brian, thank you for the advice.

        I think we will do just that, rent the property, for as little as possible and use the time there to build our credit and to save some money.

        Thanks for the advice.

        Brian
        You can take a legal 'Option' to purchase the property at a date in the future at a set price, you need to ensure that the option states that the owner is legally oblidged to sell you the property but the you are not legally oblidged to purchase it. This will cover you both ways. In a declining market you need to offer very low and renovate quickly.

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