Negotiating the purchase of your investment property.
It is quite natural to be excited about making an offer to purchase a property for investment, however you only get one opportunity to include clauses in the sales contract that could be highly beneficial to you. The more delays you experience after settlement, the more financial loss you will incur so we highly recommend you slow down the process and consider what the best outcome will be once the contract is signed.
You may consider:
- Requesting a clause in the contract to allow access to the property for 3-4 weeks prior to settlement allowing the opportunity to introduce prospective renters. This will allow you to secure a suitable renter soon after settlement ensuring your vacancy period is kept to a minimum.
- Requesting a clause to conduct your electrical and gas safety checks prior to settlement whilst the property is still connected to the services, therefore, providing time to plan for any required works that are detected during the safety check inspections.
- Should the property require upgrading or renovating, request a clause allowing access to tradespeople for quotations and guidance to prepare the property for the rental market.
Everything is negotiable until the contract is agreed and signed by both parties, so if your requests are not manageable for the Vendor they should provide a counter-response for your consideration. You can then make viable decisions and/or plan for the potential vacancy period after settlement. Remember – if you don’t ask for anything, you don’t get anything back!
Some further things to consider:
- Investigate insurance options and select a policy that provides adequate coverage for damages and potential loss of rental income
- Arrange tradespeople and schedule in works as soon as settlement occurs to minimise delays in having your property rented.
- Interview and select your trusted Property Manager and Property Management Department. Don’t assume the agency you purchased the property from will provide the best property management service!
If you would like further information please reach out to the team at OBrien Real Estate Ringwood on for an obligation-free discussion.
Wishing you good luck and good fortune with purchasing your investment property!
OBrien Real Estate Ringwood
9879 6335
christine.turner@obre.com.au
