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To Buy or not to Buy

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    To Buy or not to Buy

    We have been renting a house in a small town for the past three years. Our landlord has told us he is planning to sell the house so we have the first opportunity to buy it from him. While we don't know for sure that we will be staying in this town for more than a few more months (if that), I have been thinking about the idea of buying it. The reason is that this town has very few house rentals on the market so I believe that finding a renter would not be an issue. Also, since we have been here for a while, we know the area, the people, and the house itself. I was thinking that I could keep it as a rental property after we leave and I should be able to raise the rent 10-20% from where it is at now. I also have an idea that maybe we could put some work into the house, split it into two separate units (upstairs and downstairs) and be able to increase the total amount of rent by 40-50% of its current amount. However, this idea would have to first be cleared by the town. Also, I would have to look at the cost factor in renovating to create separate units. I am no contractor but at first glance it could be a very expensive project that wouldn't be worth doing.

    Any questions or thoughts are welcome.

    #2
    With the caveat that I'm not a real estate investor and noting that you indicated that you're likely to move out of this town, my initial reaction is that I would not want to be an absentee landlord. If you no longer live in the town, would this require you to hire a management company for the property? And if so, would this consume much of the rent increase that you propose? Also, if you're not "handy", do you have a contractor that you've worked with and trust to be fair with their pricing and provide a quality service?

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      #3
      Those are great points and have been considered. The fact that those concerns are not as great as a couple of others, perhaps I have my answer already... I just found out that town zoning laws might prohibit me from splitting the house into 2 units. This is something that could limit my options. Having said that, it might be wise to look at other properties in this town as possibilities...

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        #4
        Your ideas are excellent. Easy you can get a significant sum of money from this plan. If you are sure that you will find a renter, why not buy the house? Imagine how much money you can get out of this apartment. I know that buying is a little bit hard, but if you ask for the help of a specialist, the process will be much easier. In such a situation will help you a good buyer agent. Why do I say this? Because one of my friends also had a similar situation, many difficulties arose when the buying process began. A company of buyers agents from Sydney helped him with the whole process. Due to them, he saved a lot of time. I recommend you do the same and don't hesitate to buy the house.
        Last edited by alicemorel; 08-30-2021, 03:00 AM.

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