How to go about purchasing the property you’re renting

Are you a renter looking to jump on the property bandwagon, but already love the home you’re in?

It’s not uncommon for tenants to fall in love with their rental home and make an offer to their landlord through their property agent, even if the property isn’t currently up for sale.

Purchasing your current rental home has a number of advantages, with the major one being that you already know all the ins and outs of the property so there’s unlikely to be any nasty surprises later on.

There’s also the added bonus of not needing to move out or trying to work out a good time to break the lease, which you would have to do if you purchased elsewhere.

Before you reach out

Before starting the conversation about purchasing your rental you’re going to want to do some research.

Find out what similar properties in your area are selling for and try to come up with what you consider to be a fair market price for your rental property.

Don’t forget to also make yourself aware of any fees or costs involved with purchasing a property, so you don’t end up with unplanned expenses after you’ve already made an offer.

Be prepared to negotiate

Once you’re armed with knowledge about your local property market and the buying process as a whole, it’s time to reach out to your landlord.

The best way to do this is probably going to be through your property manager. You may just want to initially ask your landlord if they have any interest in selling, but if you offer up a price upfront as well they may be more willing to discuss further.

It’s possible that your landlord was already looking to sell, but seeing as the property is an investment they are going to want a decent return on it and there’s a good chance there will be some negotiation on price before both parties can come to an agreement.

If an informal agreement is reached then you will want to bring in a conveyancer or solicitor to draw up a formal offer for you. Your real estate agent will also be able to step in and assist you here on what steps need to be taken.

Keep in mind it’s also still a good idea to get a building and pest inspection carried out before you make your purchase, because even though you are already living at the property there may be issues that you’re unaware of.

The answer could be no…

There will be a lot of cases too where the landlord simply isn’t interested in selling. It may be disheartening, but if you really like the property and don’t want to leave then becoming a ‘rentvester’ and staying at the property while purchasing elsewhere may be an option for you.

Plus, you never know, the property may come up for sale at some stage in the future so it’s a good idea to stay on top of what’s happening in your local market so you’re ready to make a move if it does.