Howick Home and income investment

[Frogrock]

Hello everyone

On trademe.co.nz under auction Classified Number: 111268661 I have tonight just listed one of our investment properties which I intend to sell myself as I have successfully done before.

However this will be the first time I have sold a tenanted property by myself.
Obviously I do not want to upset the tenants or lose them if I can help it and I would prefer to sell to a fellow investor rather than a home owner.

Has anyone been in this situation before and do they have any tips? I am getting a valuation completed on the property and that will be my asking price but I have a 2006 valuation included on the listing.

Of course I am also posting here to alert you all to the fact that a fully tenanted, trouble free investment is now available for your inspection
My property manager who has looked after it for years along with our other properties is a real gem and I hope to include him in the sale LOL

WHY am I selling? I am selling so that I can almost freehold another Home and Income property that we own so that the crock of Gold of passive income will be that much closer.

A motivation that I am sure you all understand!

[Glen]

Hi Frogrock,

Why would it matter who the buyer is.......as long as it sells.
Either way (selling to the buyer for PPOR, or investment), then early and clear communication with the tenants is required.

You could let them know when you visit to take photos for the TM ad.

http://www.trademe.co.nz/Browse/Listing.aspx?id=111268661

I bet theres a healthy difference on the valuation, since Feb '06.
Good luck!

[xris]

Hello frogrock,

Quote on Trademe ad:

The tenants have not yet been informed so no Viewing is possible yet.

Oh dear.

xris

[Monid]

As Xris is trying to point out Frogrock, you need to inform your tenants that the property is being put on the market, before it goes on the market, not at some later point... I'd contemplate pulling the ad, or at least editing that out and informing the tenants immediately. I don't know what the legal ramifications could be but my guess is not pretty if the tenants choose to make a fuss, Xris or Keys any thoughts?

Cheers
David

[Frogrock]

Thanks for the replies guys.

My property manager will inform them tomorrow as i e-mailed him tonight.
I haven't given the street number or a photo in order to prevent drivers by.
I will only provide more info once the tenants have been informed.
In my e-mail to my Property manager I asked him what i need to do re the tenants in order to keep everything up front and by the board.

No one will be given the location of the house or allowed to view it until things have been sorted with the tenants.
I have asked my manager to ask them to allow me to take photos of the inside. I realise that the tenants have the right to limit entry to their homes and that I may only be allowed to show purchasers once a week or less

Could it be worse than that?
I admit I was keen to get it listed on the weekend while I am not so busy running my business. Hope i won't get in too much trouble.

[Frogrock]

I have removed the bit about the tenants not being informed

thank you for pointing that out.

[Frogrock]

Hi Glen

Hi Frogrock,

Why would it matter who the buyer is.......as long as it sells.

It just seems simpler and less messy to sell to an investor as they will look at the numbers, the location, the quality of the tenants, the condition of the property etc and make a non emotional decision and there will be no waiting times for giving tenant's notice etc or waiting for fixed term tenancies to run out.

Home buyers however want to fall in LOVE with the place and may not see past the tenant's lack of minimalist decor!

[cube]

no waiting times for giving tenant's notice etc or waiting for fixed term tenancies to run out.

If the investor prudently asks for vacant possession, then you still have to give the tenants 6 weeks notice.

If the tenants are on a fixed term, then you'd have to hope that someone who wants it as a PPOR is patient enough to wait however long it takes for the agreement to run its course.

You really should have spoken to your property manager before advertising the property for sale.

cube

[Frogrock]

True Cube

The tenant's now have been hand delivered official notification and my manager has informed them of their rights in this situation.

They are allowing me to take photos on Thur so I can minimise disruption by only asking to show thru those who are definately interested after seeing the photos and the numbers and the property from the outside.

I see no problem with the property being tenanted with a fixed term that expires in Sept.

I think that agents promote empty investment properties to sellers as it quickly turns them into very motivated sellers due to the loss of the rental income.

Time will tell

[Frogrock]

Update from Frog Rock

Well, guess what, I countersigned a conditional offer today ( Tuesday )after placing my ad late Sunday night on trademe.

It is a fellow investor so the tenats will be vey happy.

I highly recommend Trademe as a place to sell your properties without an agent.

[xris]

Well, guess what, I countersigned a conditional offer today ( Tuesday )after placing my ad late Sunday night on trademe.

It is a fellow investor so the tenats will be vey happy.

I highly recommend Trademe as a place to sell your properties without an agent.

You haven't sold it yet.

xris

[Frogrock]

My you are are cheerful chap.

of course i haven't as it is conditional but you have to admit that getting a written offer so quickly is pretty impressive.

But then again judging by your avtar you may be too pessimistic to be impressed LOL

[Josko]

But then again judging by your avtar you may be too pessimistic to be impressed LOL

You wouldn't judge that if you saw the rest of the car he is driving...

[whitt]

Yep watch out for Xris's car.

Good news you have an offer.
He does have a point though. Don't stop marketting property and I hope you got a cash out clause in case you need it.

[Frogrock]

I am still marketing the property of course

it is very likely that it will go thru but I am taking photos for my TM listing tomorrow and am keeping in full communication with everyone else wou has contacted me and will show them thru the proprty as soon as I can.

I was offered a fair price so I am not interested in a cash out clause. I don't think that it is fair to drop one buyer like a hot potato if another better offer comes along.

If they don't go unconditional then the other offer has a shot otherwise too bad, first in first served.