Today I’m going to tell you a story about what happened to me on Saturday when I went to Christchurch for scheduled property inspections.
At one property the tenant mentioned that he was looking at buying a house. He also mentioned that he was going to ask hubby and I if we wanted to sell him the house he is currently renting. Funny thing is that we were leaning towards selling a property anyway, and this would be the one we would sell!
Prior to this revelation, we had been pondering over the impact that selling the house would have on our very reliable tenant who just happens to have a large, friendly, but scary-looking, dog. We had been dreading having to tell him that we were going to list the property for sale. Where would he live?
So, hopefully, this story has a positive outcome all round and nobody ends up homeless!
The funny thing is that I am finding myself advising our tenant to take his time to research the value of the house and not to make any hasty decisions. Buying a house is a big decision. I’m torn between being the vendor and offering the knowledge and experience that we have gained over the years. I don’t think it is too much of a conflict of interest though, because I’m teaching him some valuation skills so that we can better come to a price between us. It’ll hopefully be a win-win with nobody being ripped off.
The decision to sell a property that you have had for over 12 years is a biggie. Many property investment books tell you to never sell an asset, because once it is gone, you lose any future potential capital gain and rental income. So, why are we selling this house?
I suppose partly because it was the hubby and I’s first home together, we are a bit emotionally attached to the house. It is heart-breaking to watch your first home accumulate wear and tear but not being local to be able to remedy the paintwork in between tenancies.
Even with generating a good rental income, the house is of character style, so getting replacement parts in keeping with this character is expensive and difficult, and as a rental, it’s simply not cost effective.
As it turns out, the potential new owner works in the demolition industry and regularly comes across bits and pieces of the right era. He also has friends in the building trade to help him out with maintenance and renovation.
I am feeling hopeful that this could be a win-win-win, for the house, the tenant, and us!