Speaker 1 0:00

Hello and welcome back to that Honlon Harp . Today I am joined by JB Hello Jordan .

Speaker 2 0:05

Hello .

Speaker 1 0:07

Jordan . Today we are going to talk about

Welcome to That Honlon Harp

Speaker 1 0:10

something very cool and very important to a lot of our clients that are renting right now . Right , what do you have for me ?

Speaker 2 0:18

Well , it's a very interesting time at the moment , isn't it ? With the market , and I feel like , personally , I'm seeing a lot of clients

Tenants Buying Their Rental Properties

Speaker 2 0:25

coming in asking to buy their landlord's property . So their landlords are selling up because maybe they've got a few too many properties on their portfolio . They're trying to downsize , and this has been creating a good opportunity for the tenants sometimes to get their first home , because they're already in the home . It's the home they know , the home they love , and I'm finding a lot of the landlords are offering them for a good price as well , which is awesome . So it makes it a lot easier , as we already know the costs of what it's going to be to live in the property . They've been doing it for years anyway . It's a good point , and even sometimes the landlords are even offering a little bit of help because obviously they want to sell the property , they want to move on . There's different ways that we can .

Speaker 1 1:14

Yeah , absolutely there is , and that's a very exciting opportunity for them , because when they reach out to us , we actually show them how to come up with the extra deposit that they wouldn't have had otherwise with the help of the landlord . So if you are sitting in a rental at the moment and you're thinking , oh , it would be awesome to buy this property , I think you should be confident in reaching out to your landlord and seeing if it is possible for you .

Speaker 2 1:42

Yeah , because obviously with the economy right now there's a little bit more stress on those that have multiple properties . Like I said , just want to downsize a little bit . You may be helping them out quite a bit more than what you think .

Speaker 1 1:53

Yeah , absolutely . I think it's a win-win for all . Like , look , I'm a landlord , I've got a couple of properties and I've got a tenant that's

Pros of Buying Your Rental

Speaker 1 2:06

been in the same house for the last 10 years and she knows that eventually she will buy that property off me when she's ready . And it's my job . I sort of have two hats when I deal with her to get her ready to that point where she can buy . And I think if you don't know , you can't tell . So I think a lot of clients are scared to ask because suddenly we tell them that they're ready and they go oof , I'm ready , I can buy now .

Speaker 2 2:25

And they get surprised .

Speaker 1 2:28

So buying rental property . Let's go into pros and cons . What would be the absolute pro of buying the property that you're in right now ?

Speaker 2 2:36

I would say you know the property , don't you ? You know what flaws it has , especially when you go buy a new property . It's like buying a new car , isn't it like ? There's always a couple little things that are wrong , especially the older they are , and if you already know what they are , that makes their life a lot easier . You can pre-plan going forward . If there's any repairs that you think need to be like , if it's just a , a few um frames and stuff or window frames that you've got to clean up or something you know . Know it's nice and easy compared to you buy a house and then two weeks later you've got four holes in the roof and you're running around with buckets and you're like , oh , this wasn't on the report .

Speaker 1 3:16

Yeah , exactly . So the absolute big pro is you already know the property You've been living in it . You know where the drafts are . You know what's leaking , what's not leaking . Living in it . You know where the drafts are , you know what's leaking , what's not leaking , what's um , you know , and hopefully , if your landlord was a good landlord , it's healthy home compliant you've got good heating there , you've got good um insulation , etc . So you're already buying a property that you know is up to a certain standard and it's home and it's your home exactly .

Speaker 2 3:42

You know , if you've lived there for , let's say , more than a year , you know that's your grand roots , that's where you come home every day , it's where you relax and sometimes being able to buy that is just . It's nice , isn't it ?

Speaker 1 3:55

Yeah , look , I hate moving .

Speaker 2 3:57

Absolutely hate moving .

Speaker 1 3:59

So for me , I think , personally , the pro would be not moving yeah .

Speaker 2 4:02

I think , personally , the pro would be not moving . Yeah , that's a cost that you don't have to like . A lot of people don't think of that cost when they do buy a home as well , which we list beforehand . But you're saving . What a grand . Two grand maybe . Maybe even more yeah like not having to move . That's fantastic , and you can use that to oh for anything . Exactly Right .

Speaker 1 4:24

So that's another pro that we have . The other pro for me would be like , if you already live in that area , you know the area , you know where the kids go to school .

Speaker 2 4:32

If you've got kids .

Speaker 1 4:32

you know you , you probably got that property for a reason because it's maybe closer commute to your work or maybe it's close to the beach or close to the things that you like . So if you're already living in it you probably know the area really well . You know your neighbors , it's all familiar .

Speaker 2 4:48

It's home , it's home Again . We're coming back .

Speaker 1 4:53

It's home . Yeah , so we've got three pros here . Let's talk about cons . What would be the con of buying the property that

Cons to Consider

Speaker 1 5:06

you're in right now and we've got one at the moment that I know you're dealing with and I know that people are absolutely in love with their property because it's home right but , for instance , that house may have potential issues that they probably don't want to be dealing with in the long term .

Speaker 2 5:18

Yeah , that is very true , Like there was a pro being attached to the home and it being your home , but at the same time , sometimes it's hard to step back and see what problems actually are .

Speaker 1 5:30

It's not . It's like being in a toxic relationship but not wanting to leave . Very much so .

Speaker 2 5:37

You stick your head in the ground and try not to notice the things that are a bit skew-iff , or you know the leaks and whatnot .

Speaker 1 5:45

Exactly so . Sometimes you just have to pull the pin . You know , even though it's home , even though you love the area and it's fantastic . I think it's just the matter of really figuring it out whether this con is worth it or not . The other con , I guess , is when you're overpaying for something . As much of it as a pro , as much as the good point to be buying your landlord property because you might get it off the market there is no real estate agent fees involved , et cetera you might get it for cheaper .

Speaker 1 6:21

However , in some cases you might be overpaying because the landlord has a certain um number in their head that they need to sell it for , and because you might be so blindly in love with that , you might buy it for more than what it's worth . In my opinion and I've seen it happen before definitely where people are too in love , they don't want to move and they don't want to have the extra cost , etc . And I guess the con as well is the extra moving cost . You know when you have to move somewhere else you might be shifting regions .

Speaker 1 6:56

You might be shifting towns , shifting schools , shifting schools , getting to know new people , new areas , new neighborhoods .

Speaker 2 7:03

And if you're an introvert like me , I like to be comfortable with the people I know .

Speaker 1 7:08

You want to be comfortable with people , you know . I think at this point people gasp , thinking what ? She's ? An introvert ? I can't be . I can't be . Yeah , I think I'm an introverted extrovert . I've decided over the years yeah , no-transcript .

Speaker 2 7:52

Like you can come to us , we can get you pre-approved , hopefully . And get you pre-approved for a little bit more sometimes is probably the best , like if we can , and then it opens up your

Exploring Your Options

Speaker 2 8:02

opportunity . You can then consider if it's your landlord's property is the one that's going to be the best for you , or maybe something else that's in the area . The thing is , there's so many options . There's so many different ways we can do things . There's a lot out there .

Speaker 1 8:19

Absolutely Awesome , awesome . Thank you so much , jordan . I think this has been a very enlightening podcast , even with Winston's presence here .

Speaker 2 8:28

You just missed me .

Speaker 1 8:32

We have a bring the dog to work day today and Jordan decided to surprise us

Closing Thoughts and Winston's Visit

Speaker 1 8:36

with Winston's visit . So , for those that are wanting to buy and sick of renting because you want to have a dog without your landlord coming at you , come and see us . We'd love to help you on this journey . Thank you , your landlord coming at you , that was a big point for me . Come and see us , we'd love to help you on this journey . Thank you , jordan . Thank you , bye , goodbye .