Some insights when buying an asset at the end of the year. As I told in previous posts I purchased in late October ...
Some insights when buying an asset at the end of the year.
As I told in previous posts I purchased 2 properties at the end of October. The empty one about which I expanded an entire discussion and is now a tenant who will enter only two more weeks but on a long contract and with a double security deposit and with that comes the saga of its termination. 3 full months and a few more days that the property stood empty in a relatively sought after area of families. I come back 3 full months… True that in the long run it is not significant but in the immediate term it is not pleasant to say the least. Here I will tell you about the second deal I actually made the other side of the coin.
In the second property I purchased the seller posted at 215-220a and I gave a cash offer of 205a. The seller first went down to 210A and then made an offer that since he was building a house that would be ready not before the end of April, he was willing to live in the house for a number of free months and part of the payment and then agreed to 205 or 210A and left immediately. On the advice of my broker, we agreed on 3 months of free rent (in fact the 3 dead months), although without income, but a reduction in the purchase price and zero costs for me. What's beautiful is that for the next month I get a full price of 1 and the potential for a contract extension since his house is unlikely to be ready in time. To think that if there was an immediate evacuation what a double nightmare winter could be…
So a gold tip that buys an asset at the end of a year instead of being aggressive at the price will look for such a solution of partial rental to the seller. In practice, I also bought the price I wanted, and now I am also making more money from it.
It is not always possible to schedule when to purchase a property and if it is the end of the year, take into account the winter months on the way.
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