Possible to rent/take up occupation of property I want to buy while paperwork goes through?

M

MelF

Registered User
Messages
337
I'm about to close on a sale of my house but need temporary accomodation to bridge the gap between moving out and my next house which won't be ready to close/occupy for another 3 months (best-case).
In the meantime I'm sitting on a lot of cash (way too much to be comfortable) and so I'm considering trying to quickly buy a small apartment with some of that cash, partly to offset part of the risk of being in entirely one asset class while I wait to complete the house purchase and also so that I have somewhere to live in the interim instead of paying crazy rent prices.

My plan was to buy an apartment down the line anyway once I'm settled in the new home, but since I'm going to need accomodation I'm trying to set a deal up now so that I could occupy immediately and pay rent to the apartment vendor while waiting for the paperwork to go through and effectively kill two birds with one stone.

Any pitfalls to this approach that I might be overlooking? Financially it's straightforward to do, as I have enough cash to complete on my next house and pay for the apartment outright too (no mortgages involved).
But I'm not sure how I could set up such an offer to the apartment vendor, or whether any legal implications of this strategy that I haven't considered?
 
Finding one would be the first problem, you want to buy an apartment that is empty and the vendor will sell to you with out maximising the price by allowing viewings ? How could the vendor know you're trustworthy ?
 
elcato said:
Finding one would be the first problem, you want to buy an apartment that is empty and the vendor will sell to you with out maximising the price by allowing viewings ? How could the vendor know you're trustworthy ?
Click to expand...
Vendor doesn't need to allow viewings because we will be sale agreed and awaiting paperwork on unconditional contracts. My thinking was maybe offering two months' rent upfront plus a non-refundable rental deposit in the unlikely event that I fail to complete the sale.
 
Doesn't sound like the best way to choose a place to buy as an investment - i.e. in a rush and under pressure.

There are places that specialise in short term lettings of a number of months. You might be better off checking them out. Or even taking a regular 1 year lease and paying it off early if necessary.

And if you have the money literally in cash then, as the previous poster said, stick it in a back immediately for security and peace of mind.
 
MelF said:
I could occupy immediately and pay rent to the apartment vendor while waiting for the paperwork to go through
Click to expand...
So if I understand you correctly, you are looking for an apartment that is up for sale and you'll propose to the vendor that you will pay rent until the conveyancing is completed.

from the vendors point of view - here's the drawbacks as I see them

1. Don't want to get into renting in the first place
2. Will have to register with RTB etc.,
3. Will have to put in tax returns for rental income
4. You might not go through with purchase.
5. You have to be given 3 months notice once you are 3 months in to ensure you leave before the 6 months is up
6. You could overhold and now I have the headache of going through the process of getting you out when all I wanted to do was sell the apartment.

If I were you, I'd put my gear into storage and find a nice friend / relative or house share for 3 months.
 
DannyBoyD said:
So if I understand you correctly, you are looking for an apartment that is up for sale and you'll propose to the vendor that you will pay rent until the conveyancing is completed.
Click to expand...
In the current market anyone selling an apartment is most likely seeking not to be a landlord anymore either......
 
DannyBoyD said:
So if I understand you correctly, you are looking for an apartment that is up for sale and you'll propose to the vendor that you will pay rent until the conveyancing is completed.

from the vendors point of view - here's the drawbacks as I see them

1. Don't want to get into renting in the first place
2. Will have to register with RTB etc.,
3. Will have to put in tax returns for rental income
4. You might not go through with purchase.
5. You have to be given 3 months notice once you are 3 months in to ensure you leave before the 6 months is up
6. You could overhold and now I have the headache of going through the process of getting you out when all I wanted to do was sell the apartment.

If I were you, I'd put my gear into storage and find a nice friend / relative or house share for 3 months.
Click to expand...
I hear ya, it's a sledgehammer to crack a nut approach I know.
 
You must log in or register to reply here.
Back
Top