With the recent changes to tax regulations coming in July 2024, many landlords are considering selling their investment properties. For tenants, this shift presents a unique opportunity to transition from renters to homeowners. In this blog post, we'll explore why purchasing the property you currently rent might be a strategic and financially savvy option.
The Opportunity:
As a tenant, you have firsthand knowledge and experience of the property, which puts you in a great position if you're considering buying it. Not only does purchasing your rented home mean you won't have to relocate, but it also offers financial benefits such as avoiding hefty real estate agent fees, which can range from $20,000 to $50,000 depending on the property's value.
The Process:
Approaching your landlord about buying the property can initiate a private sale process, potentially saving costs for both parties. It's important to agree on a fair market value, which might even include a discount to reflect the absence of agent fees. Before finalizing the sale, obtaining a registered valuation is crucial to ensure the price reflects the property's true market value, satisfying both parties and bank requirements.
Why Consider This Option?
Stability and Security: Buying the home you currently rent provides long-term security and eliminates the need for future moves.
Cost Savings: By skipping real estate agent fees, you can either save money or invest more into your new home.
Familiarity: As you already live in the property, you are aware of its condition and surroundings, reducing the chances of unexpected issues.
Getting Started:
If you have a deposit and are considering this option, speaking to your landlord could be your first step towards homeownership. At My Mortgage, we are here to help you understand your options, provide financial advice, and get you preapproved.
Purchasing your rented home can be a win-win for both tenant and landlord in today's market. If you're interested in exploring this option, reach out to us at My Mortgage. Our team is ready to assist you in making a smooth transition from tenant to homeowner.