Thank you for all your replies, I realise didn't make it too clear its already sold signed, so no going back and looking at the poll I don't have the "wish could go back and not sign" regret
The tenants are a normal family with 2 kids, new cars, on the annual inspection pictures from RE that are provided to us they seem to have normal furniture tv nothing crazy but not living on mattresses and saving big $.
I don't mean to pry into their life but I am guessing they live on credit like most people these days. Going from a good wage to jobkeeper is a big adjustment to myself so I can imagine it is the same to them, kids are expensive too. Anyway I don't think legally I can pursue them for rent at this time anyway nor I would like to for somebody that is suicidal (benefit of the doubt)
The straw that broke the camels back is really my job loss and bro's wage cut.
Couldn't evict them even if we wanted to at this time
This whole thing also made me realise I don't think I am cut out for the responsibility of being a landlord. Before covid it was pretty straight forward but now it seems fighting for a monetary loss from my pocket may bring a much bigger loss to somebody else even tho I am in the right.
Not sure what the agent told the buyer about current tenants/contract
and what he is obliged to say by law. Pulled the trigger on a loss, paid his fees don't want to know :(
Me and my brother have/had a joint investment property (3 bedroom house in Melbourne south east suburbs).
We bought this place late 2018 for high 600K but with fees stamp duty and some minor touch ups it owes us ~730K. We had a deposit of 80k and at the time I had a ~100k pa job and my brother ~80K.
Place came with tenants on a yearly contract which took care of alot of repayments. We didn't struggle at all and happy to do any/all maintenance requests (which were all minor)
Obviously as covid hit everything lined up against us:
- Just before covid hit we had some damage to the plumbing by tree branches we forked out 6k each 12k combined - no problem we had cash on side for this
- Our tenants both lost their jobs (couple with kids) initially they agreed to pay 80% rent then 60% and then they said they are hardly scraping in, the female apparently had attempted suicide. Really tough situation, I got kids myself there is no way I want to leave some kids without a parent. Haven't pushed for rent last month and got none.
- going from 100k to 1.5k a fortnight taxed is a big drop so we applied for mortgage holidays which are approved but still getting interest added.
- boss told me unofficially a few weeks ago once jobkeeper is over cutting down to skeleton crew and can't afford to have me on, he doesn't mind im looking for new jobs while at work as there is not much to do, but there is no jobs!
- Brother had to take a 30% wage cut.
At this stage we have seen a few professionals for advice and we have been told to sell NOW for anything we can get, things will get worse and apparently the media and rba don't want cause a panic but its alot worse then they say.
Also the bank said for our own good no extension on the 6 month holidays will be given, between the lines they said exactly the same thing the professionals did.
The bank said its already on their record we are on the 6 month deferred mortgage payments and if we default on payments in the future that will be a big black mark on our names for a long time.
Speaking to family and friends, and with deep and long consideration we went to put the place on the market.
RE said no chance we will get what we paid, said start off with 20K discount.
Was no interest dropped by 5K per week at 30K we got alot of tyre kickers and lowballs. No genuine interest, after 4 weeks the best offer we got was 60K then what we paid. The agent said take it, said all sales are like that and his "inside sources" are saying it will get much worse. Once again got other advice and decided to run "before the market crashes"
60k off the price means we are really just over 100K out of pocket, so basically lost our whole deposit and a bit on top.
What else could we do? did the safe thing?
Id rather lose 50k now then 100k later I guess