Owner Occupier Contracts??? Whats the go

[DRUSS]

Hi Guys,

Ive come across a property that I am interested in (have not inspected yet) and I am curious to know what exactly they mean by 'Owner Occupier Only' as part of the contract.

Does anyone have any experience with these.

Obviously they are saying its not for an investor.

Why do they do these contracts?

How long is the 'owner occupier' period normally for? Surely it is only for 6months or so.

I am interested in living in the property for 6months while renovating then renting it out after that period.

And to state the obvious, yes I will be going to sit down with the agent and go over the contract soon to fully understand the terms and conditions. I purely want some advice before I go see him and see if I have any grounds to negotiate the terms and cond of the contract.

Any help appreciated,

Cheers

Daniel

 

[Dazz]

It may be Company Title...or "purple" title.

The shareholders of the company can dictate no tenants.

 

[DRUSS]

The property is a 3brm house on single title?

Would the above still apply?

 

[Dazz]

No it would not.

 

[Ausprop]

weird. be sure to update us when you find out

 

[redlake2]

Neighbourly Predjudice?

I have heard of people selling property where the land has been sub-divided and restrictions can be placed such as 'new building must not be two stories'. This can be legally enforceable by the local council. But I cannot see how the restriction of 'must be owner occupied' can be stipulated. Unless you are using your first home owners bonus to buy it.

If it is a single property and not strata and not purple title then I reckon that the seller might also be a neighbour and doesn't want to have 'rental' neighbours. They don't have the right for this stipulation. As long as the council allow tenanted properties in the area then they legally can't do anything about it.

But in saying that, it might be a preference of the seller to get the agent to 'quiz' the buyer in which case because you are living in it you simply say 'yes i will be living in it'. I don't know how the law stands with sellers 'discriminating' against who the offer comes from. I know that if you offer the buying price they are not legally allowed to reject the offer but I think that they can reject offers on other grounds.

They don't know that you might change your mind on living in the property and decide to become an investor in 6 months or so. You never can tell what the future might hold.

 

[DRUSS]

thanks for the reply guys.

The property may even be an ex-comission house from the government as its in that kind of neighborhood.

The price looks to be about 10% cheaper then others of its kind aswell.

I'll find out in a couple of weeks and let everyone know how it went.

Cheers

Daniel

 

[LynnH]

I've heard of properties which have 'Investors Only' clauses - my brother bought a property which was leased to a Government Department for disabled housing. And I've also heard of places like some 'Over 55s' retirement villages which are restricted to OOs.

It will be interesting to hear what the outcome of your enquiries is, Daniel.

Cheers
LynnH

 

[DRUSS]

Hi All,

Well Ive talked with the REA and they advised me that the house was a Commission House from the Dept of Housing. They had put a clause in the contract that it could not be leased out for 7years....wow.

The REA also had no idea why they would do this. The house is now sold anyway. It went for $147,000. Its possible rent would of been 230-250 once renovated.

It did however have termite problems.

Cheers

Daniel