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It was thought when the GFC arrived that a lot of rent rolls would come on the market for sale.  The feeling was that some agents may come under financial pressure and decide that they need to sell the whole or part of their rent rolls.

The reality was quite different.  The GFC seemed not to last for very long and the general property market recovered and it was relatively easy for agents to sell property which of course increased their commission income and there was no real financial pressure.

Over rent times, sales have been more difficult to achieve and if the forecasts that you read in the media are correct, the number of sales that will be achieved in the next year will be markedly down and there would be downward pressure on prices.  If these predictions turn out to be correct, then the sales activity in real estate offices will be quite depressed and that may put some agents under financial pressure having them consider whether they should or have to sell whole or part of their rent rolls.

If you are in the market to purchase rent rolls, then you may be able to get a bargain, but only if you are organised.  By organised, I mean you have your finance in place and a standard contract that you would use to purchase a rent roll.  If you have your finance in place and a standard contract that you use, then there is no reason why you should not be able to conclude negotiations and achieve a settlement of your purchase within a few weeks.  The way this would work in practice, is that if you found a rent roll that you wished to purchase, you would have some discussions with the Vendor as to the commercial terms and at the same time provide your standard form purchase agreement and advise the Vendor you would be able to settle within say 14 days of exchange of contracts.  A quick settlement is very attractive to a Vendor who is under pressure and often is possible to obtain substantial discount to the market price.

If you require any assistance regarding developing a standard form contract or financing your purchase of a rent roll, please do not hesitate to contact John Turnbull or Savvas Apostolou of our office.

Author: John Turnbull

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