the right place
It’s the news that every renter dreads. Well-settled into a place that feels like home, familiar with all the best bars and cafes in the neighbourhood, you’re told the landlord wants to sell. All of a sudden, the realisation dawns that your home in fact belongs to someone else.
The question then becomes what happens next. Do you pack up and find a new abode? Sit tight and hope that another investor buys and you and all your belongings can stay put? Or do you put your dollars where your heart is and make the home your own?
Joe Ranallo and his partner Hannah Finnigan-Walsh opted for the latter, inking their names on the title deeds of the Marrick & Co apartment they had lived in for two years.
It was a step into home ownership that they had contemplated but until that moment not felt the urgency to do anything about, until they faced the prospect of losing their perfect Marrickville home in Sydney’s inner-west.
What surprised them was how simple the process of changing their status from renter to owner was. They had been renting through Real Estate Services (RES) by Mirvac who were also engaged by the owner to sell the property. When Joe and Hannah were notified of the impending sale they quizzed the agent about the owner’s intentions. Two weeks later the apartment was theirs.
“Because the building is so well-known and there are a lot of apartments which are the same as ours it was easy to get a sense of what they were selling for,” says Joe, who works in advertising.
“We were negotiating within a range of $20,000 give or take and had agreed on a price within a day. The whole process, from speaking to the agent and expressing interest in buying to finalising was about two weeks.”
The advantages of negotiating an off market sale to an existing tenant fall on both sides of the transaction. For the landlord there are no marketing costs or loss of income if a tenant should choose to vacate. For Joe and Hannah, they acquired their first home without the stress of an auction, the cost and inconvenience of a house move and after two years living in their apartment, they knew exactly what they were buying.
The ease of the transaction stands in stark contrast to the experience of Joe’s work partner who bought his home after a cursory open house inspection.
“When he bought his place, he’d been in it only once. He was taking out a life-changing loan for a place he hopes he likes as much as he remembers it. We were lucky that we had two years to become familiar with the property and knew exactly what we were buying.”
Matthew Matthews, RES by Mirvac Managing Director, says being able to transition tenants from renting to home ownership is the ultimate outcome that benefits both parties.
“It is fantastic when it happens,” says Mr Matthews. “The owners are happy, tenants are happy and it’s a big tick for the community because you know the tenant likes living there.
“When an owner decides to sell, it’s just good business practice, rather than company policy, to ask the tenant if they want to buy.”
“People can come in at a softer level and it becomes a gateway for those who had lost interest to find their way back in. And it’s a way to get to know people.”
The strength of community bonds at The Fabric validates the care Mirvac has taken to build inviting shared spaces and provide support through a Community Development program, says Elysa Anderson, Mirvac’s General Manager Residential – VIC and WA.
“In the initial stages residents were drawn to the masterplan and design but increasingly as people have moved in and the shared spaces have come to life, it’s the sense of community that resonates,” says Ms Anderson.
“With each new stage we’ve added to the resident amenity with playgrounds, parks and green space which has broadened its appeal to families, working couples of all ages and downsizers.
“The Cook’s Patch with its vegetable plots and kitchen inside the community space has been hugely successful for holding birthday parties and special celebration events.
“We continually work with residents to find new ways to activate the space, lending support when it’s needed.”
‘We were lucky that
we had two years to
become familiar with
the property and
knew exactly what
we were buying.’
‘The whole process,
from speaking to the agent
and expressing interest in
buying to finalising was
about two weeks.'
JOE RANALLO
Marrick & Co purchaser
When RES by Mirvac was established 12 years ago, its primary purpose was to offer a premium property management and leasing service, fulfilling one of the Mirvac pillars, to look after customers beyond the contract.
Over time, owner-occupiers and landlords turned to the agency to sell their property, appreciative of the high level of customer care and the results that have been achieved.
In hot property markets like Marrickville, in Sydney’s inner-west, the default sales method is to go to auction to tease out the highest price. It’s not a strategy that RES by Mirvac favours, preferring to sell by private treaty with an advertised price that is a genuine and accurate guide.
“Because we sell and manage only Mirvac properties we know within a price range of $10-$20,000 what the price is,” says Mr Matthews. “We rarely auction; there’s no upside and potential for the auction to go against you.
“The tenant still has to go through the disruption of open homes and bidding at auction, and the owner bears the marketing costs. An off-market sale at a price that leaves both vendor and purchaser happy aligns much better with our purpose, and that is to take care of Mirvac customers."
'Being able to transition tenants from renting to home ownership is the ultimate outcome that benefits both parties.’
MATTHEW MATTHEWS
Managing Director
Real Estate Services by Mirvac
Adam is another tenant who bought the “One of our recent resales at Mirvac’s two bedroom Mirvac apartment he’d been renting at Yarra’s Edge rather than leave a place that ticked every box for work, recreation and lifestyle.
“I had notification that the landlord wanted to renegotiate the lease which I was happy to do,” says Adam. “But two weeks later I had another call telling me the owner had decided to sell and was I interested in buying.
“I’ve been happy here the entire time I’ve lived here since 2020 so I had a chat to my bank and it all came together nicely. It was a very smooth process and it removes the uncertainty of renting.”
Adam already owns an investment property and there was only a small increase in his mortgage repayments above what he was paying in rent. He hadn’t been actively looking for a second property but has no regrets.
“It feels different owning the place. I don’t know what it is but it is probably a sense of relief. It feels really good to know that I own this place. I like the convenience; I walk to work and everything in my life is within touching distance or a short distance away.”
Both Adam and Joe and Hannah had the advantage of test driving their home before buying even if that was not the intention. Mr Matthews says some deliberately adopt the rent first buy later strategy before making a big financial commitment.
The Eastbourne in East Melbourne was to a professional woman who was downsizing from a house and wanted to see if she enjoyed living in an apartment,” says Mr Matthews.
“She chose The Eastbourne to rent because it was a place she thought she would like to buy, if it passed the test. A year into her rental she knew she’d found her perfect home but it took another 18 months before we had a suitable apartment for her to purchase.
“Prestige apartments like The Eastbourne with its great location and resident amenities are tightly held and highly sought after.”
For many there’s an argument in favour of renting over buying but that ignores the emotional impact of being in control of your own destiny. The moment they took ownership of their Marrick & Co apartment, Joe and Hannah changed the locks and hung pictures on the walls – with hooks. But does it feel different when you own your home?
“The main difference is that a small part of me looks forward to the monthly mortgage payment,” says Joe. “When you’re paying rent and transferring out X dollars a week, the money is just gone. At least now, owning the place, every time I have to make that payment I can say, yes, my mortgage is slightly less. It feels like the money is going back to me.”
*The article is intended as a guide only to provide general information. Mirvac is not a provider of financial or investment advice and this information should not be relied on as such. Before acting on any information in this publication, purchasers should fully consider the appropriateness of the information, having regard to their objectives, and financial and tax situation and needs, and seek their own advice from appropriately qualified advisers. Mirvac has made all reasonable efforts and inquiries it believes necessary in preparing the publication but is not responsible for confirming the completeness or accuracy of such data and information. Purchasers must rely on their own continuing enquiries about purchasing decisions. Mirvac expressly excludes any and all liability relating to, or resulting from, the use of or reliance on, any information contained in this brochure by any person.
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