Hi,
I came across this property from REIV site:
http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1564632_S.html
It is something new to me, i.e. the property come with long lease from Housing Commission. What I know about Housing Commission are usually those tall Housing Commission Flats, which I believe are owned by government. I didn't know that Housing Commission lease property from private investors and then sub-lease it out?
Would appreciate if anyone can share their experience with me.
My questions are:
- presumably I (as landlord) will enter into lease agreement with Housing Commission, and they in turn will find tenants?
- this means I don't have control as who is the tenant?
- also means that even if the property is vacant, changes in tenants etc, I still got my rent income?
- presumably the rental will be below market rate?
- presumably the surrounding houses are also being leased to Housing Commission? is there a way to find out ?
- presumably at the end of lease term, if Housing Commission wants to extend the lease, I don't have the choice to say No?
-usually how long is the lease term?
- looks like if I want to sell it, I can sell at the open market like what the current owner do, but with the same restrictions that it must be leased to Housing Commission. Would it impact its capital growth, i.e. will it has lesser capital growth opportunity/ less attractive for investors? It seems that this is an old listings, so wondering if it may be hard to sell subsequently?
- any other thoughts/ comments?
Thanks
I came across this property from REIV site:
http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1564632_S.html
It is something new to me, i.e. the property come with long lease from Housing Commission. What I know about Housing Commission are usually those tall Housing Commission Flats, which I believe are owned by government. I didn't know that Housing Commission lease property from private investors and then sub-lease it out?
Would appreciate if anyone can share their experience with me.
My questions are:
- presumably I (as landlord) will enter into lease agreement with Housing Commission, and they in turn will find tenants?
- this means I don't have control as who is the tenant?
- also means that even if the property is vacant, changes in tenants etc, I still got my rent income?
- presumably the rental will be below market rate?
- presumably the surrounding houses are also being leased to Housing Commission? is there a way to find out ?
- presumably at the end of lease term, if Housing Commission wants to extend the lease, I don't have the choice to say No?
-usually how long is the lease term?
- looks like if I want to sell it, I can sell at the open market like what the current owner do, but with the same restrictions that it must be leased to Housing Commission. Would it impact its capital growth, i.e. will it has lesser capital growth opportunity/ less attractive for investors? It seems that this is an old listings, so wondering if it may be hard to sell subsequently?
- any other thoughts/ comments?
Thanks