Rental Property with 5 year lease

[shooting star]

Hi all

I have a rental property in New Farm Brisbane.

$600K house fully refurbed small queenslander about 100 years old. Immaculate condition. Fully airconditioned. Fully secured. Landscaped gardens. Close to everything.

Seller will probably accept offers from $550K and up.

New Farm increased 25% last year and is only 1-2 k from Brisbane CBD.

Rental in area usally about $350 per week for a house.

Tenant willing to pay double that and sign a 5 year lease if they can find a buyer for the property. Tenant will also pay rent 6-12 months in advance.

Tenant wants to live in house - but does not want to buy it.

If anyone is interested please let me know urgently.

House will go on market on Saturday.


Anyone interested.

Let me know.

Thanks


Shooting Star

 

[PIppety]

Kate,

Why would they want to pay double the market rent ??

PIppety

 

[shooting star]

Double the Market Rent

There are a few reasons why they want to pay double the market rent

1. the tenant really wants to live in this house and wants to provide an incentive for someone to buy it and rent it to them.

2. the tenant also will ask the purchaser if they can furnish the home and provide various other incentives which will be paid by the extra rent.

3. The tenant will also ask the purchaser to provide the tenant with a 30% draw down on any capital growth over an agreed value 5 years after the lease is signed as long as the tenant pays on time and looks after the property.

The tenant will also run their home office from the premises and a large proportion of the rent will be tax deductable. If they owned the property they would not be able to claim as much in deductions. It also increases the tenants borrowing capacity if they rent the home they live in rather than own the home they live in.

By the way the property will provide the purchaser with quite a good depreciation schedule as it has just been completely refurbished.

Thanks

Shooting Star

 

[Sunstone]

Dear Kate/Shooting Star,

Latest weekly 3brdrm quarterly rent (September 2002 quarter) shows rent average of $280 for the New Farm/Teneriffe area. Down from $300 average for the June 2002 quarter.

So the rent levels are 25% higher than the average market rents for the area.

Cheers,

Sunstone.

 

[Ruby]

Sounds like a HK scheme to me

Ruby

 

[shooting star]

Does it really matter

If it is a valid way of making a property positively geared or neutrally geared for the purchaser - does it really matter that it may or may not be a HK scheme or not.

If it works who cares!!!!

 

[Ross Sondergeld]

Review of deal...

Hello everybody...


Shooting Star said, "Does it really matter (post #6) . If it is a valid way of making a property positively geared or neutrally geared for the purchaser - does it really matter that it may or may not be a HK scheme or not. If it works who cares!!!!"


It sounds like you just went to a "guru" seminar...

Therefore... without even looking at the property... it looks like the price is pumped up and the rent is raised... then the seller/tenant wants a 30% share of future profits after the sale.

I'll bet that you own the property... and if you don't own the property then... you've gotta be a real estate agent?

Am I right ????????????????