Reply: 1.1.1.1.1.1
From: Michael G
Hi,
In regards to numbers, pay a couple of hundred $$ and get a valuer to come in and value the house.
If the develop wants to harp about fixed term rent, then factor 5% for property management savings and 2% vacancy against the purchase price.
Explain to them that these are the figures used in seminars. If they have other data, then they, the vendor should produce it.
Of course which vendor in their right mind is going to go out and prove the BUYER that the vacancy is much BIGGER than 2% ???? hehe
Furniture package?, well by the time you get it will be 3yrs old. So have your accountant create a depreciation schedule. Don't forget to factor items under $300 can be knocked down 100% in 1st year (I think).
Basically you have to go in there and critised EVERYTHING, and reduce the value of EVERYTHING.
If they say that this is worth $x, get them to produce a receipt!.
Good luck, tell us how it goes!
Have a look at DHA homes, and see how much they are inflated because of leases.
Remember, after three years, your home will be valued at MARKET rates. So if you paying ABOVE MARKET now, and sell AT MARKET later, then you have lost money WHEN YOU BOUGHT. Its as simple as that.
Its even possible the MONEY YOU LOSE is EQUAL to the RENT you got. If that is the case, was there any point in getting the rental agreement in the first place?
Just a thought?
Michael G