vacant possession

With DHA it depends on what suits them.

If they want it until the lease expires then they will not consider anything else.

However they may have an excess of properties in that area and be glad to lose one.

DHA leases are hard to get out of.
 
I think i'll give it a miss, i like to self manage my IP's.
Sorry - can't help myself. IPs has no apostrophe in it when the "s" relates to multiples, ie is an abbreviation for investment properties. If you're talking about the investment property's mortgage, it's the IP's mortgage and does need an apostrophe. :)

If it were just one post, I'd ignore it, but it's also incorrect in your signature. I think goals with grammatical errors are less likely to be achieved, so I'm trying to help you, not just being pedantic. :D
 
That stinks!

not really. dha have sign a legally binding contract with the current (and future) owners until X date that is expected to be honoured. it is just business. nothing stinks about it - except that it doesn't suit what you want.

next!
 
not really. dha have sign a legally binding contract with the current (and future) owners until X date that is expected to be honoured. it is just business. nothing stinks about it - except that it doesn't suit what you want.

next!

YES! I understand that! It stinks because it doesn't suit me - That is the only reason why!! Next it is..
 
Yeah, I'm not sure why it's "stinky", either.
Besides, the issue of self managing, why would one want to buy a property on a long term DHA lease, anyway. The only people who can buy them during the lease term are investors, which pretty much limits your CG, given that OO are the real drivers behind CG, not investors who make up a very small percentage of the property buying population.
I'm guessing the attraction of the deal was a keen price. At least now you know why it's priced so competitively.
 
Just a different perspective, not sure how much sense i'll make, but i'll try.

You're only tied to the contract for 2 years, and in these 2 years it's more than likely going to be CF -ve. But at the end of 2 years it will gain value because it is no longer DFA?

Also at the end of 2 years it's possible it will become CF +ve, is it not?

But at the same time i guess it depends on how negetively geared it is.

Also at the end Skater said (but not too sure) that DFA recarpets and repaints the house, so may be in better condition than when you bought it.

But i guess it depends how much research you've done, so the value of all the other houses in the area, i'm guessing it's either near Penrith or Richmond. Also how much under market it is, if you can adjust the rent in the next 2 years, really what your limitations are, and then decide if you can affored it if it is CF -ve, and management fees over the next 2 years etc, because after that it's a normal IP.
 
Just a different perspective, not sure how much sense i'll make, but i'll try.

You're only tied to the contract for 2 years, and in these 2 years it's more than likely going to be CF -ve. But at the end of 2 years it will gain value because it is no longer DFA?

Also at the end of 2 years it's possible it will become CF +ve, is it not?

But at the same time i guess it depends on how negetively geared it is.

Also at the end Skater said (but not too sure) that DFA recarpets and repaints the house, so may be in better condition than when you bought it.

But i guess it depends how much research you've done, so the value of all the other houses in the area, i'm guessing it's either near Penrith or Richmond. Also how much under market it is, if you can adjust the rent in the next 2 years, really what your limitations are, and then decide if you can affored it if it is CF -ve, and management fees over the next 2 years etc, because after that it's a normal IP.

I agree.

I looked at 2 places that were DHA rented. One went to auction and I was told the fact that it was leased under market value for 2 more years would be taken into account. But it never even got a bid and they would not accept our "reasonable" offer.
Second one was under market price and under market rent. The loss in rent (about $3,000) over 2 years was more than compensated by the low price.
Rents are adjusted with CPI and they do refurb after (I think) 10 years.
I wouldn't consider it a negative with CG unless you are going to sell it withing the fixed lease period. You can buy quite cheaply BECAUSE only investors can buy them but after 2 years (or whatever time) it's on the market with everything else so you CG would actually be more because of the initial saving.

I wouldn't rule them out just because it's managed. It's the dollar figure that matters, not who collects the rent.
 
Second one was under market price and under market rent. The loss in rent (about $3,000) over 2 years was more than compensated by the low price.

Exactly, $3000 is nothing over 2 years. And you'd make more because it's now listed at the market value, so even though the area hasn't had a great gain your property may have because you bought it cheaper, and hopefully won't need any work by you.
 
If the take up their right of renewal, then you're locked in for 5 years.
These contracts are written to the advantage of DHA, not the owner.
As one poster on this forum found, when the contract was renewed at a weekly rental well below expectation.
It's not just about the dollars. Flexibility is worth a lot, too.
"The able general values above all freedom to manoeuvre"
 
If the take up their right of renewal, then you're locked in for 5 years.
These contracts are written to the advantage of DHA, not the owner.
As one poster on this forum found, when the contract was renewed at a weekly rental well below expectation.
It's not just about the dollars. Flexibility is worth a lot, too.
"The able general values above all freedom to manoeuvre"

Yes of course 5 years is a long time and situations change and you may need to sell. And of course 5 years adds to more loss in rent.

I didn't realise there was an option to extend on some. You would know what the rent is at present and what it is likely to be for at least the next year as it rises with CPI. I'll keep an eye out for the renewal option if the need arises. Thanks.
 
If the take up their right of renewal, then you're locked in for 5 years.
These contracts are written to the advantage of DHA, not the owner.
As one poster on this forum found, when the contract was renewed at a weekly rental well below expectation.
It's not just about the dollars. Flexibility is worth a lot, too.
"The able general values above all freedom to manoeuvre"

Yes 5 years is a completely different scenario, but does anyone know if it's a "right" to renewal or "optional"?
 
Exactly; it's not optional to the owner. DHA wrote the lease. ;)

Makes a lot more sense now, i would've thought optional would mean LL could chose whether they take full possession or let it out to the DFA for longer.

So in knowing this, i wouldn't take the chance!
 
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