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They will probably have an option to extend the lease if they want to after 2012. You have no say in it if they take the extension.
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.I think i'll give it a miss, i like to self manage my IP's.
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!
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.
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.
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"
It's both; it's optional, but DHA are the ones who decide if the option is exercised.Yes 5 years is a completely different scenario, but does anyone know if it's a "right" to renewal or "optional"?
It's both; it's optional, but DHA are the ones who decide if the option is exercised.
Exactly; it's not optional to the owner. DHA wrote the lease.Well that's just stupid then!
So technically it wouldn't be optional for the owner..
Exactly; it's not optional to the owner. DHA wrote the lease.