Hi
I am currently looking at a Investment property to purchase that is currently being leased by the NSW land and housing Corp for 3.5 years. The rent that is currently paid by the Gov. is reasonable and I know from a little study that the rent could be raised once the lease agreement expires. However, I have concerns that there could be some traps that could go off once the lease expires. The government has leased the whole complex for 10 years and has 3.5 remaining. The apartment has everything going for it. It has, according to the agent been on the market for 6 months and hasnt been sold due to people wanting to own/occupy rather than be tied into a property for 3.5 years as an investment. I myself, am comfortable just having it as an investment property. My question is. Has anybody been in a situation like this before? and when the lease expires, could it be difficult to get the current tenants out?
Thanks
MM
So is there a reason I didnt get a reply? Or has nobody been in this position?
MMTreat it as a normal purchase with a tenant on foot. If there is no option/market rent review at the end of the lease/if the govt wants a new lease, negotiate new terms/rent if not within the last six months start negotiating the vacating of the premises and the make good.
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