Hi all,
I write to you all with a lot of excitement as I,ve just this week put a deposit down on my first investment property on the Central Coast of N.S.W and I believe it ticks all the boxes in my criteria, it has a long term tenant on a government housing lease who has lived in the home since it was built 3 years ago and she has just recently signed on for another 3 years which to me sounds like excellent news as I,ve been told the government guarantee’s rent for the term of the lease only problem is I don’t know anything about government leasing and have had trouble finding any reliable info.
A few questions spring to mind like would I need a property manager for a government lease, (I,ve been told I wouldn’t need one)
does the government or tenant pay a bond, are rent increase’s scheduled and fair, if the tenant damages the property will the government fix it to the prior standard, what type of insurance would be appropriate for a government leased property etc… please help!Hi C.George,
Congratulations !! It is always a big step to buy that first investment property. Well done!!!Re Govt Housing, the only one I am vaguely familiar with is “DHA” (Defence Housing Australia). They provide Management, guarantee a regular rental, fit new carpets and paint after a pre-determined time (6 years?? or 9?? not sure) and/or at end-of-lease.
They do charge a fee for this – back when I was sussing it out, their charge was 15% – sounded a bit high, but that should be offset by the rental guarantee and the “make everything right at end of lease”. Have a read-up on them – only because I would think other Govt Depts would likely use a similar set-up.
I never did purchase a DHA place, but have met a few who have (and seem OK with it all). Hope that helps,
Benny
Hiya
Congrats on the purchase.
It’s important that you find out what type of lease is in place as some lenders aren’t overly keen on certain types – take DHA for instance, some won’t go above 80%….not that common and is often easy to get around but something to check with your lender before submitting an app.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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