Who would you rent it out to?

[misty]

I wouldn't rent it to either. And I would be very hestitant about taking on the REA who suggested renting to DoH.

If the 'friend' of your Bro's os already asking for a reduced rent, this is a warning sign to me. Obviously it depends on how well you know him, but at the most I would be telling him that his is able to apply to rent it through the REA, just like any other potiential tenants. Keeping an armslength between yourself and you tenant is a good idea, being a landlord is like running a business.

DoH - I think everyone has already said everything about that.

[MrsFabuloso]

Arrrgh!!! I'm sooo confused!

Spoke to the RE this arvo, and DoH is interested, but hasn't given any difinitive answers. But they will take out a 3yr lease with us. Rent is optimal, and paid in full for 3yrs. They will also raise it $15 each year. My gosh that would be $410 in 3yrs!!! For a 2br 2bth unit! Wow...That's phenominal! DH and I have no intention of moving back here. RE said they have tenneted 5 units in our block to DoH. We have never had any issues with anyone in our block of units.... I have called Bro's friend and told him about our position, I told him I would give him a definate answer with in a week... Financially, giving the place to DoH would be our best bet. Oh man...decisions! I'm getting anxiety thinking about it!

[Kazbah]

Kel - you've just answered your own question. You're a guaranteed income for 3 years, an increase of up to $410 over that time. This is a business transaction, and don't forget you're not going to be working in your new life - you need that certainty to make the repayments on your investment.

Move emotion away from the flat, you're not going to return, it's a business transaction. Look at the figures ... also, if it was anyone *but* your bro's mate, would you even be considering renting? In reality, he's a stranger who your brother hangs around with.

[Pretty Butterfly]

Ask the DOH if you get ANY say in who they give it to babe... we have BRAND NEW flats next door... trashed.
And once a property is DOH, everyone knows it. VERY hard to rent out again later for a good price, especially if there are more in the area.
Not sure if its the same as it is here, but once you put too many DOH places too close, the whole area is ruined. (no offence to DOH folks, but is it true here for those that know where I live)
You may find its good rent for awhile, but your resale in a few years will drop dramatcially. We only have 2 in our whole estate, and we have already lost alomst $90,000 in value.
The couple across the road have lost more than us, and cannot even afford to sell because they would still have a mortgage left over.

Will DOH buy from you later? A private buyer wont pay much for exDOH here at all, might be different where you are though....

[MrsFabuloso]

Hmm, at the mo (for 2 more weeks, woohooo!!!!) we live in a pretty low socio-economic place anyway. The sale price hasn't risen much since we've had the place anyway, but rent is through the roof! We are going to try to keep the place as an investment. Plus there are DoH places in the block of units we live in anyway (about 4-5 the rent out from owners). We are looking at it being a fairly long term investment property hopefully considering everything goes to plan, lol!
I asked the RE if we have any say in who rents the place with DoH and he said no. He said they are much stricter with who comes into places now and that if we want them out they will evict them....not sure how right he is though or if he's just trying to go the easy way out for himslef??
Financially DoH is our best bet...

[FabFiona]

I would just make sure that regardless of who you rent it to you have landlords insurance so any property damage is covered.

[Pretty Butterfly]

I asked the RE if we have any say in who rents the place with DoH and he said no. He said they are much stricter with who comes into places now and that if we want them out they will evict them....not sure how right he is though or if he's just trying to go the easy way out for himslef??
Financially DoH is our best bet...

Babe, he is lying.
We have a neighbour who is a convicted felon who has abused ALL the neighbours, yelled and sworn at kids, threatened me and my kids, trashed the whole estate and made everyones life hell.
The owners had no luck getting them out. They have been here for a year, with 4 more to go. DOH will openly tell you they try to leave tenants permantly, and wont move them. You will have no rights as far as I know. DOH even refuse to take complaints from anyone in the estate now because they get too many, so there is nothing we (or the owners) can do. They literally dont care what they do.