English
FrançaisHey,
I'm considering buying a house in a condominium built by the Terresens group. The house would be delivered in two years and would be rented out / managed by them (70-30 split of the profits). From what I've been told so far I'm free to pick which weeks the house is available to be rented out.
I have no experience with these types of properties, but it sounds very useful to have a company managing the house with minimal interaction from me.
Is this a good deal or am I being naive?
Thanks!
(I don't think this is exactly leaseback, but I thought it's close enough)
I think most people on here would say be very wary of any purchase where conditions are attached - the conditions you think you signed up for can easily turn out to be something very different further down the line. Even conditions written into contracts can be seemingly be ignored/disregarded with very little comeback.
May I ask what the attraction is about this development? Do you get it at a 'reduced' price with this arrangement? These type of incentives can often also not be quite what they seem - we purchased our leaseback apartment with a 30% 'discount' which in fact turned out to be in effect a loan which was spread out over the 11 years of the lease and had some tax implications we were not told about.
Do your resesarch well before committing to a purchase.
If there is a good letting agency in the area with a proven track record you may be better off buying a property in the conventianl manner and then letting it through the local agency.
Hi, its a commercial lease in that you are leasing you apt to operator who rents it and allows you so many weeks personal usage. The problem is when lease "ends" after 9 years, the operator has an automatic right to renew lease for another term. If you do not want this renewal you have to issue the operator an eviction notice 6 months before end date. As this is in effect closing down the business from rental income on your apt, you may have to compensate by paying the operator 2 to 3 years of their lost rent.
The 70/30 profit share may not be much if alot of the profit can be written off against opetators other costs.
The "back" in leaseback refers to the repayment of purchase TVA(VAT) but not sure if that applies here.