The MAcH 10 Lease Paves The Way For Long Term Rental
Long term rental is a winner for property investors, tenants and first home buyers when the MAcH 10 Lease is used. Everyone benefits from long term rental. Property investors get peace of mind because they have a blue chip registered housing provider as a head lessee guaranteeing the rent. Zero vacancy for ten years with the MAcH 10 lease. Tenants get peace of mind because they can plan ahead. They have a home, not just a house for the long term. First home buyers benefit because their expenses are lower and they can save for a home faster.
Read more about the MAcH 10 lease changing the investment property landscape.
Long Term Rental A Stepping Stone To The Australian Dream
The security that long term rental provides all parties makes it the ideal entry point for first home buyers. Let’s face it, most people buy near work then sell and move for a retirement lifestyle. Most people move every five to seven years. So if you have security for those years it makes sense to rent while investing for the home you want to retire in.
Rental market could tarnish Australian dream: Deloitte – Mortgage Business
Deloitte financial services partner James Hickey told Mortgage Business that while home ownership is an aspiration for many Australians, strengthened leasing structures could shift some of that focus.
Mr Hickey explained: “A lot of people say the uncertainty of renting almost further encourages them to purchase property so they have greater control of their destiny, but a lot of that is because often leases are 12-month leases and they then go onto rolling one-month leases, where if you don’t renew it there’s uncertainty as to whether the landlord will put the price up; will you be able to afford that? Does that mean you’ll need to move out of your area you’re familiar with?” Rental market could tarnish Australian dream: Deloitte – Mortgage Business
The MAcH 10 Lease Makes Reliable Long Term Rental Available To All
- The MAcH 10 long term lease can be for ten to 25 years if the property investor wants it, while the tenant can have the term they need.
- Rent is increased each year by the CPI and marked to market every five years.
- The registered housing provider is responsible for maintenance and repairs.
- In return for maintenance repairs and zero vacancy the property investor accepts a rental discount depending upon the area. The discount usually means the property investor is paying an extra $5 or so per week for peace of mind.
- MAcH 10 leases are held by registered housing providers. These are blue chip tenants, semi-government NGO’s with billion dollar balance sheets. These registered housing providers then sub-let through their key-worker programmes to top quality tenants who want security of tenure.
It is a win for all concerned. The long term lease reduces the property investor’s overheads because there is zero vacancy and no maintenance. The end tenant gets security because they can have a longer term. The rent increases are predictable.
The investment property is better managed.
The property investor and the tenant know that the property is being managed by a professional organisation. Not some teenage girl, your local real estate agents niece.
Registered Housing Providers provide services and benefits the local real estate agent cannot. For example our registered housing providers have;
- 24/7 emergency call lines
- comprehensive bill paying for property investors
- tenant assistance services for other matter because anyone can lose their job or get sick and are
- strictly audited by the Commonwealth Government
Acknowledging that the appetite for home ownership will always be strong, Mr Hickey said longer-term leasing structures for five-, seven- or 10-year terms have the potential to change the perception of renting as they provide “a degree of permanency”.
He commented: “There are a lot of other societal things that could be made to actually divert the sole focus from it being an aspiration to buy a property — which is still fine and will be strong with people.” Rental market could tarnish Australian dream: Deloitte – Mortgage Business
Have You Seen The Benefits of Long Term Rental for EVERYONE?
If you want to know more whether you’re a property investor, tenant or property developer fill out the form below and we will get straight back to you.