Property assets


1.

	Buildings, residential houses, etc.

	Generally purchased for a sum of money.

	May be occupied by the owner, or tenants.

	Transfer generally includes the title to the area of land that the building is located on, and the buildings themselves.



2.

A tenant is a person or company having posession of a building under a lease agreement with the owner.

Lease terms are generally 12 months (residential house), 3 to 5 years with 3 to 5 year extensions (business activities).

Typical arrangements


	Property type	house
	
	Value		$450,000

	Rent		$450 per week


3.

Fair rent formula, 2% to 3% of the cost of constructing the building, as the annual rent amount.

Higher rents may occur in high demand areas such as:


	Inner city, close to the CBD

	Near a waterfront (beach/ocean)

	Near major facilities (ports, etc)


However it's also dependant on the types of buildings and the area facilites (major roads, parks etc)



4.

Practical arrangements


	monthly rent = weekly rent * 52 / 12


The property owner is responsible for maintenance to the building, e.g. fixing broken roof tiles.

The tenant is responsible for keeping the property clean.

Owners do not have the legal right to enter the building during the term of the lease (12 months), 

	except as outlined in legislation (e.g. for prospective buyers to see the building prior to 

	an auction)


5.

Sale methods

	Offers by prospective buyers, generally with some guidance being given as to the price range (e.g. offers over $460,000)

	auction

	fixed price offer by the seller



	




