Hi Misty

Another point to consider in the situation you are purposing is land tax. In NSW a wrapper loses his/her obligation to pay land tax as soon as contracts are exchanged. As wrappees are normally owner occupiers, they too don’t have to pay land tax after exchange of contracts because it is their PPOR. However if you as the wrappee are…[Read more]

Hi Amazon

Is the property in Australia or Vanuatu? The answer to your question is based on:
1. If it’s in Australia, which State the property is located as laws vary from State to State.
2. If it’s in Vanuatu, I have no idea

Cheers, Paul

Hi Misty

It is a little unusual for wrappers to allow their wrappees to rent out properties under an Installment Sales Contract but not impossible. I know a couple of wrappers that have and will consider it.

The following you should check with your accountant/tax advisor.

As you know, you don’t have to be the owner of an asset to try to make a…[Read more]

Hi 888

Because there are so many possible ways of “doing” vendor finance, at this point I’d ask your potential buyers what they have in mind.

It could be that they want you to finance the whole lot over 30 years at x% interest rate, i.e. you would hold a first mortgage on the property and get your money regularly but SLOWLY.

It could be that…[Read more]

Hi Jay

If you buy a property for $276,800 a few weeks back and sell it this week for $350,000, then this week surely you’re allowed to say that the property has a market value of $350,000 because this is what someone is prepared to pay for it.

If RAMS now value the property at $350,000 you have two indicators that the market value is…[Read more]

Hi Batta

Have a look at:
http://www.yourestate.com.au/

Cheers, Paul

Hi Misty

Check with your lawyer/accountant but here’s what I’ve been told.
1. The wrapper is not entitled to the deductions because he/she is deemed to have disposed of the property. For tax purposes this disposal is usually regarded as having taken place on exchange of contracts.
2. The wrappee is not entitled to the deductions because for…[Read more]

I’m shocked to find out how I’ve been lured into this awfull situation. Let me give you a quick run down of my “fall”.

It started innocently enough by reading a few Kiyosaki books which got me thinking. Then “they” started going after my hard earned cash and I shelled out for one of these weekend forums. After this awfull mind control…[Read more]

Hi Jim

To start off your education, try this free resource, i.e. have a read through
https://www.propertyinvesting.com/strategies

Wraps use an Instalment Sales Contract and South Australia is the only state in Australia where Wraps are illegal for real estate transactions. However Lease Options are legal in SA so, as your interest lies there,…[Read more]

Hi AB

Correct, i.e. as an individual, you will not be able to claim your losses against the income you earn overseas. However your accountant will be able to calculate your losses each year and these will accumulate. So when you get back you’ll be able to uses these losses, to offset your Australian income, in future tax returns.

As always,…[Read more]

Hi AB

I don’t want to argue with the above suggestion re negative gearing in high growth areas but remember that, as an expat, you can only offset your losses on a resdential property investment, against income earned in Australia.

And when doing your planning, it is also worth knowing that there is no tax free threshold for non residents on any…[Read more]

Hi Misty

Just tried
https://www.propertyinvesting.com/strategies/wraps.html
and it worked fine. Possibly the site was just overloaded at the time. My suggestion would be to try during the day. Good luck.

Cheers, Paul

Hi Batts

We took a big leap of faith and moved the family from a cushie expat lifestyle, back to OZ in early 2003, after buying Rick’s Wrap Pack. We attended Rick’s Camp in March 2003 and haven’t looked back since.

To say the least, it has been very profitable but what has also been great is the relationships we’ve built with the people we’ve…[Read more]

Hi Chris

Have a look at:
http://www.rickotton.com/lease.htm

Cheers, Paul

Hi Rich

I found Steve’s Wealth Guardian absolutely invaluable in getting my head around various business structures. Have a look at:
https://www.propertyinvesting.com/resources/11.html

Cheers, Paul

Hi Koshy

My wife and I started out with Rick’s Wrap Pack and we now have the Wrap Kit too. In short they are the foundation of our vendor financing business, i.e. they are wonderful educational resources which allow you to get started because of there step by step approach.

We’ve found the win win nature of the business to be an excellent plus.…[Read more]

Hi David

Have a look at:
https://www.propertyinvesting.com/strategies/lease-options.html

https://www.propertyinvesting.com/strategies/wraps.html

http://www.businesslawyer.com.au/fr_property.html

These links should help a bit with your research.

Cheers, Paul

Hi Dr X

Sorry, I think it must be too late and I’ve missed your point We purchased at $200,000 and we sold for $245,500. That looks pretty close to a 23% mark up in 5 years.

I usually structure our transactions based on the number of dollars I want to make as a back end profit. In this case I was looking to lock in a $35,000 back end profit…[Read more]

Hi Dr X

If I was structuring this deal, I’d set it up as follows:
1. Option price (strike price) – $245,500
2. Weekly rent- $386.50
3. Option fee – $7,400 (to be added to the deposit)
4. Rent credit – $50 per week
5. Option term – 5 years

Based on the cost of my borrowings ($209,000), the weekly rent would leave me with a positive cashflow…[Read more]

Hi Geoffrey

That’s correct. At the begining of the process, you, as the wrapper have set the level of your positive monthly cashflow and your final capital gain (sometimes called “backend profit” by wrappers). You have, to a large degree, fixed your cashflow and capital gain and the wrapees take their chances in the market and accumulate any…[Read more]