Hi All

Just a quick comment on the idea of writing maintenance, etc responsibilities into the option document, in an effort to try to get around a landlords responsibilities under the Residential Tenancies Act.

I too had this idea. However when I put this idea to arguably the most experienced vendor finance lawyer in Australia (in NSW) he let…[Read more]

Hi Yidn

1. The FHOG cannot be utilised in any state of OZ when using a lease/option.
2. As long as you have the correct mortgage facility, yes it is possible to redraw the accumulated equity after you have entered into a lease/option agreement.
3. I’m sure someone will correct me if I’m wrong but I believe all States residential tenacy laws…[Read more]

Hi coast2coast

Welcome to the forum and good luck.

When your wrapees first move into the property they probably owe you the purchase price, less the deposit they’ve paid you. You then set up some form of software to monitor their loan to you. Whenever they decide to refinance or buy you out, you simply go to your software and see what they owe…[Read more]

Hi Vernon

The term lease option can be confusing. A “lease option” isn’t a stand alone document. It’s usually a normal residential lease, accompanied by an option to purchase which, for good legal reasons, are completely separate documents.

You can read more about lease options on this site…[Read more]

Hi Richard

We’ve found the small classified ad to be our best form of advertising for our market (mainly homes in the $200K to $300K range). We continue to place all the properties we want to sell, via vendor finance, on at least 3 websites but in 18 months and 6 houses, we haven’t had an enquiry from any of the websites.

Websites might get a…[Read more]

Hi nm

At this early stage, i.e. before you’ve purchased your first property, I’d suggest you speak with a knowledgeable practitioner about getting your business structure set up in a more advanced form than the simple partnership you are considering. It may cost a couple of grand initially but as your property empire grows, you’ll appreciate…[Read more]

Hi Kendo

I think if I were to give you an answer here, I’d just miss too much important information. To answer this question properly, I’d recomend you get an educational resource like Steve’s “Wealth Guardian”. I found it to be a great resource for my initial education into understanding and using the various business structures that are “out…[Read more]

Hi Moonscape

Try http://www.owner.com.au

Cheers, Paul

Hi Maruco

I operate in NSw but I believe the Residential Tenancies Act in NSW and Qld are pretty similar.

If you try to off load the maintenance responsibilities of a residential property, onto the tennant, you will be probably be found to be in breach of the Residential Tenancies Act, if you are taken to court or the Residential Tennancies…[Read more]

Hi Sonja

We use Tony Cordato and can recommend him. He certainly knows his stuff and is regularly asked to be a guest speaker at the Vendor Finance (Wraps) Association’s meetings and educational seminars put on by Rick.

His phone number is 02 8297 5600

Cheers, Paul

Hi gilad

Correct me if I’m wrong but are you sure you’re not getting “residency” and “citizenship” mixed up together. From the length of time your friend has spent in Australia, it seems unlikely that she does not have Australian “residency”. And like a lot of “permanent residents” in Australia she may not have Australian citizenship.

If your…[Read more]

Hi Dr X

Not one. Although we’d be happy to use the technique in what we regard as the right situation. To date we have used Instalment Contracts. Along with NSW’s Land Tax considerations, Instalment Contracts just seem to suit our clients better than a L/O’s. Maybe it just “in the mind” but an Instalment Contract seems to give them more of a…[Read more]

And a couple more I just thought of:
1. Structure the initial Option document so that the tenant buyer has an option to extend the Option for “x” years, under whatever conditions you percieve as ethical.
2. Do the maths on how long it will take your tenant buyer to accumulate, say a 10% deposit using just his/her rent credit alone. Then make…[Read more]

Hi Dr X

Presuming that you are making positive cashflow from the L/O each month, why not just extended the L/O for whatever period is mutually agreeable.

I’m sure your solicitor can come up with an agreeable “extension” document for little cost.

I hope this helps.

Cheers, Paul

Hi FUN

May I suggest you go back to the FIRB web site and have a good read. The specific page is:
http://www.firb.gov.au/content/real_estate/residential.asp
The specific paragraph starts, “Under the Act, a foreign person is:”

As you will probably have a “substantial interest” in the trust you speak of, the short answer is that this trust would…[Read more]

Hi

“Wraps are legal everywhere in Australia except South Australia.” This is a quote from Steve, taken from this web site. In south Australia you cannot use an Instalment Sales Contract (a wrap) but you can still use a Lease/Option (and many people do).

“Consumers considering providing finance through a mortgage wrapping arrangement should be…[Read more]

Hi Lance

Thanks for the information on CGU. I must admit that Australian Unity have been getting “over the top” with their costs for wrapped properties. Would you mind PM’ing me with the contact details of your CGU contact. Thanks.

Cheers, Paul

Hi Trajik

I agree with Fun, I regard it as “before tax effects”

Cheers, Paul

Hi Jake

It may be possible to turn your negatively geared property in Berwick into a positively geared investment by selling it using a vendor (seller) finance technique. Have a look at:
https://www.propertyinvesting.com/strategies/wraps.html
https://www.propertyinvesting.com/strategies/lease-options.html
and
http://www.financewraps.asn.au

How…[Read more]

Hi Fun

With regard to second hand residential property, the FIRB web site says:
“Acquisitions of residential real estate that has been previously owned or occupied, that is second-hand houses, flats or units, are not normally approved except for the following two categories:

Foreign nationals temporarily resident in Australia, holding a current…[Read more]