Hi Ridi

I have to agree with PropertyAngel. I believe your greatest asset, when it comes to buy & holds, are your tennants. I therefore think your pizza idea (maybe pizza and a movie?) is a great one. Good luck.

Cheers, Paul

Hi James

Have a look at:
https://www.propertyinvesting.com/forum/topic/16651.html

Both Steve and Rick(probably the two best known “wrappers” in OZ) recommend that, as a general rule, you wrap “standard” residential property, preferably with a minimum of 3 bedrooms.

In the last 13 months we have done 5 wraps and have made a paper profit of $175K…[Read more]

Hi Wilko

I would suggest that you stay with property but then I’m biased

If you do go down the track of using a licenced Financial Advisor I’d suggest that you steer away from those that offer their services free. This is because they then take all the sales commissions and you can never be sure if their recommendations were unbiased, i.e. did…[Read more]

Hi Honky

I would strongly suggest that you use a solicitor to get the Option drawn up correctly. Your solicitor will then ususally place a “Caveat” on the property which will give you some protection against the owners breaking their contract, i.e. selling the property outside the terms of the Option.

I hope this helps.

Cheers, Paul

Hi ArckC

Instead of renting for 12 months or more it may be possible to buy your new home via a lease/option or wrap (seller finance). However you ability to purchase via these methods will depend on just how much you have to pay each month if the rent from your two properties doesn’t cover costs (mortgage, rates, etc).

While a L/O or Wrap will…[Read more]

Hi Peter

As Terry said, that’s it. An Instalment Contract (Wrap) is based on a normal real estate Contract of Sale. This “normal” contract has about 13 pages of special conditions added which, among other things:
1. Specify that “completion will take place in, eg 25 years. Therefore the title stays in the wrappers name until completion in 25…[Read more]

Hi Peter

I believe you’ll get most of the answers you’re looking for at:
https://www.propertyinvesting.com/strategies/wraps.html
and
http://www.businesslawyer.com.au/fr_property.html

I hope this helps.

Cheers, Paul

Hi John

There is a lot of information available in one particular post on the Somersoft forums at:
http://www.somersoft.com/forums/showthread.php?t=18101

The poster, Quiggles, was featured recently in the Australian Property Investor magazine in an article about investing in the US.

I hope this helps.

Cheers, Paul

Hi Leigh

In the last couple of years I’ve done some borrowing for property while overseas and while there are quite a number of lenders that do have non resident programs, I wasn’t able to find any that went above 80% LVR for non residents.

While I won’t disagree with any of the previous posts, if you did decide that you want to enter the market…[Read more]

Hi Westan

I haven’t bought any property in the US yet but I have been reading the interesting posts from “Quiggles” on the Sommersoft Forum. He and his wife were featured in the last issue of API.

He’s been using a Nevada LLC but still finding difficulty in finding finance.

I’ve just came accross a US loan company which profess to specialise…[Read more]

Hi cathnniv

Another good resource for information on wrapping is:
http://www.businesslawyer.com.au/fr_property.html

When you get there, click on the “Vendor Finance for Real Estate” link.

Cheers, Paul

Hi Greg

As far as I know the only company that will do a building insurance policy for a house which is going to be on sold using an Instalment Contract is Australian Unity. And the broker who got this policy set up by Australian Unity is Money Matters Financial Services in Melbourne. The person to talk to there is Thad Bednarski (03) 9571…[Read more]

Hi DNA

So far we have sold 5 homes using vendor finance Instalment contracts, i.e. Wraps. All in NSW. Two of the 5 received the FHOG. One couple paid us a $3,000 deposit and the other couple paid $1,000.

I’d suggest you have a chat with Tony Cordato. I believe he should be able to give you the correct info.

Cheers, Paul

Hi

Many thanks to all of the above for your help. Much appreciated.

Cheers, Paul

Hi

Andre, sorry I can’t help you much with your finance question. However, Algenon I can help you with what the FIRB has to say about Lease/Options to non-residents.

If a lease for a residential property is less than 5 years (including any possible extensions), FIRB approval is not required for that lease. If longer than 5 years then it is…[Read more]

Hi Simon

Thanks for that. I was a broker up until awhile ago and still do the odd application.

What I’ve heard is that a lot of lenders have real problems refinancing clients out of an Instalment Contract. I’ve also heard that a few or a couple (I’m not sure) don’t have a problem with this. I’m looking for those few so that I don’t have to…[Read more]

Hi easymoney

I’m not sure if I’m able to mention a thread on another website but here goes anyway. The couple that are featured in the latest issue of API, post regularly in another forum under the name “quiggles”. They have written a very informative series of posts about their U.S. investing experiences…[Read more]

Hi Scotty

I noticed you’re based in NSW. A lawyer that does a lot of work on Lease/Options and Instalment Contracts in NSW is Tony Cordato. His phone number is (02) 8297 5600. His web sit is:
http://www.businesslawyer.com.au

Cheers, Paul

Hi Frano

There are 3 wrap friendly lawyers listed for WA on the Vendor Finance (Wraps) Association of Australia website. On the “Wrap Specialist” page. The Association’s website can be found at:
http://www.financewraps.asn.au

Cheers, Paul

Hi Steve

We have done what you might call “traditional” wraps but not via H&L packages so I’ll stay out of that part of the conversation.

Just a quick point on “wraps” in S.A. Selling real estate via an Instalment Contract (normally called a “wrap”) in S.A. is illegal. However don’t let this put you off. You can use the lease/option strategy…[Read more]