Sooshie

If the business has gone into administration, then the director or owner will no longer have any control over teh company. An administrator would have been appointed and they are teh ones that make all the decisions from the time of their appointment.

If is was possible to nominate another purchaser, I think the administrator would have to do it. They may agree to do so if it would generate some money for creditors.

But in Victoria it is obly possible to nominate someone without incurring double stamp duty, if you had a written agreement with them prior to the signing of the original contract.

And I beleive that the law has recently chaged and that it may not even be possible to do this any more. ie double stamp duty will be payable.

Terryw
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Jack

I understand that this is not possible, even if you have and/or nominee, without incurring double stamp duty (in NSW anyway). i have done in in Vic, but have heard the laws have changed and it is not possible down there either.

With options I think they have to be stamped by the land titles office to make them a legal document and that stamp duty is payable on this. But not sure how much or how it is calculated.

I have written options in VIc and haven’t had them stamped. I was not concerned with it too much as I was selling it not buying it.

Terryw
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I was trying to do this in Victoria and had to have another contract drawn up. In the end I never went thru with it.

You also must get finance arranged just in case they don’t settle (for whatever reason) on the same day. If the vendor give a notice to recind, you will only have 14 days to settle, and this is not enought time for a bank to do it.

Terryw
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Smoke

It depend on when you signed the contract. If it is more than 12 to 18 months ago, then yes you can get a loan based on valuation with a standard bank at standard rates. And this is with LMI approval.

If it is a shorter settlement, then you can still do it, but rates will be higher as we will have to go to smaller lenders or private funds.

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D

Watch out for fixed rates. The break costs can be very high. You never know when you may want to refiance to withdraw extra equity or when you may even sell a property.

It looks like Combank is trying to cross collateralise your loans. Maybe a better way would be to withdraw some equity form you land as the LVRs are low. You could then use this as deposit and get a 90 or 95% loan for your IP. This gives you greater flexibility in the future.

Terryw
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Fullout

Yes you will have to pay stamp duty and CGT on land.

You can try and sell the land you have purchased before settlement, but I don’t know about the deposit. If you are using a real estate agent, you won’t be able to get the new buyers deposit until settlement as it must go into their trust account. I don’t know what happens if you are selling it without an agent.

Terryw
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Polaris

If you go for the cheaper end, you could go very far using your your own money, then getting a large deposit from the wrapee which replaces most of your deposit. You keep saving in the meantime to help you go a bit further.

Mathew, no offence taken. I too have heard that it is not legal to do installment contracts using IO loans. But I don’t know where this idea comes from. My wrap contracts say nothing about it.

Another point, my VIC installment contracts say all of the wrappee’s repayment to me (wraper) must be paid off my loan. ie I am not allowed to pay the minimum and keep the difference. Does anyone know anything about this?

Terryw
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I agree with Willi

I do 5 years leases with an option to purchase anytime – the strike price is set at 20% more than market price and this decreases like a PI loan (tho more slowly)(I now think this may be too generous). I get a option fee upfront of $3000 to $4000 and get about 40% more rent than market value. This generates a good +ve cashflow and a capital gain when they cash me out. If they move out, the lose the option fee and I get to keep the house and do it again at higher rates.

So if you want to do a sandwich option you could find someone like me, take an option on their property and then you sell an option at a higher price with higher rent and a higher strike price.

Terryw
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Matthew

I think wrap is a broad term referring to both. At first I couldn’t understand why some people called LOs wraps as well. I don’t think you will find ‘wrap’ used on any legal documents. I think ‘Installment Contract’ or ‘Vendor Terms contract’ would be more accurate for what you refer to as wrap.

Terryw
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Yep. Anything related to the earning of income. Computer, Internet connection (for research etc), study courses, books, street directory, travel to see property or for study or to see accountant etc. Virtually everything!

Terryw
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