[EthanParticipant@user1111Join Date: 2015Post Count: 3]

November 25, 2015 - 8:24 am

huilo wrote:

lease options are generally not that great as when you go to the tribunal you have a higher chance of not coming out on top

Oh? What issues are you hearing? The worst I’ve heard is that sometimes the vendors must have the option sums previously paid to be considered as credits towards rent. Not pleasant but not too bad, if things got as bad as getting the parties to NCCP.

Ethan | Terrapodean
http://www.terrapodean.com.au

Make Home Happen

[EthanParticipant@user1111Join Date: 2015Post Count: 3]

November 25, 2015 - 8:21 am

Hi All,

I agree with Richard, lease options (also known as ‘Rent-to-own’) are common here in Aus and if done right, they can (and should be!) a win-win to both parties.

huilo wrote:

how you advertised for tenant buyers?
do you prefer doing instalment contracts compared to lease options? and if so how come?

I’m not Richard but thought you might like also my 2c? :-)

You can advertise in many ways, offline and online, I guess it depends more on the ways you’re most comfortable with?

Within the Vendor Finance options, lease options are the best for the vendor as s/he gets to keep the title until the buyer/tenant pays the entire sum (usually by using a bank down the line) where as in instalments, the buyer holds the title and the vendor only has first (or second…) mortgage.

Hope this helps?

Cheers,
Ethan

Ethan | Terrapodean
http://www.terrapodean.com.au

Make Home Happen

[EthanParticipant@user1111Join Date: 2015Post Count: 3]

November 25, 2015 - 8:10 am

Hi Jessica,

This is also my first post here but the 3rd option you mentioned is right down my alley and noticed that nobody addressed this option so here I am :-)

Jessica May wrote:

3. try something like selling on vendor’s terms(I think it’s called a ‘wrap’)?
What would you experts do if it was your mistake, not mine?

This option could be very lucrative for you. Just because you don’t believe in that property and location, it doesn’t mean nobody else will. You might actually do some real good to someone who can only rent now but would could really use a leg up and become a property owner.

So, in addition to good karma and all, you can expect 2 additional benefits:

1. Increase the cash flow from the property to positively geared.
2. Lock-in a price that will reflect a modest growth over the next 2-5 years (usually 3-7% p/a)

Hope this helps?

Cheers,
Ethan

Ethan | Terrapodean
http://www.terrapodean.com.au

Make Home Happen