Hey everyone, still here, just waiting for my stupid credit report to arrive so I can move on to the next step with this investing stuff.
2 Questions:
(1) are wraps legal in Canberra?
(2) Are lease options illegal anywhere? It doesn’t seem to make sense that it would be illegal to lease something to someone and give them an option to buy it after a while…p.s. steve, thanks for that info!
email: g e n e r a l g h e r k i n @ y a h o o . c o m
phone: 0405 411 098Hi Nathan…
I don’t know much but I can tell you what I have gleaned from this site & other info…
Wraps are only illegal in South Australia, however in any state you have to be very careful with the wording & conditions etc to make sure you are doing it legally.
As far as leases go I can’t help there… I’m not up to that part of ‘property investing 101’ just yet… still getting my head around wraps & positive cash flow properties!
Nathan,
The only contingency I have heard for Canberra is that you are dealing with leasehold rather than freehodl property.
So really what you are wrapping is the 99 year lease rather than the title.
Haven’t heard that it is illegal b4 in Canberra, so I doubt that is right.
Belladonna is right re: SA. Developer went bust many years ago and the government said the only people who can do it now is the government.
RE: lease-options. Haven’t heard that they are illegal, but the terms and conditions need to be carefully drafted given the different tenancy legislation in each state.
Cheers,
Steve McKnight
P.S. You’re welcome re: the info. But make sure you use it by taking action.
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ouch.. i think i heard about that 99 year lease thing… how does it work? are there any easy loopholes around it?
email: g e n e r a l g h e r k i n @ y a h o o . c o m
phone: 0405 411 098Yep, they are, and have been, done in Canberra. At the mo, wrapers are being charged for stamp duty on the sale to the end-buyer plus land tax.
Hi all
Doesn’t the buyer have to pay stamp duty when he re-finances and buys you out, not the seller? This is the same for every state isn’t it?
When Nathan says that Land Tax has to be paid, he means that Land Tax is payable every year just like for any other investment propery in the ACT, right? Is there any reason why this couldn’t be factored in to the Wrap deal? I guess it will make it less attractive, but are there people out there doing wraps in the ACT?
Simon.
Hi all
Just in case you don’t know – stamp duty is tax deductible when you pay it in Canberra. [
] This is due to the leasehold. From memory we have not had any leases come up for renewal yet, but I would really be interested to see what would happen if the government decided to charge a hefty (rather than a nominal) fee for a new lease.I have not done any ACT wraps, but I do know that there are people out there doing it. Prices have risen quite substantially in the last three years, so it’s just about impossible to get a house for under $250K which has taken the gloss off the options somewhat.
Cheers
MelYOu ar enot wrong Mel, the property increases here have been incredible. We bought our property in April 2001 for $185K, have done very little to it and recent valuation came in at $350K MINIMUM. Anyone looking to invest in ACT be a little cautious at the number of units – the word from all my RE & finance mates is that we are headed for a major over supply.
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