Hi All
I know many of you or very experienced in wrapping properties however I haven’t heard many of you talk about lease options.
As you know I am starting out but I am getting mixed reports as to which line to take, some say only go wraps some say only go l/o.
Anyones thoughts or advice as to pros/cons would be much appreciated.
Delboy[cap]
Hi Delboy
I have made a few posts on this before.
I prefer LOs for a number of reasons such as
– easier to get finance
– less problems with equity ownership (ie it is all yours)
– you can access the increased equity
– Can be shorter, say 2 years per option, allowing you to be more certain. ie wraps could drag on for 30 years.
etcTerryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry
You say you can access increased equity.
I thought it was ilegal to do so, well on wraps it is but on l/o you say it isn’t.
I presume this means from once you don’t refinance above the agreed purchase price, is that right?
Delboy
[cap]
Delboy
It would depend how you structured the LO.
eg one way, you could have a 2 year option, when they wish to renow after 2 years, the value would have risen so you could determine a new strike price and you could increase you loan to this amount (subject to serviceability).
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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