Hello everyone!,
I’m about to invest in property and I think I am going to start in the deep end initially: using Wraps and Lease-Optioning to source positive cashflow deals. I am curious as to whether you can use a First home buyer’s grant as an incentive to entice tenants to lease-option, and also whether it is possible to redraw on accumulated equity during the contract term since the title is not yet transferred until the call option is exercised. Also are there any experienced lease-option investors out there who have found a particular demographic to be favorable over another? and which states must attach rates and other maintenance costs to the rental as opposed to allowing the tenant to pay for them separately from the rental you charge. Also could anyone inform me what the usual mark-up on rental rates usually is for a mid to high income lease-option tenant? or is that too subjective a question? …your input on these questions or any other additional info about Wraps, Flips or Lease-options would be invaluable to me and greatly appreciated!
kind regards
Yidn_shalom24
Hi
You can’t use the FHOG as they are only renting from you. They may be able to use it when they cash you out.
Usually you can increase the loan on the property after optioning it. But they may place a caveat against the title, preventing this unless they agree.
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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