With a LO is the tenant/buyer elidgable for FHOG as he has not bought the house until he exercises his option. In that case the C.O.C. return is considerably less then what is stated.
Hi,
In a lease option there is no access to the FHOG as there is an option to buy, but no cotract to buy (as there is in a wrap).
Accordingly the investor aims to recoup some of the necessary cash down in the form of an option fee.
Regards,
Steve McKnight
**********
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**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Just curious Steve as to who writes up the Lease and option contracts. Does a solicitor do this. What would be the cost?? In the example the lease is 5*5 years. Does the option apply for 5 years or 12 months in this example. If the tenant does not want to exercise his option after the 12 months and doen’t want to pay another option fee but would rather rent, are you legally allowed to terminate the lease and find a new tenant/buyer so you can receive another option premium??
P.S. I forgot to mention it before but the new site is very user friendly. Keep up the good work.
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