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  • Profile photo of BongoBongoBongoBongo
    Participant
    @bongobongo
    Join Date: 2003
    Post Count: 5
    July 16, 2004 - 12:49 am

    No Im not “holding out”, rather I am still acquiring information from different sources about this “Matrix” system.

    In response to KP “What is the point of the third party”…I believe that the 3rd Party acts as a go between, between the Investor and Buyer Tenant. The third party “guarantees” the rental payments and rent deposit even if the Buyer Tenant relinquishes the property…..so the risk to the Investor is minimised.

    Profile photo of BongoBongoBongoBongo
    Participant
    @bongobongo
    Join Date: 2003
    Post Count: 5
    June 28, 2004 - 11:27 pm

    Thank you to all your replies.

    From what I understand….

    A contract to buy and sell a property at fixed price for a certain period…say 7 years. And an agreed “guaranteed” fixed income for the investor for the seven year period.

    The Investor purchases the property from the market with a 10% deposit and then uses the property to get a 90% loan.

    The Third party find a Buyer/Tenant to live in the property and pay rent and pay rent/deposit (using both Rent and Rent deposit make it CFP)

    If the Buyer/Tenant vacate the property, for whatever reason the Third party ‘guarantee” to pay the Rent and Rent/Deposit to the Investor.

    At the end of an agreed term, say 7 years, the Third party (on behalf of the Buyer/Tenant)buy the property from the Investor at the price that was struck 7 years prior….the final sale price is fixed but the capital growth figure is rather low.

    It appears to be a way to lock in rent payments, loan repayments, capital growth and have a CFP property for a specified period.

    Anyway, thats how I understand it to be.

    Me…well I have two properties…one fully owned and the other is traditional negatively geared through a family trust. I’m rather new to this site and really appreciate any assistance[biggrin]

    Profile photo of BongoBongoBongoBongo
    Participant
    @bongobongo
    Join Date: 2003
    Post Count: 5
    June 28, 2004 - 5:42 am

    Hello Greg,

    I saw the Domain but it was not that.

    I am looking at being an Investor (The one who puts up the money and holds the title).

    The information I am after is to see if anyone else has heard of this and is anyone actually doing it.

    It “appears” to be a rather novel way to have a PCF property with an agreed sale price.

    Later, I will post some more info about it so as to add better clarification.

    Cheers

    Profile photo of BongoBongoBongoBongo
    Participant
    @bongobongo
    Join Date: 2003
    Post Count: 5
    August 30, 2003 - 7:47 am

    [:)]

    Hello,

    I have set up a Family Trust and attached to an Investment Company (Pty Ltd)

    The Trust purchases property which is kept safe (hopefully) from any personal loss.

    My situation is slightly different as I am a beneficiary of two other Trusts which are attached to two successful companies (I receive untaxed dividends which I send to the Family trust) and I am also a PAYG wage earner to one of companies.

    I move untaxed monies from the trust to my home line of credit mortgage (to decrease the interest payments by 10K per year) and move the monies back to the family trust at tax time.

    The family trust only has one property at the moment, which is neg. geared. So the next obvious choice is a pos. cash flow property….

    Anyone else have a similar structure???

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