Anyone wanna buy ’em ???? [biggrin]

(Mum’s a good cook, but dad has a bit of a flatulence prob) [ohno2]

I’ve thought about the renting bit – but I can’t work the numbers out, as to how they can easily afford to rent it, and still have lots of money freed up.

My reasons for wanting to help ’em out ??

I know it’s nothing to do with investment, so doesn’t belong on these boards … but –

– they love this area (they used to holiday here every year) and hate where they live
– their house is starting to need too much maintenance as it is old, and the yard is big and too much to look after
– they don’t have hardly any friends around where they are – and there are lots of activities, groups for seniors here
– they’ve had a hard life & deserve some happiness
– my sisters would also like to see them move from where they are

So what I get out of it is worth more than money

Thanks for that. But I have read that you have to pay stamp duty at the market value – and the market value is currently $420,000, or more.
And yep, having more inheritance put my way is a good idea – but could be a bit messy – and I just find the thought of profiting from their passing a bit freaky as it is, without getting extra.

TerryW – i thought I read that with wraps – you didn’t pay stamp duty until the house was all paid off. Bummer …. that’s another dampener on the idea.

And yep, my dad would like more than $35K. What for, I dunno. [blink]
Also, my partner would like a bit more than $350 for it. (It’s our first development & can’t afford to give away $70,000)

However – I think the answer is staring me in the face.
Maybe we should just build another duplex and make them “tenants in common” when the block is bought.
If mum and dad sell, and we refinance – we could do this. Sounds like a plan ???

(manofaction – I did mention your idea and said I liked it, just that it didn’t free up cash for them. With other info on wraps – I see it won’t work. Thanks again !)

Wrap pack – another short word on duplexes. Make sure that Telstra, your energy supplier and the twits in council handling your sewer connection diagrams – all know that you’re building a duplex, and check and recheck that everything is in the right place for the 2 units, and make sure telstra and your phone line contractors come out to the block BEFORE the driveways and turf go down. Don’t believe telstra workers that come out – speak to a telstra supervisor.

We have been mucked around everywhere, and our builder let us down with things he could have easily organised. These things have cost us extra 1000’s.

Thank you so much everyone. Very much appreciated

I do have two sisters who are beneficiaries to my parents estate – so anything we do would have to be in total agreement with them.
We all trust each other completely, and my parents definitely want to leave an inheritance to all of us. (even if we don’t want them to.)

I love the rent their house out/they rent ours idea – and the license to occupy idea – except it doesn’t free up cash for them. And that’s what they want.

Selling their house and renting ours is a good idea also.
But having $400,000 in the bank would cut a big slice of their pension (they’re on full pensions) and almost the whole amount gets deemed 5% every year. That’s another big chunk gone.

I guess there’s something really wrong with my wrap idea – ‘cos everyone has by-passed it
I know it’s not a “make-money” wrap – it’s a “lose-money” wrap (for us) … but it seemed like a plan.

Sigh !
Inna

Thanks Derek

You’re right about the surplus cash to pay off future PPOR.
Our accountant provided no future scenario’s – or gave any kind of help like that. Maybe I’m just expecting too much ?
(they do call themselves ‘wealth creators’ in their ad though [V] )

With the developing, my partner is a registered builder and also a qualified architectural draftsperson – so can do all that stuff. We had current development built by others, as he is currently working fulltime doing drafting.But we hope to do developing fulltime in future.

We’re NOT expecting to prices to rise much at all in the near future – so will factor that in, as though prices stay stagnant. Any rise will then be a bonus.

We’ve done the number crunching with said friend regarding leaving one unit unoccupied for 6 months – and it does seem the way to go.
(nothing I would have thought of on my own !)

Thanks everyone

Lots of things to think about there.

Elves – thanks for the ‘renting’ thoughts.
Some really creative ideas there !!
I’ve already checked the renting option out with centrelink though, and then after that – on this board – and it seemed that it would affect their pension. (they are on a full old age pension.)

So they can’t have any IP at all – and they are too old to have the worry – they are simply not up to it.

There is definitely trust there between my parents, us and my sisters – but my husband and I are not too interested in the inheritance part of it.

We’d rather they actually spent all their money having a good time while they are here, and leave us nothing but happy memories

We do want to continue developing, and if we didn’t sell to my parents, but sold to someone else – we ‘d have all the equity we need to keep going.

Melanie – that’s a good point about Lenders not accepting the 25% as equity.
We didn’t think of that. I am going to check with our lender today and see what he says.

Of course, we would definitely see an accountant/solicitor before prceeding with anything.
We just don’t tend to find them very creative, and find that boards such as this can often give some great feedback.

Thanks again

Thanks Bluecat & Terry W

looks like that option is out of the question. Back to the drawing board !