Forum Replies Created
Hmmmm, you can take out an option to purchase and assign the option…this will avoid the stamp duty issue
KPThey’re greast figures Investron,
I heard a rumour Greg got his subdivision…..
KP
DUe,
One is a contract to purchase on terms, with the vendor setting the terms (usually to suit the purchasers ability to pay)and at the end of the term, or if the purchaser elects to refinance before the end of the term, the title passes to the purchaser.The other is a rental agreement or a lease as administered by the residential tenancies act for your state, with an OPTION to purchase the property after a predetermined time and for a predetermined price.
The purchaser has the option to purchase or not purchase, and pays a fee ( option fee) for this right, as well as an ongoing option fee in monthly installments which is credited to the purchase price if the purchaser elects to exercise the option.
If the purchaser elects not to exercise the option, then it expires and the purchaser forfeits the option fees that were paid towards the purchase price.
They are different in so far as one is a contract to purchase and the other is a tenancy lease with an option to purchase.
When you use one over the other, is dependent on the purchaser or tenant, as to what they prefer ( depending on who you are targetting) and on the laws in your state ( wraps are illegal in SA, and require a Credit Providers Licence in WA )
KP
Jo
What on earth is a synchrotron ????and where can I get one…
KPWell,
More than often the rent return being offered by the builder is above market for that type of house in that area, so it looks good as an investment…BUT usually that rent has been capitalised back into the purchase price,
By this I mean you are effectively paying for the rent.
Compare the cost of a block of land plus the house to build in that area, and you should find quite a significant difference between the two.Having said that, its not a bad way to go for a passive investment, as usually the builder pays the outgoings, for the 2 yr leaseback period, etc.
Its horses for courses, not my cup of tea…but may suit others who want passive, no hassles investments.
KP
TEd,
What possible ramifications could you possibly mean ???The biggest threat to Oz from Indonesia is if there is a mass exodus…as we do not have enough population, let alone soldiers to patrol the coastline to stop 220 million refugees invading the coastline by wooden boats !!!
Their biggest threat is the warmongering tone taken by our illustrious and dynamic duo, DOwner and Howie Howard
KP
Too funny Mono….
Remember….sunshine pls…heard its going to be 32 on Tues ????
Youre a GENUIS back…..and I will never doubt you again….ever…never….heheheI know you were trying to get more info before making a suggestion….for boof…to substantiate that “HEART OF GOLD” of yours…
Re,
kPMonopoly you big meanie…..
((Give boof a break…and suggest a book.
boof, if you haven’t already read 0 – 130 properties, start there. There are examples of real property transactions in it ( umbers crunched)
Also the Jan Somers books have examples in themm..try starting there..KP
What was this thread about?
(Better read the title and not be so lazy)Aus, your story reminds me of a similar one.
The IP I sold last year came back on the market about 6 to 7 months ago and is still not sold..scary how the price has dropped from the initial asking to where it is now.Its too close to the old purchase price that they are now trapped ( all offers are at or below the previous sale price)so the vendor will be out of pocket to the tune of stamp duty + agents commission…not good..
KPWhat a coincidence….I reckon Greg should publish a book…not funny huh Greg.
Greg it all sound too good to be true…I’m superstitious…if you pre predict an outcome by either speaking about it or telling someone about it, it quite often doesn;t come true ( like an agent counting their commission on a sale…usually kills the sale )
Hope this works out for youCheers
KPOi !!
Get back on topic..Well I am a saint compared to some of you… quit smoking some years back, hardly drink, never eat out, and no take away food. Where we live you would understand why.
No more indulgance on toys…delayed gratification firmly set in place.
To prove this, we came to a point last year where my sweetie ( the better half by a long way )finally grumbld about all the junk that was in our yard. So we decided to sell it all, this included 3 motor bikes,a boat, a 4WD, and we decided to go the whole hog, so we also sold an IP that we had in town. This all went through in 3 months…it was all gone and turned back into cash.
This left us with….a boat, a motorbike and one 4WD…
I read John Burley and it changed my outlook completely,…now wehave no personal debt and will keep it that way.
Only borrowings are on property which is deductible.
Our only indulgance is a few trips away every year,but even then I will be looking at property, so they are partially deductible.
This concept of “abundance” really works when you reign in your spending on “wants” and stick to the “needs” till you can afford the wants…
KP
Oh and BTW, I live in Karratha and for no fee I will not find you a property as they are overpriced,even if the rents make them positive geared, and the agents are really bad to deal with, so if anything goes wrong it will cost you an arm and a leg to go there to sort out your property woes….( personal experience of someone who bought sight unseen and had problems with the local PM and asked me to help)..Don’t go there !! Don’t do it !!
Interesting point you raise Terry.
thats thinking outside the square.
Its all a question of apportionment.
You are still living in the place thus PPOR, but you are deriving income by renting out rooms…BRILLIANT !!Good one techa,
WIll spend a bit more time reading the whole post.But you raised an interesting point about who owns the stock that you are putting up for rent to an option buyer. Sure you own it, but the margin lender has security of it ( mortgage?) and its not paper anymore, so how do you put up the share ( electronic paperless) for rent??
KP
There was a news article recently of a guy who had the grant rescinded because he was deemed to be still living with his parents….because he had every meal there ( parents house) and his electricity bill was too low….be careful, its not worth getting caught…
KP
The winds of change are blowing….take heed !!
Who hinted at it being abolished in the first place ? Was it a politician??
If it was then you can bet that it was a precurser ( test the reaction) before attempting to bring it in…or stamp it out, whichever way you see it.
KP
Ummmm,
if your friend is going to claim the FHOG, therefore claiming to use the home as his PPOR, then he can’t claim any interest costs, as if it were an investment property…KP
That explains it…
tried to make an appointment with D GG but got the same response.
Im travelling all the way from remote WA…thought it was an opportunity to meet in the flesh.
I guess these days its not the done thing anymore.No worries……onwards upwards
KP
As Terry said, you can buy in the wife’s name or enter into a lease option.
The stamp duty to transfer into joint names once the bankruptcy has been discharged will be minimal under the spousal, or related loved ones ruling.
KP
techa,
Can you write covered calls on and underlying share if the share is leveraged ( via a margin lending product)
What is the strategy on the covered call ??I have traded shares and options in the past but this is all new to me ( maybe I nedd to attend a course or get in touch with P Spann or something..)
KP
Geeze I’m no expert and one of the mortgage brokers would answer this better…
But its $550k x 80% = $440k available to borrow.
Then $440k – $395k = $45k.equity available to use.However if you can go to 90 or 95% LVR then of course the amount available to borrow increases.
KP
((
