Forum Replies Created
- keiko wrote:
I would need to read the conditions on how and when you pay
But lets say I have a bunch of 5 properties on the same block and the tenants destoy the houses for some reason and they do major damage and it needs to be repaired but they will be vacant for a long time
The only time the leaseback does not cover you is if the property is uninhabitable ie. badly damaged,burnt down etc.
As a landlord you will be required to have building insurance that will repair the property and you will also have landlord insurance which will pay you rent whilst the property is being fixed. Once the property is repaired the lease back continues on from that point.keiko wrote:OzInvest Canberra wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itThats why we suggest strongly that clients do their due dilligence with the areas. We know that the areas are solid but know one should go into buying a prroperty from any one without "knowing" that the areas are solid. Anyone can buy a property and not have a tenant for 12 months. You would be out of pocket whether you went through OzInvest or not.
I am talking about the unknown, something extreme happens and it can't get a tenant even if its in a top location
Please give me a description of something extreme?
god_of_money wrote:Ozinvest
Since you are insisted about 10 years rental guarantee… could you post the property in the forum for consideration?If you have an email address I can send you the links to the properties.
Terryw wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itYou also might be out of pocket $30,000 even if the directors guarantee it.
If you pay the $15.00 a week plus Gst you will have market rent in your bank account. Thats the deal. the 1100 odd that are in the leaseback are the proof in the pudding.There are alot of people right now who arent getting rent in their bank accounts….but they are not OzInvest clients.
keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itThats why we suggest strongly that clients do their due dilligence with the areas. We know that the areas are solid but know one should go into buying a prroperty from any one without "knowing" that the areas are solid. Anyone can buy a property and not have a tenant for 12 months. You would be out of pocket whether you went through OzInvest or not.
keiko wrote:Please present me with a situation where it wouldn't be in the clients favour (eg. OzInvest not being able to continue with the lease back) It is not a $2 a week propsition as you suggested earlier…………..11 + years is the deal!Well thats an easy one, The company goes broke, and I know of many companies that have gone broke and they have been around alot longer than 11 years and I am talking all different types of companies small and big.If Ozinvest go broke that doesn't mean the directors go broke, so if the directors personaly gaurantee what they beleive in then if ozinvest goes broke the directors have to pay up or they go broke too.
Ok OzInvest go broke………what is lost by the client….not the property, OzInvest dosent own the property the client does. Not money as the leaseback is paid week by week not in a lump sum. Worst possible case senario is having to get someone else to do the property management. If OzInvest go broke the client still owns a property in an area that is very well researched….so they either go with a company that guarantees rent or they go it alone and do not have a guaranteed rent at all. And maybe end up with a property in an area that isnt doing so well. Its up to the client…..if they want they can have, if they don't they don't. But why not go with an option that covers them? what have they got to lose?
Qlds007 wrote:So why dont the Directors provide Personal Guarantees on their product.
If they have been around for that long surely they havent got anything to be worried about.OzInvest guarantee market rent into their clients bank accounts for 10 years and have done so for over 11 years plus. And they continue to do so. They offer clients the choice ( and I do mean choice, if the client elects not to go for their lease back then so be it) to cover their rent for 10 years guaruaranteed!. The client still ends up with a property that has been researched thoroughly to ensure that OzInvest would guarantee it. People going into their 11th and 12th year of the lease back are still in it….why? Because it is a good deal for them and for OzInvest. It is completely up to the client as to whether they go for the lease back or not……but why wouldn't they? It covers them for any short fall in rent. Please present me with a situation where it wouldn't be in the clients favour (eg. OzInvest not being able to continue with the lease back) It is not a $2 a week propsition as you suggested earlier…………..11 + years is the deal!
keiko wrote:yes they are great arnt they, if someone offers something and they say there product is good then come on step up and personaly gaurantee it because if you don't then you don't beleive in what it is your selling,
I will personaly gaurantee anything I do because I beleive in what I am offering or wanting, any one that can't do that is a fraud and if they come near me they get punished cause I hate crooksAbsolutely. Go hard or go home! Stand up for what you believe in…..always! I am very lucky to be involved in a company that does just that!
Qlds007 wrote:Oh the old $2 Company Guarantee.Yes we had a few of those in Brisbane before the Company went bust and the Directors disappeared.
Yes agreed…that sounds very dodgy. But OzInvest have been here for 22 years and the lease back has been going for over 11 years. No fly by nighters!
keiko wrote:Hi, how many % are these properties returning?
Do the directors personaly gaurantee these lease back deals or only the company?[/quoteIn some cases we are seeing returns in Melbourne, Brisbane and Adelaide of anywhere between 5.00% and 5.50% rental yields.
there is a contact signed between OzInvest and the client stating that the client pays 16.50 a week inc gst and the client will receive market rent.
Terryw wrote:OzInvest Canberra wrote:Hi. thanks for the question. It is not an insurance product. It is a guarantee by the Company OzInvest. The lease back has been in existence for 11 years and has proven popular with OzInvests clients.In Prudential Insurance Co v IRC [1904] insurance was defined as existing where one person undertakes, in return for a premium, to pay another person a sum of money, or other benefit, on the happening of a specified event, the occurance or timing of which is uncertain.
Sounds like Ozinvest is charging a premium and will undetake to pay a sum of money if some event happens.
OzInvest contract to become the primary tenant. We are responsible for covering the rent whatever the circumstances.
Hi. thanks for the question. It is not an insurance product. It is a guarantee by the Company OzInvest. The lease back has been in existence for 11 years and has proven popular with OzInvests clients.
Purchasing off the plan is a solid strategy. But as with all purchases you need to do your due dilligence with regard to areas, builders and the companies that you choose to buy through.
Tthe new properties will generate a good amount of taxable depreciation! That and the fact that you will have new home warranites to rely on should you counter any repair proplems that older properies will naturally have!
Yes it is only residential properties. And only OzInvest properties are included in the leaseback. Having said that I don't want to sound like a sales person(but its what I am so I will give you information as to why the options that OzInvest provide are at least worth a bit of a look). OzInvest do the home work with regard to presenting options in high growth areas with good yields. They simply cannot afford to sell areas that aren't sort after with regards to rentals. In other words they won't sell what they can't rent out. It is a business after all! Also the leaseback is not included in the price of the properties. You can purchase the property from the builder for the same price as OzInvest offer. But I suggest googling the company and get feedback from people who have bought through OzInvest.
shakenbake wrote:Hi, I know for myself to calculate a "gross yield" just the weekly rental multiplied by 52 and divided into the price.In todays market anything under 5% doesn't really cut it for me and beware the rental guarantee!! I.e. If its such a good area and property wy does the rent need to be subsidized?? Dont think your not paying for that in the purchase price!!
It is easy enough to do your due dilligence to see if the property is overpriced! And with the rent guarantee being a tax deduction why not cover your self! Minimise the risk so you can sleep at night!
OzInvest charge 15 dollars a week plus GST, so $16.50 per week, which is tax deductable to gurantee that you will always have market rent coming into your bank even if the property is vacant.
Hi
I do work for OzInvest. And I do understand the questions you have and I find some of the ideas posted quite smart. I would be quite happy to respond to any questions you may have on OzInvest for information purposes only. If you do your due dilligence on OzInvest or any company for that matter you can have piece of mind when making what is a really tough decision. Buying a property is not something to be taken lightly. LIke I said I am willing to answer any questions that you have about OzInvest. I am unable to make comment on other companies as I do not fully understand their business models.
Thanks
