Hi Pyramid

Instalment Contracts (wraps) in NSW are great because they have the wonderful general effect of making land tax disappear! Here’s why:
1. In NSW a property is deemed to have changed ownership, for land tax and stamp duty purposes, on exchange of contracts.
2. Once you have sold the property via an Instalment Contract (wrap), you have exchanged contracts, ie. disposed of the property and are therefore no longer liable for Land Tax.
3. For land tax and stamp duty purposes, your wrapees now own the property but it is their principal place of residence (presumably) so they are not liable for land tax either.

Land tax has now disappeared for both you and your purchasers (wrapees). Check all this with a good “wrap savvy” lawyer but we have had a zero land tax assesment for a couple of years now and we have carried out a number of wraps.

I hope this helps.

Cheers, Paul

Hi Mark

May I suggest that you look closely at some of the signatures of the people who have posted on this thread. Your answer may very well lie in a call or two to these numbers

Cheers, Paul

Hi ganakars

If you are willing to move away from the buy & hold/tenant way of thinking you will find positive cashflow real estate transactions are definitely still available out there in the market place. And many of these transactions can be done for little or no money down (like the one I mentioned above).

Have a look at:
https://www.propertyinvesting.com/strategies
http://www.financewraps.asn.au
http://www.rickotton.com
http://www.businesslawyer.com.au/fr_property.html

Good luck.

Cheers, Paul

Hi ganakars

My best advice is to finish Steve first book and quickly read his second. That will definitely help to clear the fog slightly. I’d also suggest you only consider that the begining of your education. Keep reading whatever you can get your hands on.

In relation to the seminars you’ve been to, I’d guess you may have only attened the 1 to 2 hour promotions for the real seminars. We recently attended a seminar and with what we learned at that seminar, we ended up controlling a house for only the small cost of getting some paperwork drawn up. We then on sold the the house and walked away with a second mortgage from the new owners for $42,000. They owe us $62 per week but have elected to pay us $91 per week. Not bad for the few hundred dollars we spent on getting the necessary paperwork drawn up.

Needless to say, we’re not real inclined to call all of the real estate “gurus” out there “quick buck merchants”. But don’t spend the money on these seminars (because they are pricey), unless you commit to taking real action after the seminar is over.

Good luck.

Cheers, Paul

Hi Mc

We run our vendor finance business under a trust/corporate trustee structure. If we were starting out now we’d be off to speak with Ed Chan about his Property Trust structure. We saw him speak on this structure at the end of last month and were impressed by what we heard. I have nothing to do with Ed’s business other than to suggest you have a look at his website at:
http:www.chan-naylor.com.au

Good luck.

Cheers, Paul

Hi Mc

We are still wrapping and finding plenty of people out there who are wanting to buy their home via an instalment contract (wrap). We definitely don’t think the boat has sailed.

Terry’s explanation in his post covers the movivations of most wrappees.

Cheers, Paul

Hi Pyramid

We use Tony Cordato. Have a look at his website at:
http://www.businesslawyer.com.au

As you are new to wraps I’d also suggest you join the Vendor Finance (Wraps) Association of Australia. It’s website is at: http://www.financewraps.asn.au

Good luck with your wrapping.

Cheers, Paul

Hi Kagen

Probably yes The following is from the NSW OSR website at:
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63440&_dad=portal&_schema=OSRPTLT

“A person is not eligible if they or their spouse (including de facto spouse) has had a relevant interest in any residential property in Australia prior to 1 July 2000, whether they live in it or not.
However, a person may be eligible if they or their spouse (including de facto spouse) has only ever had a relevant interest in any residential property in Australia on or after 1 July 2000 and they have not resided in that property.”

Cheers, Paul

Hi Robo

I agree wholeheartedly with Dr. X.

It might also be an interesting question to ask your accountant where he would have you invest this super. And if and when he mentions specific super funds, ask him what up front and on going trailing commissions he will receive from these funds if he manages to “sell” them to you.

Good luck.

Cheers, Paul

Hi parkdog

There is a monster post on this subject at:
http://www.somersoft.com/forums/showthread.php?t=18101

Good luck.

Cheers, Paul