The tax office have produced rules that basically say that wrap money is not included as income until the property has been realized (last payment made). You can find this info at http://www.ato.gov.au under rule 2004/28 or type in ‘owner finance’.

[xmas]
scullyman

If you are worried about the vendor going belly up, put it in your contract that all monies are returned to you in that event.
Yes, the lessor can use the house as collateral as he still technically owns it.
In most cases you can take your option at anytime. You can insist that it be included in the contract. Be carefull though. You many have…[Read more]

Hi Brisbane 04

You will find the Lease option info under ‘investor strategies’ on left of this page.