Forum Replies Created
Ok Ok
I need to read the end of the posts too….
sorry Caroline (don’t know how I confused you with Gavin <grin>) though I guess that the congratulations have been earnt by you both [
]Bruce
Sooshie
good on you for analysing the deal !!! Thinking about it and realising the potential is the hardest thing to do. Excellent ! [^]
I was just wondering about exit strategies such as:
- How much it would cost to build two units on that land and what they would sell for ?
- Build two units and how much they would rent for ?
- Keep existing house and rent it out ?
Does anyone have any clarity or other ideas ???
cheers
the Bruce [
]Hi all
yes we have a bit of an interest in Tas [
]Sharing experiences and shooting the breeze can be a fun thing to do no matter what ‘level’ you are at.
So, if anyone would like to set up a get together we would try and attend. We know another couple of investors who might be interested in coming along too.
cheers
Bruce & Denise
ps: anyone else going to have a listen to Mr Jenman when he tours ?
Camilla
one other aspect is that the lender will base her/his LVR% on the LESSER of the purchase price or the market valuation.
The market valuation must provided by a professional valuer, whom is usually on the lender’s “panel”
cheers Bruce[
]Hi CY & AD
One way of doing this is to have BOTH a company and a trust.
- You and business partner/s are directors of the company.
- The company is the trustee of the trust.
- The company purchases properties in its’ capacity as trustee of the family trust
advantages:
1) Asset protection: There is some minor level of protection as you can resign as directors and appoint someone else if there are problems
2) Succession: you can resign and let your children take on directorship (thus control) without any real costs. ie probate, stamp duty, sell then buy costs, etc, etc
3) You are in a position to give personal guarantees to lenders when sourcing funds.disadvantages:
1) set up cost
2) running cost
3) generally higher finance costs to companies than individualsHowzat ?
cheers
the Bruce [
]Fergus
We have used this technique as a tool for helping out folks who really need to have the extra dollars to pay for their rent (or purchase).
For a number of reasons we originally started out wrap deals with a one year lease with option to buy. Where we lived, at that time the FHOG was not available. Using the lease came from an idea of our solicitor’s, in response to our desire to make sure that people buying from us would still be able to get the FHOG if it became available where we lived (because they had no interest in the property).
We were a little surprised when one of our tenants “rocked on down” to the appropriate govt agency and was told that she would receive rental assistance ! We checked the printed guidelines ourselves and it certainly appeared that it was ok.
So, with many of these clients we have elected to write them a new lease every year with a reduced option price as they progressively pay off their home.
It works (as Steve said) on the premise that the tenant has the option but not the compulsion to purchase the property. The downside of course is that they can not register for FHOG if they are under a lease.
So, I think of it as another screwdriver to put on your property investing toolbelt to use in appropriate situations. [
]BTW, I purchased the e-book from the site Corey mentions in his post. It is really interesting and has some good info on lease options. Definately “a good read”, but no substitute for a good solicitor and your own common sense !
cheers
Bruce
ps: This is a prime example of how helping someone out has unexpected and helpful results for you. This appears to be a universal law…..[
]Edited by – [email protected] on 19/06/2002 12:31:47 AM
]
]
]
