Interesting!!! Can't happen in SA I don't know NSW real estate law enough to comment.
I would be P*55ED OFF  too!!!!

What ever happened to people taking responsibility for their own actions? If both these products were thouroughly researched people getting into them would have been aware of the risks without waiting for asic to come down and protect them!

I agree that people can be protected to a degree by cracking down on scammers but in doing so, asic is also creating a dependency mentality amongs the public, most people's brains are on automatic pilot and they wait for the meida or the government to do the thinking for them. In having no responsibilities, they are robbed from great investments because they just dont know the difference between those and a useless scam!

They are the biggest scam out! I am dead against them and can't believe that they have passed legislation and actually offered to people.

Positive cashflow helps people build a portfolio faster but true money in real estate investing is made through capital appreciation.

In SA, wrapping is outlawed and now there is a bill to reduce the number of lease options going on (although I doubt it will go through). Both these creative techniques allow people to build equity even before they own the house and they are not allowed.

Yet the state governement is allowing these ridicoulous scams like shared equity. What a joke!!!! Sorry I think they are an insult to everyones intelligence and I don't agree with them

You should rely on your pm to do it! That's what they are paid for? But do keep on top of them

what insurance company are you using?

If you want to claim against your landlords insurance in terms of rent loss. There must be a written fixed term tenancy in place!
Periodic or continuing tenacies are valid in terms of tenancy legislation but insurance companies (many of them) would require that a written lease be in place before a claim was made.

I would suggest to get one drawn up ASAP otherwise you are paying insurance premiums for nothing!

I wonder where they got the idea for that business name? Sound's very much like "We buy Houses"!!!
Don't know anything about them but I just love their display of origninal thinking!

Rent to Buy is a term used for many things, it is not descriptive and dosen't really mean anything from a legislative point of view. Our solicitor has advised to never use the words as they are contentious!

Lease with an option to purchase is more descriptive. It describes taking out a residential tenancy agreement on a property along with an option to buy it! There is no room for ambiguity!

Vendor will finance deposit is another term that is more descriptive and means that the vendor is willing to carry back a second mortgage on the deposit so that the puchaser can buy the property with no money down. This process is also sometimes called "rent to buy"

A wrap around mortgage is also sometimes called "rent to buy"

So to answer your question, NO rent to buy does not really exisit!!!

Hey what happened to my signature and the rest of my posts????? I had over 1000

What is it?

This legislation is basically saying that anyone with an option to purchase a property in which they are paying rent for more than 6 months can ask for all their money back if they decide not to purchase. The contract is voidable!!! The vedor/owner however is locked into the contract if the purchaser does decide to buy!

I think this piece of legislation is appualing on the part of the state government and there is no need for the proposed changes. There is a serious issue with affordable housing in SA and they want to limit the solutions! Lease options create opportunities for home buyers to enter the market and this should be seen as being favouable!

The state governement is allowing equity loans in which a bank can finance a 20% deposit then be allowed to take 40% of any future equity in the home once it is sold! Why is this scam allowed and yet they want to abolish lease options in which a purchaser can keep all future growth in the propertry even before it is purchased!

During a discussion with parliment on March 6, the Real estate institute of SA neglegted to comment on this part of the legislation. Typical real estate agents…. focused on commissions and not solutions!

This affects all investors whether involved in vendor financing or not. Investors, renovators and developers can no longer negotiate a settlement of 6 months or longer for the purpose of renovating or developing the land under a lease agreement or license to occupy, the contract would be voidable!

We are obviously opposing these changes and I would like to hear from any one in SA who this is affecting!

Investment Property Management
http://www.adprop.com.au