Hi. Great site, great discussion.
Okay team: Fairly simple question that may have a simple answer.
What is the difference between a wrap and a lease/option?
Is a wrap an instalment purchase arrangement?
I understand that a lease/option is where the tenant/purchaser takes a lease with an option to purchase the property at the end of the lease term subject to the terms and conditions of the option. The option would have the contract attached to it so that the contract becomes effective when the tenant/purchaser exercises the option.
Any help would be appreciated. I understand there are fairly strict requirements in West Australia for instalment contracts and so I am tending towards getting started with a lease/option strategy.
Have a great day!
The upside of a lease option is that they give you the ability to keep title in your name in a vendor finance arrangement (qld). The client leases the premises with an option to purchase the property at a set price. Sometimes the lease agreements concict of rent and capital sometimes they are just rent.
Instalment contracts are as they sound. Contracts between two parties that consist of a payment per period which is an instalment toward the purchase of a house….eg. hous costs $73K, deposit of $2K, interest of 9.07% ………weekly payments of $138.29 over 25 years.For info sake it might be worth going to the November weekend that Steve is organisising as many different property ideas are discussed….(two of which are these). I know I am going to be there.
Hope this helped.
Enjoy
AD
P.s. I have only ever done Instalment contractsA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney Smith
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