Deposit amounts?

Byronent, In answer to your question, our purchase price will be at market value, with the date of 2 years in view. This will be drawn up by a Solicitor, and will be handled through them. We will be looking at paying extra per week in order to build up a fair deposit by the end of the 2 years. We’ll all, also get advice on how to go about this for my daughters best welfare and how best she can go around this for possible Tax benefits.

Derek….Hi And thanks for your interest. There’s certainly no harm in asking Re; Lo Doc/NoDoc loans, though wer’e a bit concerned about extra high interest here. I believe we need the 2 years to prove our credit rating, and even then I think this will not be an easy road. But, by my daughter helping us here (And wer’e helping her, too), with care, due dilligence and doing things in a businesslike manner (thru Solicitors etc), then I know the outcome can be a win-win for us both.
In regard as to what purpose the housing will be used for on this block is still somewhat in the air. All development and building is proving to be extremely costly…ie everything has to be Cyclone proof, and even a medium size shed will cost around the $40K mark! And they did not go into this with enough info in regard to these problems, but for buy and hold, this will be a good investment, as Exmouth is a unique area and as such will be a long term investment for these guys.

Terry – Thanks so much for your wise suggestions -this is exactly the info I was looking for.
An offset a/c would really suit my daughter at this stage, as they have both been paying every available dollar into this block, but they are now unsure as to what they will be doing with it, and would like to start investing elsewhere. They already have quite an extensive share portfolio, and now would like to turn to R/E investment (even tho the time is not really right for this), although over here in the West, I believe there are still quite a lot of good growth prospects around.
Also intend to follow up with your suggestions in regard to setting up a trust, and am currently studying web-sites and will endeavour to purchase Dale Gatherum-Goss’s “Trust Magic”. My husband is a Building Surveyor/Inspector and we are going into Building Inspections so are also looking at opening a Trust for that small business as well, so are quite interested in finding out as much info about them as possible. Although I realize for this side of it we’ll definitely need a good Solicitor, so thanks for that reference.
Cheers Wendy

W Butcher

Byronent & Robert,
Hi, This will be an option/lease, and will include a pre-determined strike price. This will have to be worked out between the parties, and the solicitor. I am not sure yet how we will arrive at the strike price, as this will probably be determined by the area and dwelling that we end up with, and will be based on growth factors, just as it would be carried out with anyone doing an L/O. This will be a situation that we will make sure that my daughter will receive TRUE CG’s value(Pre-determined strike price), and when we cash her out, this will be respected & accepted, whether shse’s our daughter or not. It will be a legal drawn up contractual document!

Perhaps someone might have some ideas from their experiences with L/O’s in regard to Strike Price equations. I would be very interested in hearing their side of it….whichever that may be.
Wendyb

W Butcher