All Topics / Creative Investing / Creative Lease Option WA

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  • Profile photo of natwayne28707natwayne28707
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    @natwayne28707
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    January 16, 2005 - 3:46 pm

    Hi

    I was wondering if anyone in Perth is involved in a lease option arrangement where they buy houses that need renovating and find a tenant who is willing to renovate the property for a share of the profits when house sells. Or anything along these lines.

    thanks

    Wayne

    Profile photo of Robbie BRobbie B
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    January 16, 2005 - 4:12 pm

    What a great idea!!! I have never thought of doing that. I would imagine there would be a lot of issues with it though. Who pays for materials, etc.

    I would like to hear if anyone has done this successfully.

    _____________________________________________
    [withstupid]
    The forumite formally known as Big Rob

    Profile photo of PurpleKissPurpleKiss
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    January 16, 2005 - 4:13 pm

    You’d also need to make sure their workmanship would be up to your standards.

    Good Luck with the idea.

    PK

    Profile photo of natwayne28707natwayne28707
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    January 16, 2005 - 4:47 pm

    Thanks for those replies, shall give more details on this idea.

    I am currently building my second house which I plan to do up and sell or maybe rent out cashflow +ve.

    In the meantime I am having to pay rent while the house reaches completion. I didn’t realise at the time when I sold my previous house that I could afford to live in that house until the new property was finished.

    So I am currently not enjoying renting someone elses house so was trying to think of a creative way to buy another house.

    A lease option sounds like a way I could live in a house that needs minor renovations (paint, carpet, gardens and maybe kitchens and bathrooms). So could possibly enter into a lease option with someone who maybe had a negative geared property that needed renovations. Could pay them above market rent in the meantime and offer an option to buy the house say in a years time at a predetermined price or a share of profits from the sale.

    Sounds like a win-win situation. I would get to live in a house that I could treat as my own (within reason) and would have the challenge of doing the renovations. The owner would of turned their negative geared property into cashflow +ve and would have a motivated buyer down the track and a reliable tenant in the meantime.

    Wayne

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    January 20, 2005 - 5:49 am

    Wayne
    I would be intersted in discussing this with you. I live in WA and I would be interested in financing the properties provided I can get a satisfactory return

    Kind regards
    David

    Profile photo of jscottjscott
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    January 22, 2005 - 2:03 am

    Hi Wayne,
    I’m buying and selling with lease options around Perth and could be interested in some sort of partnership with you. If you’d like to talk about it email me on info’at’jaylin.com.au

    Profile photo of natwayne28707natwayne28707
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    January 22, 2005 - 7:58 am

    I would undertake most of the work myself eg painting, landscaping, flooring and probably bathrooms. I would be happy to pay for all materials that are used, as I would get the benefits of these if I undertook the option. Or say if the owner chose to sell the house once it was renovated could maybe be reimburse for the materials or something similar.

    Hopefully this is a successful idea seems to be a bit of feedback with it

    Thanks

    Wayne

    Profile photo of betterbizbetterbiz
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    January 22, 2005 - 10:27 am

    Sounds like a Wrap to me (albeit at a discounted selling price represented by the agreed/shared added value of the tenant).

    Profile photo of natwayne28707natwayne28707
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    January 22, 2005 - 10:41 am

    I have been talking to someone who is currently doing a few lease options in Perth. I would be paying rent with an option to buy in the future. A component of this rent would be building equity in the property. The figures look pretty decent.

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