Hi,
My name is Scott and I am currently in the process of putting my first LO deal together. I have purchased property in Adelaide and last week spoke to a solicitor about getting a contract and the details of it. He advised me that writing rent credits into the contract as reducing the exercise price was not legal in SA and could potentially void the contract. He suggested to factor the rent credits into the exercise price. Just curious if anyone has any advice/thoughts on this issue. My initial thought was to have a 5 year lease but to credit 5 years rent credits and be exercised in 2 years would downgrade my profits. I had a thought of 2 year lease with option of further 2 year leases and lower the purchase with each subsequent 2 year option. I haven’t run this idea past my solicitor yet meet with him tuesday would like to present some different options.
Cheers
Scott
Hi Scott, Can’t help you with your lease option question as I have never attempted them. I would be very interested in what the answer is when you have one.
However, do you live in Adelaide? There is a group of us that meet once a month to discuss investing ideas like lease options. If you’re interested please send me a private message and I will give you the details.
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582
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