I read a post somewhere,now lost it, that I am sure said something like “the wrappee could pay out the wrapper using acumilated (how the hell do u spell that word??) equity? Is this true?
Hi Misty1
To answer your question absolutely, the wrappee can pay the wrapper out from accumulated equity.
When you do a wrap deal you agree on a price for the property at the start of the contract. If over the years the price goes above the agreed price then the wrappee is entitled to that equity. If it turns out to be more than they owe or even enough for a good deposit, then they can get the house revalued and approach a bank for loan to pay the house out.
I wouldn’t worry about it for awhile though as house prices are on the way down, unless the house is in Perth.
KerwynThanks Kerwyn.
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