There are many ways.
1) sell an option on a property, and charge a higher than normal rent. SOme of the rent then goes towards reducing the purchase price the tenant will eventually pay.
2) sell an option, and then give the tenant a discount off any future purchase of the property. eg. pay $x per week and after 1 year you can buy the property for 10% less market value.
3) sell an option on a property, and charge them a fixed price for the property. ie no rent credit. The longer they last as tenants, the cheaper they can buy the property compared to market rates.
Terryw
Discover Home Loans
Parramatta
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Hi Terry,
With a Lease-Option, what are the expenses that an investor must pay in order to have the property?
Where do I find the documentation to complete a lease-option?
(Or can I just draw up my own lease using blank legal documents from the State Law Publisher)Thanks heaps,
Nathan
You still must pay all the usual expenses. No different to renting a property out normally. In some states you may be able to on charge the rates and insurances. Can’t be done in NSW without problems aparently.
You will need to see a solicitor to draw up the legal documents.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Nathan
Slightly concerned that you are looking at offering a LO when you are not fully au fait with the ins and outs of such.
Suggest you read up first as you will need to be able to explain to any potential tenant the pluses and pitfalls.
Unfortunately it is not the quick way to riches and it maybe worth your while to spend some money by sitting down with a Lawyer and going through the legal paperwork.
Richard Taylor
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