- keiko wrote:Please present me with a situation where it wouldn't be in the clients favour (eg. OzInvest not being able to continue with the lease back) It is not a $2 a week propsition as you suggested earlier…………..11 + years is the deal!Well thats an easy one, The company goes broke, and I know of many companies that have gone broke and they have been around alot longer than 11 years and I am talking all different types of companies small and big.
If Ozinvest go broke that doesn't mean the directors go broke, so if the directors personaly gaurantee what they beleive in then if ozinvest goes broke the directors have to pay up or they go broke too.
Ok OzInvest go broke………what is lost by the client….not the property, OzInvest dosent own the property the client does. Not money as the leaseback is paid week by week not in a lump sum. Worst possible case senario is having to get someone else to do the property management. If OzInvest go broke the client still owns a property in an area that is very well researched….so they either go with a company that guarantees rent or they go it alone and do not have a guaranteed rent at all. And maybe end up with a property in an area that isnt doing so well. Its up to the client…..if they want they can have, if they don't they don't. But why not go with an option that covers them? what have they got to lose?
Directors guarantees can also be without substance too. If the director has no personal assets then you won't be able to claim anything. Or even if they do have assets there could be hundreds of people making the same claims.
Guarantees are good to have, but just don't think they mean much.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed it
keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itYou also might be out of pocket $30,000 even if the directors guarantee it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itThats why we suggest strongly that clients do their due dilligence with the areas. We know that the areas are solid but know one should go into buying a prroperty from any one without "knowing" that the areas are solid. Anyone can buy a property and not have a tenant for 12 months. You would be out of pocket whether you went through OzInvest or not.
Terryw wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itYou also might be out of pocket $30,000 even if the directors guarantee it.
If you pay the $15.00 a week plus Gst you will have market rent in your bank account. Thats the deal. the 1100 odd that are in the leaseback are the proof in the pudding.There are alot of people right now who arent getting rent in their bank accounts….but they are not OzInvest clients.
Terryw wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itYou also might be out of pocket $30,000 even if the directors guarantee it.
This is true but with a personal gaurantee you have more chance of getting your money
god_of_money wrote:Ozinvest
Since you are insisted about 10 years rental guarantee… could you post the property in the forum for consideration?If you have an email address I can send you the links to the properties.
OzInvest Canberra wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itThats why we suggest strongly that clients do their due dilligence with the areas. We know that the areas are solid but know one should go into buying a prroperty from any one without "knowing" that the areas are solid. Anyone can buy a property and not have a tenant for 12 months. You would be out of pocket whether you went through OzInvest or not.
I am talking about the unknown, something extreme happens and it can't get a tenant even if its in a top location
OzInvest Canberra wrote:Terryw wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itYou also might be out of pocket $30,000 even if the directors guarantee it.
If you pay the $15.00 a week plus Gst you will have market rent in your bank account. Thats the deal. the 1100 odd that are in the leaseback are the proof in the pudding.There are alot of people right now who arent getting rent in their bank accounts….but they are not OzInvest clients.
Not a bad turnover $1 million
How high are the overheads on this?keiko wrote:OzInvest Canberra wrote:keiko wrote:what if the unknown happens and the house is not rented for 12 months but ozinvest goes broke on week 1, I might be out of pokcet $30k unless the directors personaly gauranteed itThats why we suggest strongly that clients do their due dilligence with the areas. We know that the areas are solid but know one should go into buying a prroperty from any one without "knowing" that the areas are solid. Anyone can buy a property and not have a tenant for 12 months. You would be out of pocket whether you went through OzInvest or not.
I am talking about the unknown, something extreme happens and it can't get a tenant even if its in a top location
Please give me a description of something extreme?
I would need to read the conditions on how and when you pay
But lets say I have a bunch of 5 properties on the same block and the tenants destoy the houses for some reason and they do major damage and it needs to be repaired but they will be vacant for a long time
keiko wrote:I would need to read the conditions on how and when you pay
But lets say I have a bunch of 5 properties on the same block and the tenants destoy the houses for some reason and they do major damage and it needs to be repaired but they will be vacant for a long time
The only time the leaseback does not cover you is if the property is uninhabitable ie. badly damaged,burnt down etc.
As a landlord you will be required to have building insurance that will repair the property and you will also have landlord insurance which will pay you rent whilst the property is being fixed. Once the property is repaired the lease back continues on from that point.Although I have no connection with Ozinvest, it amazes me how negative people can be when the company has such a sound track record. What if the company goes broke, what if – what if?
Everyone has a choice, Ozinvest obviously offer the Leaseback Guarantee but there is no obligation to use it.
If the company was just starting out I would question the guarantee by the company but I would think that with 22 years track record and 11 years backing the guarantee the risk v reward ratio must be in favour of the conservative investor.
Russ
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