Hey people,
I would love if you were able to guide me in the right direction with some of my queires.
I initially read about Lease Options as a way of producing Positive cash flow IPs over a year ago. However only in the last 2 weeks have I revisited the subject and would appreciate any input you could provide.
I will explain our (my wife and I) situation first.
I am from Ireland and followed my now wife back to NZ after meeting her in Dublin.
We puchased a house in Lower Hutt in Oct 04. We spruced it up a bit and lived there untill we married in Sep 05. We rented the house out, on an year contract and went back to Ireland till Jan this year.
There is roughly $50-60k equity in that property now.
I have read up alot of info on Lease options mainly from others experiences over the last week, including some snipets on this forum.
My understanding of Lease Options are open to correction and I would welcome all input.
Step 1:
Finiding sutiable tennant to work with.
Step 2:
Finding the property that meets their needs and is within their price bracket.
Step 3:
Get all relevant Finance and Tax issues in place. eg, loans and correct company structure. (could probably be step 1 also)
Step 4:
Agreeing lenght of option, up front option fee, weekly repayments and future selling price.
The above steps are pretty basic and boiled down. From reading this forum and others I now realise I may have to open a trading trust registering for GST, as opposed to a LAQC as my Intent is to Sell the property at the outset.
This process requires the help of an accountant and a solicitor familar with the required contracts - correct?
I would love to meet anyone in the Wellington region who has experience in Lease Options as I am quite excited as to the prospects this strategy could have.
If you can fling some personal experience my way I would appreciate it.
If there is anyone in Wellington who would be willing to meet and share their experiences with me, would be great. I am partial to a bit of air travel also so could meet anywhere in NZ with people who could share their understand of this process.
I will be going to the WIPA meeting this month for some first hand experience also.
Looking forward to your replys.
Rgds,
Niall
I would love if you were able to guide me in the right direction with some of my queires.
I initially read about Lease Options as a way of producing Positive cash flow IPs over a year ago. However only in the last 2 weeks have I revisited the subject and would appreciate any input you could provide.
I will explain our (my wife and I) situation first.
I am from Ireland and followed my now wife back to NZ after meeting her in Dublin.
We puchased a house in Lower Hutt in Oct 04. We spruced it up a bit and lived there untill we married in Sep 05. We rented the house out, on an year contract and went back to Ireland till Jan this year.
There is roughly $50-60k equity in that property now.
I have read up alot of info on Lease options mainly from others experiences over the last week, including some snipets on this forum.
My understanding of Lease Options are open to correction and I would welcome all input.
Step 1:
Finiding sutiable tennant to work with.
Step 2:
Finding the property that meets their needs and is within their price bracket.
Step 3:
Get all relevant Finance and Tax issues in place. eg, loans and correct company structure. (could probably be step 1 also)
Step 4:
Agreeing lenght of option, up front option fee, weekly repayments and future selling price.
The above steps are pretty basic and boiled down. From reading this forum and others I now realise I may have to open a trading trust registering for GST, as opposed to a LAQC as my Intent is to Sell the property at the outset.
This process requires the help of an accountant and a solicitor familar with the required contracts - correct?
I would love to meet anyone in the Wellington region who has experience in Lease Options as I am quite excited as to the prospects this strategy could have.
If you can fling some personal experience my way I would appreciate it.
If there is anyone in Wellington who would be willing to meet and share their experiences with me, would be great. I am partial to a bit of air travel also so could meet anywhere in NZ with people who could share their understand of this process.
I will be going to the WIPA meeting this month for some first hand experience also.
Looking forward to your replys.
Rgds,
Niall
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