Reply: 1.1.1
From: Ian Findlay
I accept that anything on this forum are personal suggestions only and
nothing is construed or taken as advice etc.
So how about it? If you feel hesitant about posting on the forum pleas email
me privately at
[email protected].
All suggestions appreciated,
Ian
----- Original Message -----
From: "propertyforum Listmanager" <
[email protected]>
To: <Recipients of 'propertyforum' suppressed>
Sent: Thursday, July 25, 2002 9:21 AM
Subject: Investing for children
> From: "Michael G" <
[email protected]>
>
> Hi again,
>
> Just had another thought....
>
> 10 years hmmmm....
>
> Could almost pay off a mortgage in that time.
>
> I option, could be to have a long term lease/option/wrap with someone.
Ideally with a retiree who is interested in cashflow (to support their
retirement).
>
> Idea being you offer to "rent/lease" the property for 10 years. Where the
residual or balance purchase price is zero or very small.
>
> Now if you looking to invest say $50/wk for you child, then you could
"buy" something that is small, let's say something that rents for $120/wk
>
> if you're willing to pay $50, then you could discount the rent to $70, to
guarantee a tenant.
>
> Or the $50 could be put towards a home improvement fund to fix the place
up (add value).
>
> In theory over 10 years, the mortgage is reduced and the value has
increased.
>
> Idea here is you obtain 100% vendor financing.
>
> You'd also need to speak with a solicitor, 'cause I'm thinking that if you
set up an agreement early (ie an option or something), then you could have
the tax benefits of the property for 10yrs, then exercise the option (or
whatever) later, and only pay the stamp duty for the original purchase price
(or agreed option price), maybe there's a neater way to do this?, gifting
into a trust perhaps?
>
> I'm sure there's a lot more ideas that can be generated by forumites here,
but remember, nothing you read here is advice, they are just the views,
opinions, ideas of fellow investors here to help share their thoughts and is
in no way to be taken as legal or any other kind of financial advice. And as
always see a professional advisor before proceeding.
>
> Regards
> Michael G
>
>
>
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