Well I guess the immediate family members got sick of standing around waiting for the wife and I to come-a-cropper with our high risk strategy. We were all constantly reading about the dreadful state of the economy, so naturally thought it was a great time to buy again.
Probably figured that we were onto a good thing and so the family decided to join us with our latest purchase. It's the first time we've ever gone into a deal with anyone else, but if you can't help your family....what's the point of this silly game we play. So far, it has been great, we are all more than happy.
The sales contract has been agreed and signed off, but isn't unconditional as we are still scratching around like chooks trying to get someone to fund 106% of the purchase price. But a small detail.
We are all fairly pleased with the selection, as there is nothing to do and is considered fairly low risk (by us who consider these supposedly high risk things to be low risk). It is a concrete box way up in the air. It's strata so we don't even own the concrete box. I'm happy about that.
Lease is all signed up for a reasonable time, with appropriate clauses all in favour of the Landlord, decent reviews agreed upfront and ratchet clauses to make sure the rent never goes down. Tenant is one of those where a Minister of the Crown has signed it, and the Treasury are the backup.
The occupiers are mostly conservative old gentlemen who walk slowly and wear wigs and gowns.....so not expecting too much in the way of damage or wear and tear.
The Lease dictates they must pay for everything and must do everything, just the way we like it. I'm not expecting the Tenant to renege on their commitments. The family members are very much looking forward to sitting back and collecting the excess cashflow.
With the only expense being our interest bill, the excess cash from the nett rents will immediately put a little bit of money into our pockets. This obviously ratchets up from there as the years progress. Our biggest responsibility is trying to shuffle it around so we don't pay tax on it. Bit of circular nature that actually.
It'll be good to receive a bit of revenue off the Govt for a change. The parents are looking forward to that. You can be sure that your hard earned taxes are going to a worthy cause.
Next time we need to bother with the property is Sept 2020. Sounds good to us.
Cheers and best wishes,
"Hot nuts."
Probably figured that we were onto a good thing and so the family decided to join us with our latest purchase. It's the first time we've ever gone into a deal with anyone else, but if you can't help your family....what's the point of this silly game we play. So far, it has been great, we are all more than happy.
The sales contract has been agreed and signed off, but isn't unconditional as we are still scratching around like chooks trying to get someone to fund 106% of the purchase price. But a small detail.
We are all fairly pleased with the selection, as there is nothing to do and is considered fairly low risk (by us who consider these supposedly high risk things to be low risk). It is a concrete box way up in the air. It's strata so we don't even own the concrete box. I'm happy about that.
Lease is all signed up for a reasonable time, with appropriate clauses all in favour of the Landlord, decent reviews agreed upfront and ratchet clauses to make sure the rent never goes down. Tenant is one of those where a Minister of the Crown has signed it, and the Treasury are the backup.
The occupiers are mostly conservative old gentlemen who walk slowly and wear wigs and gowns.....so not expecting too much in the way of damage or wear and tear.
The Lease dictates they must pay for everything and must do everything, just the way we like it. I'm not expecting the Tenant to renege on their commitments. The family members are very much looking forward to sitting back and collecting the excess cashflow.
With the only expense being our interest bill, the excess cash from the nett rents will immediately put a little bit of money into our pockets. This obviously ratchets up from there as the years progress. Our biggest responsibility is trying to shuffle it around so we don't pay tax on it. Bit of circular nature that actually.
It'll be good to receive a bit of revenue off the Govt for a change. The parents are looking forward to that. You can be sure that your hard earned taxes are going to a worthy cause.
Next time we need to bother with the property is Sept 2020. Sounds good to us.
Cheers and best wishes,
"Hot nuts."
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