Suggestions for selling? WRAPS?

[coldfire]

Now i saw another post up whether WRAPS are illegal, and it is being investigated in Perth.
Again i could be wrong but as far as i knew it was only SA this was illegal?

Okay more to the scenario, i have a 3 bedroom, 1 bathroom house, it is in Seaford VIC,

I recently purchased it in Nov 2008, to get the FHOG. (on that note, i was 1 week too early and didnt get the larger grant).
Now, it is coming up to the 6 month period, so i am organising moving back home with the folks.

When it comes to what to do, doing the basic maths, either a rent to own, or just straight out rent comes to mind.
I understand that if i just rent it, I have the option of selling it at a later date with more growth. However getting more cashflow now is more my goal.

Has anybody here got any specific information they would care to share when it comes to wraps. I have done a few basic searches around the net, and read a little bit, just still unsure as to if this is the best way.

Again thanks for taking the time to read this, sorry for the rambles, and ANY POSITIVE input would be appreciated.

Looking forward to your replies

 

[Propertunity]

When it comes to what to do, doing the basic maths, either a rent to own,

This is essentially 'selling' the property. Why would you want to sell after owning for 6 months? My guess is that you extract some small CG, minus REA commissions + get the FHOG out in cash. Seems like a lot of work for not much cash. And you lock yourself out of future CG forever. What the? On top of that the types of ppl interested in a wrap or rent-to-own are usually credit impaired in some way. Then you have to find them, interview them, do a wrap mortgage, repossess if they default on rent, onsell the wrap mortgage to another lender to get out of it yourself at some point - in this credit environment?

or just straight out rent comes to mind.

Makes the most sense to my way of thinking.

However getting more cashflow now is more my goal.

To do what with this cash flow? To quote old ppl: Get a haircut and a job (OK you probably have a job or you wouldn't have qualified for the loan in the first place)

Has anybody here got any specific information they would care to share when it comes to wraps.

Try a search on "wraps" or "Otton" on here for some real world experiences.

 

[coldfire]

I was more thinking of just the difference in interest i could charge versus what im paying. Esentially i was picturing 1.5-2.0% above market rate, and people who are credit impaired i would have imagined would pay this?

 

[Propertunity]

I was more thinking of just the difference in interest i could charge versus what im paying. Esentially i was picturing 1.5-2.0% above market rate, and people who are credit impaired i would have imagined would pay this?

OK understood......so for a couple of years you get the cashflow you are seeking IF your credit impaired tenant/purchasers keep paying (and their history shows they had a problem doing this previously). BUT assuming all goes well you still end up selling this place to them and you end up with no asset.

If all you did this for was cash flow there were/are much easier ways without all the hassle you'd be going to IMO.