Wrap own house?
- Thread starter jomik
- Start date
Hi jomik
You can wrap to anyone you want, but if it falls over and you didn't do some checking first, you could end up in big trouble.
Personally I always check their income situation, their deposit, ask the buyer to get credit checks done, some people request a police check. Obviously if they're renting your house you don't need to check with their landlord!
I second aceyducey's suggestion to check out www.financewraps.asn.au
You can wrap to anyone you want, but if it falls over and you didn't do some checking first, you could end up in big trouble.
Personally I always check their income situation, their deposit, ask the buyer to get credit checks done, some people request a police check. Obviously if they're renting your house you don't need to check with their landlord!
I second aceyducey's suggestion to check out www.financewraps.asn.au
Hi,
Actually the first question you need answered is why do you want to wrap the house?
Is it because you want cashflow, or are looking for these people to refinance you out?
Have they asked you if they can buy the property?
This will determine strategies and timeframes.
Are they looking to refinance you out in a year?
Are they wanting the chance to eventually own the property?
Also what is the risk reward, because this would be a commercial transaction you would be required to comply with the consumer credit code if you were to use an instalment contract.
Complying with the Code means a properly documented contract and the need for on-going compliance.
This is what others mean about making sure it all holds together, you would not want to go through all this work to have it fall over because of some issue.
Best do you your homework, make sure your tenants are in a financial position to take advantage of this opportunity and that you have the means to service their needs properly.
Regards
Michael Gruber
Actually the first question you need answered is why do you want to wrap the house?
Is it because you want cashflow, or are looking for these people to refinance you out?
Have they asked you if they can buy the property?
This will determine strategies and timeframes.
Are they looking to refinance you out in a year?
Are they wanting the chance to eventually own the property?
Also what is the risk reward, because this would be a commercial transaction you would be required to comply with the consumer credit code if you were to use an instalment contract.
Complying with the Code means a properly documented contract and the need for on-going compliance.
This is what others mean about making sure it all holds together, you would not want to go through all this work to have it fall over because of some issue.
Best do you your homework, make sure your tenants are in a financial position to take advantage of this opportunity and that you have the means to service their needs properly.
Regards
Michael Gruber
