I’m glad the information helped!

We have connections with two different Service Provider organisations that we can recommend:

- Aviate source properties from selected developers and conduct a thorough review on potential properties (including obtaining independent valuations) and then pass on possible properties to their members. Membership is free. We have bought property through Aviate ourselves and have been very happy with their service. We are affiliates of Aviate. You can see the details of their latest properties by clicking here.

- 21st Century Property Direct provides a similar service. This service is aimed at Homestudy members (but is open to non-members). Membership includes training as well as the property sourcing services. There is a fee for membership (reduced for Homestudy members). More details are available here.

Ian

Wraps are based around having one mortgage “wrapped” around another one.

Rent to own is (usually) achieved through a rental agreement and an option to buy agreement connected together - usually referred to as a Lease Option.

Sandwich leasing is (usually) where one Lease Option is wrapped around another one. So you purchase the property with a Lease Option and you on-sell it on the same basis.

For a Wrap and a Rent to Buy, you would buy the property in the normal way but on-sell it in a different way (either by acting as the bank or by giving a Lease Option). For a Sandwich Lease you would also buy the property using a Lease Option.

So, technically, these are different things. However, the goal of all of them is similar. And that is to enable somebody to purchase a property when they are not able to do it in the “normal” way. And, as the investor helping somebody to do that, you make some money along the way.

There are pros and cons of each method. But I do not believe that any one method is actually better than any other - they are just different.

In Australia, there are some restictions on Wraps. For instance, I believe that South Australia does not allow them. I do know of people who Wrap properties in New Zealand - including one lady who has wrapped over 500! I’m afraid that I know less about the other ways (we wrapped properties ourselves).

My suggestion would be to go to a good property solicitor near you and talk it through with them as they will be able to guide you better on what will work best where you are.

I am happy to chat to you about it on the phone if that would help - just give me a call on 09 889 2055 (evenings are the best time to catch me!).

I hope that helps.

Ian

This is a great question …. and I can only respond based on what we were taught some years back when we first started out on turning our “financial” lives around.

It goes like this:
1. Automatic Savings Plan - invest 10% of your gross income via your Automatic Savings/investing plan
2. Debt Elimination Plan - invest 10% of your gross income via your Debt Elimination Plan
3. Charitable Giving Plan - contibute 10% of your gross income via your Chritable Giving Plan
4. Debt Avoidance Lifestyle Strategies - implement these to minimise expenses
5. Party - spend the rest and enjoy it!!!

If 10% on each of the first 3 plans is too much at this stage then reduce the %amount evenly across them.

You will need to work out what is affordable to you as a family, so this is a personal thing but we were taught to evenly allocate the funds across Savings, Debt Elimination and Charitable Giving.

Your post has just prompted me to think about Debt Avoidance Lifestyle Strategies. I think I might go and write something about these in the next few days as I don’t think we have really covered these so far!

I hope this makes sense to you and if you have any more questions then drop us a line.

Kind regards
Liz

Thanks for the feedback! I’m really glad to hear that Konrad’s interview helped.

Jamie does have plans to grow 21st Century globally. A 21st Century office was opened in Auckland at the beginning of the year so this is a start in New Zealand. I do not know of any firm dates for future growth I’m afraid.

Ian

Great to hear that you have read The Richest Man… and more importantly taken action on something you learnt from it.

Definitely check out the other books … I think you’ll get a lot out of them

Keep us posted on what you read,
Kind regrads
Liz

Are property wraps the same as “rent to own” or “Sandwich leasing”??

This strategy is what I am really interested in getting into and would like to know a little bit more and how it can be implemented to NZ law, so that I can get started as soon as possible in Auckland NZ?

Thanks
Regards
Jenny

The Richest Man in Babylon is a book that I have read and I have got to tell you that this is an amazing book and is the reason why I have been saving 10% of my salary as a first priority. It is based in the last 3k years but the principals are definitely the same as today. So I totally agree with you Liz on having this as one of your top 5 books.

I am yet to read the other books that you have suggested. I have heard of Robert Kiyosaki’s book but never got around to reading them. However, I have already read Kim Kiyosaki his wife’s book RICH WOMAN twice and I love it. So I will definitely read the other 4 books.

Thanks Liz
Regards Jenny