Evolving Strategies - StrataBuilding affordable tower developments to prioritize existing service networks using APG, is a new concept. Instead of selling off the units to finalize the development, the landholder keeps the Unit Titles, preferring to sell Guardian Right's to cover the cost of the build. Think about how much more profit can be made, and how the equity can help finance another new development, and who gets affordable properties to live in? Lifestyle communes, Retirement villages, and Community land trusts can all be advantaged if they include APG as part of their business model.
Hedge your Housing position 2026 - 2036The purpose of hedging is to limit loss while holding a position to profit. Guardian Right Call Options allow the landholder to relinquish the phyical use and responsibiliy of property - limits front on risk, allowing hedgers to batten down the hatches as the US hegemony crashes, while we hang on to the debt-free titles for future capital gain should the property market stay unaffected, similar to share trading to limit downside risk should the land value decrease during this period.
Evolving Strategies - PrivatePrivate property when incorporating APG as a strategy, allows titleholders to partner with a Guardian to develop vacant land, or fix up derelict and abandoned property for mutual gain. Family wealth can hold the titles and protect siblings, now reponsible for their own Guardian Right, and retirees can downsize without losing the capital gain. to be shared in will when the retiree passes.
Evolving Strategies - Defence Force and SuperannuationDefence force housing could use APG in their models to provide low-cost housing for veterans and veteran families, forgoing call option rights until the time is right. The increase in equity over time can provide the gains needed for more vet housing to be created when neccesary. Similarly, Self Managed Super Funds may be able to own the property title, while the individual owns the Guardian Right, of which the SMSF foregoes call option rights until the Guardian can afford to buy the title as with all super investments. This will need to be clarified - I am not a finacial advisor.
Evolving Strategies - InvestorsInvestors invest in property for the capital gain and renters are used as a tool to help take care of the debt while the investor waits for the capital to balloon out to get rich, however this is not a 100% certainty and negative gearing is a tool we can use. Banks get the 100% certainty, taking lump interest using amortised loans, selling the low doc loan responsibility to super funds using CDOs, and they have first dibs over the title to take the asset if and when they choose. Investors can become banks and do this privately if they wish, providing investors with more ways to invest in property assets.
Evolving Strategies - Charites and Housing ProvidersAPG offers charities and housing providers a fresh new approach to create low-cost living arrangements without the maintenance issues. While the private market chases guardians to profit from, charities can grow assets while providing affordable housing and short term emergency housing, could team up and provide guardianship to families falling through the cracks.
APG offers strategies and opportunities that benefit families, lenders, tenants, property owners, investors, retires, and developers.
New strategies should be formulated on the basis of;
Call Options - and Intention
Maintenance Responsibilities
Capital Gain
Fixed Market Profits - Mitigate Risk
Interest Based Returns
Protection from Global instability
When lending for a Guardian right, lenders are guided to follow simple straight line loan calculations, use fixed term interest, a 50-week year, and a 500-week maximum term that finishes when the Call Option is due. Lenders can provide transparency and protection to every borrower and lender by using market rent for the property as the upper limit for a repayment. Lenders are guided to set the repayment below this, which protects both the tenant and the investment, in line with the Guardian Right depreciation and the debt reduction.
Fixing the market to reduce at 10% per annum calculated monthly, ensures users of the system an exact figure every time the Guardian Right is sold. A fixed market allows profits to be known in advance and this provides certainty for the guardian, titleholder and lender. System terms and conditions hold the guardian responsible and protects the Guardian with owner rights to do most things, except using the property as a rental. Investment terms also allow the registry to pass on the debt to the next occupier for ease of transition, should this be required.
The following examples show the basics of how eco-villages, unitholders, property owners, developers, renters and investors could use this system to their advantage.
"Say I am a developer and have bought 2 or 3 properties which I want to rip down in 5 years and build a multi-unit complex. I can use APG to set the date of my Right to say 4 years and 11 months, where I could reduce my holding cost until the project was ready to commence. In this scenario we are selling a certain time period rather than renting it, and the owner of the Use of the house has the responsibility to maintain it, so we set and forget and have no tenancy issues to contend with."
"Say I am an investor who wants capital gains but is sick of tenancy problems and government rule changes. I simply setup a guardian right to my house, sell my debt and the property to the guardian, and in doing so I free myself from the bother, help some mum and dad lender, and provide affordable housing."
"Say I have plenty of debt I want to reduce, and rather wait the 10-20 years and drip feed weekly rent into the repayments, I sell the use of the house for its market value and take the sale proceeds to pay down debt and then whatever is left, I negative gear the land to save on taxes."
"Say I own a flood affected house, and insurance won't pay out so I cannot afford to make it livable again. I can either sell it to someone else who will fix up at their expense, or I could borrow the money myself to fix it up and move back in using a development Right. Insurance companies no longer offer policies in flood zones, so we can save money and use investment money every time our home goes under."
"Say I own vacant land and can't afford to build on it, so I setup and sell the Development Right to a tenant for 5k who can afford to. The contract price and completion date of the new build, are approved as the new dates and value after the project is complete. In this scenario, the Guardian covers the cost of the build, and the landowners equity increases. Who chooses what can be built and where and by whom is also negotiated first, after which the property is enjoyed by the guardian until a call option is exercised or the guardian sells."
"Say I buy a property in my Self Managed Super Fund, which I want to co-own with myself. Do rules allow this because if this is possible, my super fund will choose never to take up the option to kick me out. In this scenario, the Super fund owns the land which continues to appreciate in value, and I would own the reducing value Right, but is this a long enough arm's length transaction?"
"With housing's outgoings of maintenance, management, taxes and duties on the rise, many properties are break even, even with such high rents. The gamble that all properties go up in value can now be offset by selling the CIV, so we can still make that Capital gain while mitigating risk, and we can be free of the bureaucratic red tape."
"For those who think the world is unsafe, then protecting the Use of your property against political changes makes sense. A Deed of Right protects us against a world where we have been told that we will own nothing, and we will be happy. The idea to protect family in troubling times, also creates scenarios where the patriarch holds the land portion while the kids just pay off a small loan covering the homes."
"Say I am a tenant stuck in the rental trap and I have no savings. APG is said to be in the realm of personal property which changes the rules on borrowing and can provide 100% funding if necessary. Provided the repayments are the same as market rent, it is still good for both the borrower and lender, plus because we are now owners, we can rent rooms to help with repayments if we have to."
"If you are a true capitalist developer, then the strata highrise model offers a lot more bang for your buck and considerable tax advantages. You can also ride this new system down while expecting the old system to rise, finding a balance where you can cash in on reuniting properties or splitting properties when it suits."
"CLT community land trusts cannot remove bad eggs from the community in question through the generic leasehold model but they can with APG. Community group members start well but later on, some members like the idea but not the workload, and group members begin to bicker and affect the peaceful balance. The flexibility and practicality of a Guardian Right allows bad eggs to sell without prompts, but also allows the landholding to buy them out to move them on. This freedom enables good ideas to stay that way."
"With insurance companies not paying out or taking years to fix a claim, a Guardian or Development Right can use peer-to peer investor funds to bypass insurance adjusters and excessive premiums altogether. A property owner could create short or long term debt, through peer-to-peer money to rebuild each and every time it floods. The only way you can be evicted from your own home is if the peer-to-peer money goes unpaid, revoking your Guardianship which places the property back on the market. Either way, people can get back into these properties in weeks rather than years."
For farmer succession, a Farmers Right can be used over farm houses, the back paddock, machinery sheds and the like, with a purpose to keep the farm intact when the patriach dies. Siblings would hold these rights, protecting the farmer sibling who is to be given 10 years to pay out one siblings percentage, providing him enough equity to borrow for the rest of the sibling debt and buyout the other siblings. Those waiting, could receive a greater value on their percentage as the farm will be revalued prior to being paid out to make it worth it for those who waited. A Farmers Right would not reduce @10% p/a like a Guardian Right does, but instead increase or decrease with the farms latest value.
A Retail Right can be used in a commercial application to allow a tenant the right to sell out if the business is no longer viable without the landlord needing any notification, as the landlord has already been paid for the call option use in advance. Problems with unviable tenancies and business owners vacating in the night leaving the property in a pigsty, will be unlikely with so much skin in the game, and as the tenancy reduces every year, the cost to a new tenant will be considerably less, so more care will be taken to on-sell the tenancy to another.
In all of these examples, we are able to optimize new opportunities, reduce debt, reduce costs, and limit courtroom appearances as well as drive prices down for those today and for the generations to come, making it cheaper for the next purchaser to buy-in.
Again, we are not licensed to offer financial advice, but we are allowed to give factual information in regard to our products.
EmpowerUs developed the Manaian Way, an innovative needs-based philosophy designed to address poverty, homelessness, and debt, and ensure that everyone's basic needs are met. Businesses in many industries can collaborate as players in support of the Manaian Way initiative. Here are some opportunities to team up through:
R/E agencies that offer clients APG as an option and sign up to a royalty program when integrating Guardian Right knowledge into topportunistic selling programs. By focusing on social impact, estate agents can provide a greater benefit to their community.
Partner with local nonprofits, community organizations, and other businesses to collaborate on projects related to housing, energy, transport, communications, food security, and education. Pool resources and knowledge to create positive change.
Law firms can offer a legal expertise to APG clients looking to understand the legal implications of property guardianship. Law firms would be required to process the paperwork and transfer property funds through the firms trust accounts.
Development projects which incorporate APG in thier contracts on ready to build land not specific just for the needs of Guardians, but for the project developers and state actors who are actively seeking affordale housing projects to be built.
Use guardianship solutions to innovate housing advantages. For example, building APG cabins in an eco village specificly for the property owner or group to incorporate the build cost of the shops and sheds to be covered by the guardian sales.
Advocate for policies that align with the Guardian Right Registry. Support new superannuation legislation that allows self managed super funds to own land, and the individual to be the guardian of the home.
Disclaimer: EmpowerUs Australia is not a financial or legal institution. The information provided on this website is designed to inform post and future clientele with as much information as possible about the inner workings and outer applications of the APG system to the best of our ability.