New investment strategies are formulated on the basis of;
Options - sell high / buy low - let the landholding grow no more renter problems
Protective use - split the costs and responsibility - two entities - financial safety
Lump sum debt reduction - better LVR greater borrowing power
Advanced knowledge of profits - mitigate risk - no repairs or maintenance
Straight line loan calculations - guardian owners transparency - fixed value
And whether to use one market or mix the two - grow your super with less debt
Lenders in the system will follow simple straight line loan calculations, fixed term interest, a 50-week year, a 500-week (call option) maximum term, and calculate interest based on a market rent equivalent. When lenders and borrowers use market rent for the property as the upper limit for a repayment, and set the repayment against this, the risk to the borrower and the investor is mitigated not including the Guardian Right depreciation and the debt reduction keeping pace with each other.
Fixing the market to reduce at 10% per annum calculated monthly, ensures users of the system an exact figure at each sale date, allowing profits and costs for all parties to be known in advance. The systems terms and conditions protect the Landholders, Guardians, and Investors which function to protect a live-in Guardian who uses his owner rights to do most things, and who is only penalized if the property is used 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 how owners, renters and investors could use this system to their advantage.
"Say I am a developer and buy 2 or three properties which I want approvals to tear down in 5 years and rebuild something bigger and better. I would set the first anniversary date of my Right to the same date 4 years and 11 months, where I could reduce my holding cost until the project was ready to commence, and at 4 years and 8 months I exercise my option to end the leasehold and buy it back. 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 have no tenancy issues."
"Say I am a landlord who is sick of tenancy problems and government rule changes, so I sell the right to my house, and in doing so I free myself as I am no longer obligated to pay for any maintenance and management concerns. All I need to do is set the option date to buy the house back at the depreciating fixed price and forget it"
"Say, I have plenty of debt I want to reduce, and rather wait the 10-20 years and use weekly rent to help pay it off for me, 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 to save on taxes."
"Say, I own an unoccupied flood affected house, and insurance won't pay out so I can't afford to make it livable again. I can now sell it to someone else who will fix up at their expense, by setting up a Guardian Right over it. I could for myself, borrow investment money to fix it now while protecting the investor, and then relinquish the right after the investor has been paid back."
"Say, I own land without a home and can't afford to build, so I sell the Guardian Right to a tenant for 5k who can afford to, where the contract price to build new, is agreed to be the start price where the Right begins to depreciate from there. In this scenario, the Guardian covers the cost, and the landowners value increases. Who chooses what can be built should be negotiated first."
"Say, I buy a property in my Self Managed Super Fund, which i want to co-own with myself, where my super fund will choose never to take up the option to kick me out. In this scenario, the super fund could own the land, and I would own the Right, but is this an arm's length transaction when no rent is being paid?"
"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."
"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."
"Say I am a tenant stuck in the rental trap and I have no savings. This system can give me 100% funding which is still good for both borrower and investor in this scenario as the repayment would be equal or less than the market rent, and because we now own the Right, we can rent rooms which we couldn't as tenants, and as Guardians we sell and walk away with money in our pocket when it is our time to leave."
"If you are a true capitalist, then you can ride this new system down while expecting the old system to increase finding a balance where you can cash in on reuniting properties and putting them back on the open market."
"Community land should use these rights to enable bad eggs to be removed from the community in question, and because members like the idea but not the workload or others in the group, they can also sell out at any time without being prompted easily because the price continually falls. This freedom enables good ideas to stay that way, and the use of the Karmic credits can give a community a trading edge to buy and sell their time or meat and vegetables without governance."
"With insurance companies not paying out or taking years to fix a claim, a Guardian Right can use the peer-to peer investor funds to bypass insurance adjusters altogether. A property owner can set up a right, short or long term, and use the peer-to-peer money to rebuild each and every time it floods, and the only way you can be evicted from your own home is if the peer-to-peer money goes unpaid, revoking your Guardian Right where the property is placed back on the market. Either way, people can get back into these properties in weeks rather than years."
For farmer succession, a Farmers Right could be used over farm houses, the back paddock, machinery sheds and the like, where to keep the farm intact, siblings keep ownership while the sibling staying on as the farmer is given 10 years to pay out one siblings percentage which gives him enough equity to borrow for the rest of the farm and cover the other siblings. Those waiting, could receive a greater value on their percentage as the farm should 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 value.
A Retail Right could 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 privilege. 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 the next retailer.
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 Australia weaves the Manaian Way philosophy throughout its systems to address poverty, homelessness, and debt, in an attempt to elevate humanity, protecting the people and the planet with a goal of free basic needs.
Here are some ways to contribute to this quest:
Bring your companies, nonprofits, community organizations, and other business expertise to the table. Collaborate on projects related to housing, energy, transport, communications, farming and food security, and education to create positive change.
Businesses can align with EmpowerUs to fill the gaps, such as with a solicitor firm to process the Registry forms and monetary transactions between clients. Maybe you have connections through the housing industry that can be beneficial to both parties.
Education and practical applications provide the content required to advocate for policies that align with EmpowerUs goals. Creating legislation and supporting legislation that closes the gap between rich and poor through freedom, equality, safety, security, stability and peace would be helpful.
Evaluate supply chains for ethical practices. Support suppliers that prioritize smaller family businesses, regenerative systems, sustainable practices, and community well-being. By focusing on social impact, we can rebuild society from the basics up.
Supporting Manaian Way principles into social programs provides managers with a real choice that can permanently alleviate many societal issues. No more bandaid fixes or affordable housing summits. No more people living in cars and tents, and no more charities profiting from homeless and hunger.
Moral business systems are those which create products that last and have a free use period. Policies and business models that align with the Manaian Way can impact society enough that triggers creating crime, family violence and child abuse may be removed.
Together in Unity, we can change the world when we have a decent blueprint to work to, and the Manaian Way shows us that we only need to implement 3 new systems for this to happen.
Our final success will depend on widespread global adoption and collaboration, but we dont have to think this big just yet. lets just focus on one family first then one community at a time. cheers.