New investment strategies are formulated on the basis of time;
Use Call Options to Sell now, Buy low later - Use Time to your advantage - reduce debt now
Lump sum debt reduction - Negative Gear?
Sell the occupancy - pass on repairs no maintenance to the Guardian
Move away from the tenancy act.
Grow your Equity - Sell a Development Right over vacant land, derelict, or flood affected property.
Let the Occupier pay for these costs.
Advanced knowledge of profits - mitigate risk -Calculate Interest - Set repayments below market rent
Personal not real property
Straight line loan calculations - transparency - 100% finance - Deed of Right
Set repayments to benefit lenders and borrowers
Protective Use - hold Land in Family Trust - Give family members cheap or free occupancy
Family member as Guardian
Lenders in this system will follow simple straight line loan calculations, fixed term interest, a 50-week year, a 500-week maximum term, and use a market rent rate cap to give transparency and protection to every borrower and every lender. Ehical rules and moral values guide borrowers and lenders to set the repayment below this, which protects both parties as the loan reduces with the depreciating value, ensuring that as market rent stays high and the Right and Value reduces, many more tenants will be able to afford the property making it easy to sell.
Fixing the market to reduce at 10% per annum calculated monthly, ensures an exact figure at each sale date, allowing the profits of both parties to be known in advance. Terms Agreement provides transparent protections to Landholders, Guardians, and Investors which function to reduce the cost of housing. Live-in Guardians are protected unless the property is used as a rental. Investment terms also allow the Guardian Right Registry to pass on the debt to the next occupier for ease of transition, should this be required.
The following examples show how owners, occupiers and investors could use this system of time to their advantage.
"Say I have subdivided land into many lots and choose to provide Guardians with a Development right to build the houses at their expense. My overall subdivision increases in value as property values increase and I require less money overall. Time shifts the values where the house prices decrease, and I hold Call options to buy these when available if I choose. Will I sell the land or keep it?"
"Say I am a landlord sick of tenancy problems and government rule changes, so I create and sell a guardian right over my property and in doing so I am paid a lump sum for the term of occupancy (time) and 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 interest back at the depreciating fixed price when I want, and forget it."
"Say I have plenty of debt and rather than wait the 10-20 years to pay it off using weekly rent, I sell a block of time, pay the debt down, and negative gear what is left. I save on interest, save of maintenance and repair issues, and save on management and other costs. I can do this over all my rentals or just the most difficult ones."
"Say I own a flood affected property and insurance won't pay out so I can't afford to make it livable again. I can now sell it to a Guardian who will fix up at their expense by setting up a Developer Right over it. I could also do this for myself, borrowing investment money to fix it under terms to protect the investor, and then relinquish the right after the investor has been paid back."
"Say, I own vacant land without a home and can't afford to build, so I sell a Developer Right to a guardian for 5k who can afford to, agreeing that the contract price to build new is agreed to be the Guardian Right value on completion which depreciates from there. In this scenario, the Guardian covers the build cost, and the landowners value increases. Who chooses what can be built where must be negotiated first."
"Say I buy a vacant land in my Self Managed Super Fund trust which I pay for through super contributions. I can choose to sell a development right to myself because my super fund will choose never to take up the option to kick me out, and my cost will be just the value of the build. In this scenario, the trust owns the land, and I would own the Right, but is this an 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. Time offers many new strategies that benefit owners, guardians, investors and society."
"For those who think the world is unsafe, then protecting the Use of your property against political changes and banks makes sense. A Deed of Right protects the occupier against landholder bankruptcy when used wisely. Do we truly want a world where we have been told '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 occupancy, 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 trusts should use these rights to enable bad eggs to be removed from the community in question, and because new members like the idea of a working community but not the workload, they can also sell out at any time without being prompted. 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, say for 4 kids, a Farmer Equity Share Agreement could be used over farm houses, the back paddock, machinery sheds and the like, where to keep the farm intact, siblings hold equity while farming sibling is given 10 years to pay out one siblings percentage, which gives him enough equity to borrow for the rest of the farm and pay out 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 but instead increase or decrease with the farms value.
A Retail Equity Share agreement used in a commercial application can 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 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.
Partner with EmpowerUs Australia Pty Ltd to address poverty, equality, homelessness, and debt by ensuring that everyone's basic needs are met. EmpowerUs Australia is not a charity and as such, can create systems which can have a lasting and beneficial effect on society. All businesses can play a crucial role in supporting and adopting this initiative.
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