The Guardianship Housing System
The 'Guardian Right' Learn how you can benefit as a tenant, owner, investor and retiree using the Guardian Right system.The Guardianship housing system was designed as a housing system that reduces the cost of housing using a new form of ownership that separates the house from the land., and we can use this over existing properties' or on vacant land where the Guardian builds the house without having to own the land, unlocking investor behaviour through new market options that align with societal needs.
The Guardian Right Terms Agreement initiates property owners to separate a property into two parts; one which is contracted to reduce in value, and one which uses market forces and inflation. What Guardianship does differently is that it uses a 'Guardian Right' to define the appurtenances, the 'bundle of fixtures' to define a specific and physical share of the property rather than using the conventional and complicated numerical share as used by co-owners to a landholding.
Guardianship cuts out the middle men which push costs higher, providing society with a new housing standard that holds a moral compass pointing north. Society finally has a way forward against the growing debt-based cost of housing increases and cost-of-living crisis. Not only is a house cheaper without the land cost, but its depreciation drives this cost lower and lower for the benefit of all.
Using a Guardian Right on vacant land, uninsurable property, and derelict houses, opens the door to a tenancy investment which modifies how we think about housing, and provide investor choice to invest upward or downward, providing society with choices we have not had before.
What is a Guardian Right?
A 'Guardian Right' is a property share covering the appurtenances, the 'bundle of fixtures' on a property, but not a co-owner of the land.
The Guardian Right is a depreciating asset losing 10% p/a, and the Landholder uses Call Options to buy back the share for a fixed price.
A Guardian Right is 'restricted' in 4 ways.
01
It is to be predominantly or exclusively occupied by the Guardian.
02
It holds a fixed value reducing by 10% per annum calculated monthly on the 1st day of each month.
03
It has a recurring Call Option where the landholder has an option to buy it once every 10-years.
04
And the Guardian is responsible for the repairs and maintenance of the residence, outbuildings, fencing, roading, gardens and trees.
The System
The Guardian Right provides with clarity what the Share of the property entails, where the Value stems, how the Right is future valued, and what the responsibilities are, to ensure there is no blending of the shares or grey areas.
Guardians hold responsibility for the properties repairs and maintenance which includes the residence, outbuildings, fencing, roading, services, gardens and trees, and the water rates, while the Landholder is solely responsible for the land rates and taxes, government charges and contractual agreements over his holding.
This form of split ownership is similar to a leasehold type tenancy but without rent or a lease in place.
By breaking a property in two, landholders can now sell the Guardianship part of their holdings to offload debt or to use some of their own equity without any institution using 'snag and catch' tactics of reverse mortgages to take the home using compounding interest and fees, and guardians can save money while occupying the property because they have a value to sell when they leave.
Guardianship allows vacant land holdings to be developed by a Guardian who only need to finance the build, without a deposit, creating demand and opening up stuck supply. Yes the landholder gets the equity gain, and can sell off the land at anytime but the Guardian gets the property for 10-years for a lesser cost than paying rent over the same period.
Uninsurable houses and derelict structures are also provided a new lease on life using the Guardianship system, where investment can replace insurance, enabling people to do up these structures for habitation each time a 100 year weather event hits home.
See the Guardian Right as a tenancy paid for through depreciation rather than rent, operating like a new car which gets cheaper by the day, where investors profit by charging interest, and the car or house in this instance always holds a residual value...
Rules and Regs
The Guardian Rights' value stems from the CIV (capital improved value) of a rates notice, and sellers can include a registered valuation to increase this initial value if required.
The rates notice and valuation if any must be signed by a JP or solicitor to authenticate ownership of the property and the Value of the CIV before a property can be registered into the system.
Once this value is approved and set by the Registry, the value of the 'Guardian Right' begins depreciating in value by 10% per annum calculated monthly on the 1st of each month.
This creates the fixed value for each and any 'Guardian Right' exchange.
Vacating Guardians may sell their Right at any time for the fixed price based on the depreciation schedule, and the landholder is required to give 3-months' notice if they want to purchase the Right through the Options Agreement. Vacant possession is to be given at the time of sale.
Investors are guided to fix the interest for the entire term and use straight-line loan calculations which reduce the principal evenly over the yearly term, use a 50-week year and a 10 year (500 weeks) maximum term to protect borrowers and lenders with transparency.
Further protection is to use market rent as the upper limit for repayments to protect the investment and the Guardian from being unable to pay.
In Comparison
If we compare a $600 p/w rental with a 300k Guardian Right over 10-years, the cost is comparable but this is not the full cost or the full benefit.
Further costs or benefits are specific to the type of user you are, and when we add a 10 year time frame which goes through a boom or a depression, then more and more costs or benefits are realized.
In the year 2025, the American hegemony is falling because the interest on the debt can not be equaled by what the country produces, and to hold power they have tried to have a trade war with everyone and this has driven everyone to ditch the dollar and trade safely through BRICS. What this has to do with Aussie houses is that our dollar is a subsidiary of their dollar and if they want their debt back, they can bail-in our property, cash, shares, and gold if they choose to, and this I witnessed first hand losing 3 million in the GFC when the bank changed its rules for its benefit. The Guardian Right market is outside of the reach of the bail in laws and although property such as land can be seized, the Guardian Right Deed is proof of occupancy protection.
Comparing rents versus rights in a crash, we begin with rental investments returning $600p/w with a 300k debt payout. The landholder is still worth 600k on paper with no debt and cant lose this property in a bail-in, and the order of the bank to end the tenancy affecting the tenant would be obsolete, as the tenant became the Guardian, owner of the fixtures and occupancy of the land. Understanding the financial world allows us to mitigate risk and protect ourselves from what is coming. In a boom, the property could have more than doubled in value in 10 years and allowed the landholder to borrow even more money.
Specific cost increases for the guardian are the repairs and maintenance of the property, however the benefits of no inspections, renting rooms, having pets and so on, as well as getting paid for the Right when they leave in my opinion far outweigh the negatives of this change. And when we include interest if we borrow for the Right, the repayment for the whole term of the loan will not change, where rents could have increased 20 times through 6 month intervals.
Whatever the choice, both systems are now available where we can mix and match, buy a home outright or in steps, or simply own something and be happy for a time.