The Solution Group Corp has two models: IPP (Income Producing Property) & CASSA (off plan property), below you will find their typical payment schedule:
IPP (Income Producing Property)
This is property available now:
Purchase Price: $100,000
- On signature of contract (10%): $10,000
- Balance to pay 30-45 days approx: $90,000 + Associated Costs
This is property available off plan:
Purchase Price: $100,000
- 1st payment on contrac: $20,000
- 2nd payment on commencement of construction: $20,000
- 3rd payment after 60 days: $30,000
- Final Payment on completion (6-8months): $30,000 + Associated Costs
All funds paid are totally secure as they are held in an escrow account until completion.
- Reserve your property by depositing 10% (IPP Model) or 20% (CASSA Model) to the Title Companies (lawyer / solicitor nominated by the seller) escrow account in the USA. Please note this is non-refundable unless the property is not as stated (no encumbrances, lean etc). A Purchase Agreement will then be sent to you by your Attorney / Lawyer for signature, which then needs to be returned to the USA for signature.
- If you have purchased a Condominium or property on a new development with Home Owners Association (HOA) then your information will be sent to the Home Owners Association (HOA) in the USA for approval. During this process they will check your background history for any criminal convictions / bad or no credit history.
- If more stage payments are to be made (CASSA Model) then your Purchase Agreement will outline this.
- The Title Company will undertake all the legal searches making sure there are no legal issues, liens, outstanding mortgage, encumbrances etc. They will then prepare the final documentation for completion which will need to be signed and returned to the USA. You will then transfer the outstanding balance to the Title Companies escrow account together with the closing fees.
- “You now own the property” Congratulations!
Associated Purchase Costs
As a general rule if you are cash buyer, allow 2 – 3.5% of the purchase price for your associated purchase costs which would cover the below fees and a further 1% if you require a mortgage:
- Set up of company structure
- Title Insurance Company
- Closing Fees
- Legal Fees
- Recording of Title
- HOA (House Owners Association) Approval, only if Condo or new property
- Survey (if applicable)
- Admin Fees
These costs are subject to variation and if you have to go through the HOA (Home Owners Association) approval process.
Associated Running Costs
Property Management: $80
HOA Fees (differs on each property)*: $119
Property Taxes**: $143
The above is based on a property purchased at $129,000
*HOA Fees are only applicable on new developments & Condos but not on single family homes.
Property Tax can vary from property to property. This is 2-2.5% which is calculated on the fair market value of the property.
**Property Tax is paid annually and is due 1st November each year and is paid in arrears, you can have until April the following year to pay but if you pay in November you receive a 4% discount.
***Single family homes must insure all the property, Condos are normally covered structurally (roof & walls) in the HOA Fees.
The property management service is designed to ensure that your property is well managed and well maintained over the duration of your ownership. The Management Company performs a thorough background check on all potential tenants prior to them moving.
All the above information has been provided by The Solution Group Corp.