What is the 5/10/20 Triple Guarantee?
The 5/10/20 triple guarantee is an advantage offered exclusively by Resimax Group, especially the 10-year rental guarantee. This means, as a property investor, you will never need to worry about tenant vacancy. In a snapsahot:
5 year Price Protection
Guaranteeing the minimum price for your property if you wish to sell.
10 year Rental Guarantee
Setting the base line for your guaranteed monthly rental cashflow.
20 year Structural Guarantee
Tripling the compulsory minimum guarantee on the core structure of your investment property to 20 years.
100% Price Protection Guarantee – Capital Guarantee
Your purchase price is guaranteed for 5 years. Within 60 days from the 5th anniversary of settlement of your home, you can call on Resimax Group’s own Leap Real Estate to assist with the resale of the property by auction or other agreed means (Vendor appointed agent). If there is a shortfall between the new sales price and the original contract price Resimax Group guarantees to make up the difference ensuring that the contract price is Guaranteed.
10 Year Minimum Rental Income Guarantee - Paid Monthly
When managed by Leap Real Estate, the rental guarantee ensures that each month the minimum rental amount is paid (after any applicable fees are deducted) at the agreed level for 10 years regardless of the property being tenanted or not. At the end of the year any rental amount above the rent guarantee is calculated and paid to you. So not only is your monthly cashflow underwritten (even during vacancy), which is critical if you have a mortgage, but you also get the upside if your tenant is paying more rent than the rental guarantee.
20 Year House Structural Guarantee
Resimax Group’s own Tick Homes, an award winning and recognised leader in quality built, turnkey homes has been leading the way in Melbourne for the last 50 years. Have peace of mind that your investment is built to the highest quality with our 20 year structural guarantee, which is over 3 times longer than industry standard and the legal requirement.
Triple Guarantee FAQ’s
1. Are all Tick Homes in Resimax developments covered by the “5/10/20 Triple Guarantee”?
No, only select properties built by Tick Homes within Resimax Group developments managed by Leap Real estate may be covered by the Triple Guarantee. For a property to qualify for this, Tick Homes must over engineer the building to higher structural standards as required by both Resimax Group and the insurance policy underwriters. Also, some Tick homes have a special, shorter 3-year rental guarantee – please refer to your ‘PRICE PROTECTION, INCENTIVES, STRUCTURAL & RENTAL GUARANTEE AGREEMENT’.
2. If I sell my property, does the new owner receive the balance of any triple guarantee?
No, the triple guarantee is not transferable (even if the property is sold to a local investor and the tenant stays in place)
3. Can I extend the 5/10/20 Triple Guarantee?
No, it is fixed to that property for a fixed period of time.
4. If I purchase in joint names or company & trust names, does the 5/10/20 Triple Guarantee still apply?
5. If my child or family friend moves into the property, am I still entitled to the 5/10/20 Guarantee?
You will still be entitled to the Capital Guarantee and Structural Guarantee (subject to each of their conditions), but not the Rental Guarantee. Even if you later rent the property with Leap Real Estate, you will not regain the rental guarantee portion of the 5/10/20 Triple Guarantee.
6. How do I find out more information about my 5/10/20 Triple Guarantee?
Refer to your ‘PRICE PROTECTION, INCENTIVES, STRUCTURAL & RENTAL GUARANTEE AGREEMENT’ that you signed with your contract of sale. Also, as information is updated, always refer to the 5/10/20 Triple Guarantee webpage https://resimaxgroupinvestor.com/thetripleguarantee/.
5-Year Capital Guarantee
1. When does the 5 years start?
It starts from the day the property is fully built, the last stage payment has been made and it is handed over to the owner (or their managing agent). This will occur after the Certificate of Occupancy is issued and after final stage payment for the Tick build.
2. What price is the Capital Guarantee based off?
The original Nett land contract price PLUS the Nett Tick build price (i.e., minus any incentives/rebates/bonuses offered as part of the sale of the block of land and/or the Tick house build).
3. For the sale of my property to be eligible for the Capital Guarantee, what must happen & when?
Within 60 days of the 5-year anniversary of the property completion, the owner must engage Leap Real estate with an exclusive sales authority and pay their standard sales & marketing fees.
4. What if I sell before the end of 5 years?
You will not be entitled to the Capital Guarantee.
5. What if I use another real estate agent (i.e., not Leap or any other agency that is approved by Resimax Group) or sell it myself?
You will not be entitled to the Capital Guarantee.
6. What if I sell after the 5 years and 60 days period?
You will not be entitled to the Capital Guarantee, unless you have engaged Leap Real estate in an exclusive sales authority, and they have determined that the best time to sell maybe be outside the 60-day period after the 5 years.
10-Year Rental guarantee
1. When does my Rental Guarantee start?
The overall Rent Guarantee starts the day after handover to Leap Real Estate, where Leap has the first 30 days from handover to let the property, and the rent guarantee is paid in arrears. The first rental guarantee payment is two months after settlement (paid one month in arrears). Any costs, such as management fees, letting fees, photography, advertising, etc. are deducted from the rent received, with the nett amount deposited into the owner’s nominated bank account monthly.
2. Do I get the whole rent guarantee amount?
As the landlord you will receive the gross underwritten amount less any normal expenses for that month (e.g., property management fee, plus any other expenses you have authorised Leap to deduct such as council rates, etc.).
3. What if my property is rented for more than the rent guarantee amount?
At the end of each financial year Leap Real Estate will calculate any amount above the rent guarantee and pay that into your nominated bank account. Additionally, they will also email you a full reconciliation to assist with preparing your tax return.
4. What is Landlord Protection Insurance? Where can I get this from?
Landlord protection insurance covers your residential investment property against tenant-related incidents including tenant damage, damage caused by tenant’s pets, rent default, public liability, etc. To qualify for Resimax Group’s ’10-year Rental Guarantee’, you must have landlord protection insurance in place. Leap Real Estate, nor Resimax group, is allowed to advise you on which insurance company to talk to or policy to take out. We suggest searching on Google to find landlord protection insurance companies, and then comparing their policies and prices to find a suitable one.
5. If I have rent guarantee, why do I need to have landlord protection insurance?
To be able to offer such a unique product like the rent guarantee, the owner must have landlord protection insurance. For instance, if a tenant damages a property, and it is untenantable during repairs, then the rent guarantee provider (i.e., Resimax Group) needs to rely on the landlord protection insurance to cover the missing rent.
6. Under the rent guarantee why don’t I have final say on the tenant?
To be able to offer the Rental Guarantee, Leap must have the final say to minimise vacancy periods. Leap Real Estate has a thorough and robust procedure for vetting prospective tenants, and with its unique rewards program, they can select from a range of the best tenants.
7. When I become an RGI Platinum member, when does my Platinum Rental Guarantee benefit start, and on which properties?
Once your second Tick built property in a Resimax Group estate that is managed by Leap Real Estate is available for rent (i.e., keys handed over & property management agreement with Leap signed). Then it will apply to all your Tick built properties in Resimax Group estates managed by Leap that are still covered by Rental Guarantees. If your property’s rent guarantee has expired, then it will not be included in the portfolio to benefit from the extra 10% increase in the rent guarantee.
8. I am an RGI Platinum, how come my rent hasn’t gone up 10% on each property?
The rent guarantee only guarantees a minimum rental amount (even if vacant). If you are earning higher than the rent guarantee, it then has no effect.
20-Year Structural Guarantee
1. What if there is a problem, how will it be identified?
Initially, as part of the Certificate of Occupation, an independent building inspector acting on behalf of the buyer will look for any defects. The Tick Homes site supervisor will also do a quality assurance inspection, plus the property manager from Leap Real Estate will do an inspection and take extensive photographs before the tenant moves in and reports any problems. If something happens later, then contact Resimax Group’s customer care manager or customer service on firstname.lastname@example.org
2. What is Building Insurance? Where can I get this from?
Building insurance can cover your residential building for loss or damage caused by insured events, such as fire, flood, storm, theft and power surge burnout depending on the policy. It is usually a requirement of the mortgage lender to have them noted on the building insurance policy. Even if you have purchased your property with cash, it is highly recommended that you obtain building insurance to protect your residential investment property. It is also important that your building policy’s insured amount is sufficient to account for increases in building and demolition/removal costs, so adding a minimum of 30% to the original building contract cost is recommended.
Please note that landlord contents insurance is often sold with building insurance, you should get at least $30K of contents insurance, as carpets, blinds, and sometimes floorboards are classified as contents, not building by some insurance companies. It is the tenants’ responsibility to insure their own contents separately. Leap Real Estate, nor Resimax group, is allowed to advise you on which insurance company to talk to or policy to take out. We suggest searching on Google to find building and landlord contents insurance companies, and then comparing their policies and prices to find a suitable one.
3. As I have a 20-year building warranty under the RGI Triple Guarantee, why do I need building insurance?
The building structural warranty covers different things to building insurance. For example, a structural warranty may cover things like a slab heave, whereas building insurance may cover a fire.
4. How does the 20-Year Building Guarantee work?
Resimax Group (like all builders in Victoria) must take out a building warranty insurance. This covers 6-year structural & 2-years non-structural guarantee. The majority of these insurance policies are issued by the Victorian State Government’s VMIA (lately another insurer has entered the market and has a small share of policies at the moment). Resimax Group has gone beyond this industry standard, and government required 6-year building warranty to offer a 20-year warranty. This is backed by Resimax Group. This provides more than three times the industry standard timeframe for peace of mind for our investor clients.
5. How do I make a claim for a structural defect?
You will need to notify us in writing with an accompanying engineer’s report via email to email@example.com
If you have any further questions, you can contact Resimax Group customer service on firstname.lastname@example.org