Hi my friend is very interested in financing a wrap for me but I need to present her with the total Vendor Finance package, Ive collected VF samples and information from my research but still not terribly confident. She estimates 700k equity in her property, is on a good income etc and looking to earn a passive income as long as it doesn't involve too much leg work or energy on her part.
Can anyone help me put the VF package together or is there an existing presentation I can use etc. Our total net income is approx $ 94k pa permanent employment, entitled to fhog, no loans, no credit cards, bad credit history (friend knows what happen 6 years ago) we are saving again after forking out on a recent holiday. Have around $2000 saved manage to put away $300 pw. Im thinking we can comfortably afford up to $450,000 on an inflated interest rate of 7.24%?.
Thank you in advance for any advice provided.
Hi Toree,
I am currently working through vendor finance deals myself. Stamp duty is a killer, (not for you as a first home owner, but for your friend who would need to buy the property for you first). Here in Sydney a $450k property would have approx $18k stamp duty. Your friend would need to add that to the property price they pass on to you, plus their profit margin.
Where do you live? Stamp duty varies significantly depending on where you are. In Melbourne you could get a brand new 5 bedroom home out west for $400k (20k from CBD). One advantage of purchasing new is that you avoid lots and lots of stamp duty. i.e, $150k land only attracts $4k in stamp duty and you could get up to $26k in grants.
I am in a position where I can access mortgage finance at better terms than others (I work for a bank and get a great employee benefits package). I am able to do much better deals than any others I have seen out there. If you struggle to come to an arrangement with your friend that works for both of you, I could do you a deal at your desired interest rate for a new home.
Feel free to contact me on [email protected] if you have any questions.
Toree
I am Director of the largest provider of Vendor Finance terms in Qld (First Home Owners Group Pty Ltd) so would be able to help answer any of the questions you or your friend may have.
However i might have a better solution for you which would save you a considerable amount. We find the deals we can offer are much more competitive than the Banks who are restricted to credit policies irrespective of what Matt tells you.
Feel free to drop me a line and I can give you and your friend some further information.
Richard Taylor | Australia's leading private lender
Hi Toree,
I would recommend discussing this with Richard. I have always been impressed with his contributions on the forum and he seems very knowledgable.
Richard, my comment on being able to do much better deals than any others I have seen out there was not in comparison with banks, but from observation of what other vendor financers have said they could do, as in this thread which you responded to.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4327690
I was able to negotiate a deal with them when no-one else was able to, due to having access to preferential deals for financing through working for a bank.
Cheers,
MattHi Matt & Richard
Thank you both very much for your responses. Matt thanks for your recommendation and will discuss further details with Richard. In answer to your question we live in Brisbane.Kind regards
Margaret
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