The great Australian dream: home ownership.
Does anyone know much about ‘Rent to Own’ schemes?They seem to be more common in the US than in Australia. Neil Jenman says STAY AWAY IT’S A SCAM but I’m just wondering what others out there think?Say if one had an $80,000 deposit and could afford repayments of $1000 a week, would it be feasible to get a townhouse within a 10km radius of Sydney?Your thoughts would be appreciated.
Hi
We've been using Leas/Options (Rent To Own) and other forms of vendor finance since 2003. You will find quite a lot of properties for sale with vendor finance at:
http://www.renttoownhome.com.au and
http://www.vendorfinancedirectory.com.au
You'll even find them on realestate.com.au and Domain.If your deposit and borrowing capacity allow you to buy your PPOR with a traditional loan, I suggest you go that way, as you do normally pay a premium price for vendor financed properties (the penalty you pay for not being able to get 'traditional' finance).
However, if you are familiar with vendor finance it would be very possible to buy a property, directly from the owner, within 10km of the CBD, with vendor finance. I'm unsure of Sydney townhouse prices so I'm also unsure if $1,000 per week would work. If you have a price range we might be able to give a better guess.
For more information on vendor finance you may like to have a look at:
https://www.propertyinvesting.com/strategies/wraps
https://www.propertyinvesting.com/str…/lease-options
http://www.jvpropertypartners.com.au…d=50&Itemid=75
http://www.vendorfinancelawyer.com.au/
http://www.vendorfinance.asn.au/ The Vendor Finance Association of AustraliaCheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
We did our first Vendor Finance deal in 1996 and have been using it successfully ever since. It is a great way to get into a home if you do not qualify for a bank loan yet. It is also an incredibly effective way to start or more importantly accelerate your Property Investing. Like anything it is about doing your due diligence on who you go into a business transaction with.
Is is probably a good idea to stop listening to people like Neil who heard of a bad experience once …. If you knew a friend once who bought a car that was a lemon would you never buy another car or would you do a little more homework next time.
There are many people who do Vendor Finance with integrity and good business practices that,what Neil Jenman says becomes quite irrevelant!
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