Thank you for your imput Andrew.

It now looks lke we will not go ahead with the purchase as we cannot afford to pay the stamp duty as well as pay some deposit. I spoke with the ATO and they advised, as Richard mentioned, we need to pay the Stamp Duty with in 28 days of the contract date.

While we thought Vendor Financing through an Instalment Contract  was going give us the lowest risk, which it seems to, the Stamp Duty issue doesn't help our situation today. (have been advised by our Broker that stamp duty is approx $17,500 on the contract price).

May consider other alternatives….I have been reading about thes Licence to Occupy set ups…Could someone enlighten me on what is involved here.

We will get into a home…just may take a little longer..

Many thanks

Jean

Andrew, Richard, Terry and All,

Many thanks for this fantastic discussion. Just updating where we are today. ( Andrew – we are in SEQ )

We decided to do our homework as buyers as the builder/ seller seemed to know what he was doing however the paper work seemed to be lacking. His solicitor wanted us to pay $1,000 upfront for him to go and research how to do the paper work..mmm

As the buyer we are looking to help ourselves out of our situation, a solicitor would be great thanks Andrew…sounds like you have some current experience in that area.

We can see the risk, as the buyer, in going ahead and now feel even more confident in Vendor Financing….paperwork and communication are key.

Would this be correct that over the next 2 years till we refinance into say Westpac we would need to save up for stamp duty, we are not SD exempt?

We thanks everyone that has participated to making our future so much brighter

Kind Thanks

Jean 4 Mal

Hi Scott No Mates,

Unable to get traditional finance hence the reason for Vendor Finance. One way seems to be via an Installment or Terms Contract to get into the property. Could you suggest another type of acceptable Vendor Finance deal..here are some details. I need about 2 years before I can get traditional finance, say from Westpac or similiar. We have steady incomes of 2k a week net, $30,000 of savings and no other debt.

I hear/ read people do this all the time and am doing our DD before signing on the dotted line. The catch as I can see without getting back into a property today by the time our credit is good in 2 years the market could have moved up again..

Many Thanks

Jean

Thanks crj…my main concern is the protection of my equity in the property. I know the seller has an underlying mortgage of 360k. The property is worth realistically 390k  today (done my homework there). I am considering handing over 30k to get into the property. The Installment Contract is for 20 years however I would look to refinance in about 2 years….Finding a lawyer that understands all this is challenging…(I am making time to talk with Qld007 on Monday, sounds like he has much knowledge in this area).
How much strength would my caveat have, after the 1st mortgage, if say in 12 months the seller went bankrupt and the 1st mortgage holder called in the loan? (if the 1st mortgage holder sold the place for 360k it would appear my "equity" is lost?

My interests in the property being the equity and possession are only protected by the caveat and the legal paperwork the lawyer draws up?

Thanks

Jean