PaulDobson wrote:
"The answer to your question is a technical one – there is no assignment of property in an instalment contract. What happens is that the vendor is entering into a Contract for Sale. It is only on completion that an assignment (known as a Transfer) takes place.An Instalment Contract is a Contract for Sale with a delayed c…[Read more]

So.. just made a quick spreadsheet to rough out some figures. Doing this purely on interest only terms to keep it simple, at a 60% bank loan and 40% vendor finance it would take 7 years to reach the equity needed to be able to refinance the loan to pay out the vendor. I'm assuming a 10% growth rate which is appropriate for the area.I dont see the…[Read more]

Thanks Scott on the GST timing – useful tip.Thanks Paul, not quite sure how this works so pardon my naivety…I don’t understand how a 5 year term I/O, amortized over 25 yrs with the balloon payment works? Do we have to assume that the value of the property has increased sufficiently in this 5 years to be able secure the combination of the two loa…[Read more]