http://www.fairtrading.qld.gov.au/be-wary-of-loans.htm

Hello all

The wrap loan or rent/buy scheme is a way of extracting precious dollars off an aussie battler who has been turned down by conventional lenders. I'd like to see the stats as to how many of these fail from the aussie battler's perspective. (the promoter invariably wins) They've been around so long I can't remember and hallmarks include being spruiked at "investment  seminars", promoted on A4 paper on power poles and in 2 line adds in community newspapers.

Little wonder the Queensland government warned consumers – see above link

Whilst there are legitimate reasons for using vendor finance. there are more honest ways of making money than ripping off the aussie battler who will ultimately default on his rent/buy scheme.

If you do go down that path, be prepared to have a silent number, address off electoral role etc when/if you start the process of evicting the home occupier – we all love our home and you will need nerves of steel to put a family with young kids out of their home. Don't tell your family or friends how you make your money becuase you are now at the bottom of the most depised (far far, far, below used car salesman)

Yes, I have seen these in a SMSF, often in conjunction with  a "joint venture" (see a legal dictionary if you think that means partnership, tenants-in-common or joint tenants)(seek professional advice if considering a joint venture in a SMSF as some in the ATO despise them as very questionable and dangerous attempt to circumvent the superannuation law) My slightly moral high ground makes my lip curl a little when I see a buy/sell in a SMSF