Hi PaulThe property is in Point Cook West Melbourne and the price is $460k, 4 bedroom 2 bath.CheersPaul

Hi EveryoneRemember that you should seek legal advice only from qualified lawyers regarding vendor finance.I thought it would be a good idea to provide this link to the vendor finance lawyers website for any queries regarding vendor finance for real estate in Australia.http://www.vendorfinancelawyer.com.au/vendor_finance_answers.htmThere are…[Read more]

Hi CasanovawaWhen it comes to tax, yes you have to pay tax on:the 25k depositthe positive cashflow &the backend.You can of course claim depreciation, interest etc.. but the government will not allow you to make money without getting taxed. Still as Steve Mcknight puts it its better to make money and get taxed then to lose money and not get…[Read more]

Hi Number 8Was the vendor financier residential, commercial, business? If they were residential I can make a calculated guess as to why. If the buyer does not put a caveat on the property then they are not aware if the vendor is taking their payments and not paying the banks. this is rare however it can happen. This means the vendor loses the…[Read more]

Hi IntrigueThe caveat means that whomever has registered it has an interest in the property. So if someone does a title search they will be aware of the caveators interest in the property. The Registrar of Titles can not deal with the property without notifying the caveator first.As of the 31st december 2010 if you are looking to do multiple…[Read more]

That is correct IntrigueThe vendor's name stays on the title and yes if they fail to make payment you retain ownership of the property. The buyer can put a caveat on the property which is generally what happens.The buyer has to pay stampt duty up front in every state except Melbourne where it is deferred until they get a bank loan. Your figures:…[Read more]

Hi number 8answers to your questions:1) The bank, You can inform them if you like, it is completely up to you. I do not quite understand why you are interested in the banks perspective about it? Why invlove them at all, you are not changing your contract with them and they have no part in the process. General rule of thumb in the bank is as long a…[Read more]

Hi number 8Generally we structure the contract that the for the first 2 years we charge the standard variable rate, then it progressively increases (1%, 2% etc…) each year to motivate the buyers to buy us out. This provides positive cashflow for a few years and then a lump sum payout generally after 5yrs at most. The idea is about fast return on…[Read more]

Cheers Mate

Hi Richard,We have already registered for the Australian Credit License so that we are compliant before 31 Dec 10At the recent Vendor Finance Association meeting Lewis advised us its better to be safe than sorry.CheersPaul

I am not trying to sell you anything.I am just trying to help, but if you want to take the negatively geared path its your choice, i am only trying to provide information i wish i had with my first property investment. would have saved me tens of thousands of dollars.I will not reply anymoreall the best with your investment choice.

Hi cellphoneI will give you a current example.There is a couple that my partner and I know and they want to buy a 400k home, but they dont qualify for a normal bank loan.We step in and mark up the price by 17% to make it 468k We then create a contract (vendor finance agreement) that says they agree to the marked up price and will put a 25k deposit…[Read more]

cell phone,Are you looking for just a buy and hold or would you like to get a return on your investment immediately. I use wraps or vendor finance as my property investment solution, it gives me peace of mind because no matter how interest rates move I stay positively geared.Also I mark up the price so harness equity growth immediately. (part of…[Read more]

They are looking to buy a house in Tarneit at approximately $340,000 – 370,000. Looking at paying $10,000 above purchase price, at a 1.5% increase in interest rate. Paul