Hi Natalie and thanks Luke.  I agree with Luke.  Step 1, ask the owners if they're interested in selling the property.  If they say yes, let them know that you're interested in buying th eproperty and what price do they think they'd want?  This is possibly the price you'll have to pay for this type of transaction so, if it's acceptable to you, let…[Read more]

Hi chestnutWe have been using Instalment Contracts (Wraps) in our vendor finance business since 2003.  Over the years they have become our favourite vendor finance technique.A list of Australian vendor finance savvy lawyers is available at:http://www.vendorfinancelawyer.com.au/vendor_finance_specialists.htmIf you'd like to learn about real es…[Read more]

Hi GeoffWelcome to the forum.  I hope you enjoy your stay  The second chapter of our booklet goes, "Buying properties and on-selling them with Vendor Finance is a great business model.  However, eventually we were unable to buy enough properties to meet buyer demand. This “challenge” was overcome by people noticing our success and wanting to get…[Read more]

We used a technique that Steve used when he started out, i.e. vendor finance.Our thinking was pretty simplistic at the time.  We were working in a $200K average priced market and I was on an expat wage so we needed approx $40K to buy a place (20%).  We thought that we could make around $40K out of the transaction in anywhere from one to three y…[Read more]

Hi JohannI've got to agree with birchcorp and Barry.  It's been property that's got my wife and I out of the "job" grind.We work our investment strategy on the basis that it will be the equity we own in property that will be our real wealth in the future.  However we've been sceptical about the whole negative gearing "push" over the recent pa…[Read more]

Not that anyone's mentioned it but it's worth noting that, since 31 Jan in NSW, it is no longer permitted to charge the tenant a lease preparation fee.Cheers,  Paul

Hi Blind67We work our investment strategy on the basis that it will be the equity we own in property that will be our real wealth in the future.  However, like you, we've been sceptical about the whole negative gearing "push" over the recent past.  Although it does seem that a large proportion of heavily negatively geared properties have had go…[Read more]

Hi CoalstarAt the risk of mentioning another forum    there's a thread on this subject at:http://www.somersoft.com/forums/archive/index.php/t-12070.htmlCheers,  Paul

Hi CathI originally thought that you may be able to use the Tenants In Common method of buying the property with your Dad.  However with the information you've supplied with in your post above, you may also need a simple Joint Venture Agreement as well.I know Richard is very familiar with this type of situation and I suggest you give him a…[Read more]

Hi IntrigueYou use one of the two Insurance Brokers that I know who specialise in insurance policies for vendor financiers.  A limited Power of Attorney is also a great help.Cheers,  Paul

Hi MunglordWhen you begin looking at vendor finance (VF) stategies it's a good idea to get a clear idea of how the most popular VF strategies work:1.  An Instalment Contract (sometimes called a Wrap).  This is a real contract of sale with a delayed settlement (sometimes up to 30 years), during which time the buyer is given a licence to occupy, i…[Read more]

Hi TonyThe idea you mention above will work, as long as you can find a traditional lender to accept any declarations that your parents might give regarding the staus of the 35%.  I'd suggest you talk to one of the great Mortgage Brokers in the Finance sub forum here.While the idea you mention above is best for your parents, i.e. they at least g…[Read more]

Hi MauriceLewis O'brien is very experienced with Option agreements.  His contact details are:Lewis O’Brien & Associates Suite 113 89 High Street Kew   Victoria   3101phone: 03 9888 6388 Cheers,  Paul

Hi PJThe advice from Mt Fair Go is great.  Other resources out there to help you with the administration of your vendor finance transactions are:http://www.vendorfinancemanagement.com.au  (interest declared)  andhttp://www.paid.net.auCheers,  Paul

Hi All Vendor FinanciersAwhile back ASIC made it known that people/businesses who had Registered for the ACL prior to 30 June, needed to submit their ACL applications prior to 10 December, to ensure they would get their ACL's issued prior to 31 December (the cut-off date for Registration validity).Just last week, two students who had Registered a…[Read more]

Hi Max & TerryThe position on stamp duty is as Terry said, i.e. it's payable within 90 days of exchange in NSW and in Vic it remains payable at settlement.  Good on Vic!!Terry I believe the rumour you refer to regarding a couple of big vendor financiers happened during the GFC, i.e. they each had multi million dollar facilities to buy pro…[Read more]

Hi TerryI guess that's what makes law so interesting, i.e. the variety of opinion    I recently received this opinion from another solicitor in answer to my question regarding Instalment Contracts and the issue of "assignment"."The answer to your question is a technical one – there is no assignment of property in an instalment contract. What hap…[Read more]

Hi HerbTo get your borrowing capacity "back into shape" I'd be tempted to go with duckster's suggestions above, i.e. sell one of the properties.  But, instead of selling it traditionally, sell it with an Instalment Contract (IC).  This type of sale would get you an upfront deposit, fixed positive monthly cash flow of at least $500 per month (aft…[Read more]

Hi TylerI won't make any comment on ethics here but you may be interested to learn of the different types of Agency Agreements in WA and how these effect the payment of commission.  The WA government has a publication at:http://www.reba.wa.gov.au/Content/Buyers_and_sellers/Information_for_Homebuyers_and_Sellers.htmlGo to page 10, where it starts,…[Read more]

Hi MaxMike is correct, however you should also recognise that most mortgage documentation also;1.  Requires you to get lender approval to rent the property2,  Requires you to get lender approval to sell the property3.  Requires you to get lender approval to make any changes to the propertyThat is, there is quite a large list of what you can't do. …[Read more]