Hi MaxA 5 year term I/O, amortized over 25 yrs with the balloon payment works as follows:1.  The term of the second mortgage is 5 years, or whatever you can negotiate.  The longer the better, for you.2.  Interest Only – self explanatory3.  Sorry, it's Interest Only, so you just make I/O monthly payments.  If it was going to be a Principal and Inte…[Read more]

Hi ErrolThe deadline of 31 December was only for people who "registered" for the ACL prior to 30 June this year.  This "registration" allowed existing businesses the opportunity to continue to run their businesses from 1 July to 31 December, under the "registration".  It also meant that existing businesses then had from 1 July to 31 December to pu…[Read more]

Hi MaxLike NSW, stamp Duty is payable within 3 months of Exchange of Contracts, i.e. you have 2 months to register the documents/transfer and 1 month to pay.I usually deal with residential property so I'll stay out of the GST question.I'll assume the property is not zoned residential as that will mean your loan(s) on the property will be…[Read more]

Hi ?You might like to consider structuring your next IP so it generates positive cash flow and fixed capital gain, i.e. buy your next property and on sell it with a vendor financed Instalment Contract.We have been doing this for quite some time and find it to be a good tool to increase the speed of our portfolio building.  It is often p…[Read more]

Hi JoeThe MFAA have some interesting career information at:http://www.mfaa.com.au/default.asp?menuid=42Cheers,  Paul

Hi AlistairYes a lot of vendor financiers have received their ACL's.  I think the reason for this is vendor financiers operate in both areas of the new NCCP Act 2009, i.e. we "provide credit" and we "provide credit advice".When the ACL was first brought to our attention early this year, we were concerned that the general vendor finance industry mi…[Read more]

Hi ErrolThanks for the call. It was good to talk.After making all the "newbie" mistakes in the world, we ended up making $19K from our first VF transaction.  If I had done it with an experienced VF'er, the transaction would have had a total profit of about $35K.  Having done it with an experienced VF'er would have given me about $17,500, i.e. n…[Read more]

Hi GerrardThe two main reasons for using a call option in real estate are:1.  to control some property while you get a Development Application done and2.  to control property that you intend to occupy or on-sell to others with some form of vendor finance.We work in the second area and if you'd like to learn about real estate vendor finance in A…[Read more]

Hi DanielWe could do the plumbing ourselves but we budget to use a plumber.  To us, paying property management fees to a GOOD property manager, is far more preferrable than the sheer frustration of working within the Residential Tennancies Act.Our favourite property manager had a great nickname, "The Terminator"     i.e. make sure your propert…[Read more]

Hi AndrewYou might like to consider structuring your next IP so it generates positive cash flow and fixed capital gain, i.e. buy your next property and on sell it with a vendor financed Instalment Contract.We have been doing this for quite some time and find it to be a good tool to increase the speed of our portfolio building.  It is often p…[Read more]

Hi All Vendor FinanciersASIC recently made it known that unless you get your ACL Application into them by 10 December, you will not receive your ACL before 31 December.  10 December is only 3 weeks away!! Vendor Finance Institute ran it's last ACL Application – Assistance Day, in Brisbane on 13 November and have no further Assistance Days p…[Read more]

Hi CathIf you are interested in applying for your Australian Credit Licnece (ACL), we have just launched our ACL Assistance Pack for Vendor Financiers.  Information is available at:http://www.vendorfinanceinstitute.com.au/acl-pack.htmlWe've made this Pack available because we ran our last ACL Assistance Day for Vendor Financiers on 13 Nov and and…[Read more]

Hi PJSteady employment and good serviceability.  We also look at how often they move their PPOR and we make a point of visiting their PPOR if possible.  How they treat the property they're currently living in, will be mirrored in the property you're selling them.If you get hold of a traditional lender's home loan application form and look at t…[Read more]

Hi PJSome aspects of our business we will keep confidential   However in relation to your question about our VF buyers attitude towards capital gains, I'd say it's almost non existant.  Normally our buyers have been locked out of home ownership for some time because of their inability to get a traditional home loan and they're usually pretty u…[Read more]

Hi PJAbout 20% of the Australian population is locked out of home ownership because they can't get traditional home loans.  There's no doubt in my mind that quite a large number of these people shouldn't get loans but there is a percentage that are locked out because they can't get the necessary deposit together, are newly divorced, are newly s…[Read more]

Hi PJA period of high capital growth.  This is because it enables your VF buyers to refinance as soon as possible and give you your back-end profit, i.e. the difference between what you bought the propery for and what you on-sold it for, less what they've paid off while they were with you.However, interestingly we manged to start 2003 and, of c…[Read more]

Hi PJYes we still have a number of -cf buy & holds but these are in areas we think have good capital gain prospects.  Others, that have been -cf in the past have now move forward to neutral and positive.Yes setting up a JV / Mentor arrangement in Perth is quite possible.  Please PM me or call.Cheers,  Paul 

Hi TraceyIf you'd like to have a read of some great information from a VF specialist lawyer, have a look at:http://www.vendorfinancelawyer.com.auHowever Tony, is a NSW based and you're looking for a Victorian specialist. We use Lewis O'Brien for our Vic transactions. His contact details are:Lewis O’Brien & AssociatesSuite 11389 High StreetKew V…[Read more]

Hi realdreamIf you'd like to learn about real estate vendor finance in Australia, I suggest you do a search for Vendor Finance here and in the Somersoft forum.  You'll get an immense amount of reading material in both these forums.A few web resources that may help in your search for information about vendor finance…[Read more]

Hi PJOn average we work it so that one property sold with a vendor finance Instalment Contract will support one buy and hold of approximately the same value.For most of our JV partners this turns into two +cf properties to one buy & hold while they're learning, i.e. most of our JV partners want to learn how to "do it" so they share the profit from…[Read more]