Hi Pogita

As ASIC requires Credit Representatives to operate "on behalf of" the licensee, the Credit Representative path probably won't work.

I do now of an ACL applicant that had its ACL application knocked back due to a lack of prior experience.  What this Company did was hire in an external, appropriately qualified and experienced Responsible Manager.  This hired in Responsible Manager enable the Company to gain both ACL authorisations, i.e:
1.  Engage in credit activities other than as a credit provider, and
2.  Engage in credit activities as a credit provider

This only works for Company ACL applicants as individual applicants must be appropriately qualified and experienced themselves.

Cheers,  Paul

Hi Ricky

If you go to
http://www.yellowpages.com.au
and search for "justice of the peace" in Melbourne CBD you'll get the details of 10 JP's in the CBD.

Cheers,  Paul

Hi j260899j

As Michael has already posted the link to our negative2positive site, I'll presume you had a read.  We use Lease/Options but tend to prefer Vendor's Terms (Instalment Contracts).  They aren't inherently difficult, i.e. you could find a number of solicitors in Sydney to write up the legal paperwork for you, just by doing a search of this forum.

However there are a few pieces of the puzzle that can trip you up, eg:
1.  What are the pros & cons of the different selling strategies.  You may even consider selling with deposit finance.
2.  What is the best method to set your selling price
3.  Do you need Australian Credit Licence coverage for your chosen selling strategy
4.  If you market a vendor finance property like a standard sale, you'll slow down the selling of the property considerably.  What's the best marketing for VF properties.
5.  How do you answer sales enquiries?  When we started I hated the thought of "sales".  I got around this by one simple sentence.  I'd chat for awhile and then say "do you mind if I ask you a few questions to see if we can get you qualified?"  Worked for me 
6.  As a newbie you'll be seriously motivated by your holding costs, to give the property to the first person who comes along.  Very dangerous!  You need to know how to properly qualify your potential buyers.
7.  How to properly instruct your solicitor so the legal paperwork gives you what you want and have agreed upon with your buyer.
8.  How to administer the resulting loan or lease.
9.  When it comes time for your buyers to refinance or exercise the option, you've got to know and understand that it's not a straightforward process.  Who do you send your buyers to get this done?

I'd also suggest you look at joining the Vendor Finance Association of Australia.  Have a look at their website at
http://www.vendorfinance.asn.au
for their next Sydney meeting.

Also, please feel free to PM or call me if you have any questions.

Cheers,  Paul

PS.  Michael & Jamie thanks.  Appreciate your thoughts.

Hi Murasaki

Not really.  Bell mentioned that he was looking to hold the property for a period of time, while he does the work he needs to do, prior to on selling it.  He didn't mention on selling it with VF, so I didn't cover that.

With a Lease and a Blind Option, Bell would be able to occupy and control the property, while he does the necessary renos, prior to selling the property, i.e. assigning the option.

Cheers,  Paul

Hi

The vendors are offering you what we call a Second Mortgage Carry Back (SMCB), i.e. you get a first mortgage on the property for $460K (i.e. approx 73% LVR) and they will supply you with a second mortgage for $230K (you plan to use $60K to pay off debts).

Before the GFC and the new National Credit Code, SMCB's were easy to get across the line, i.e. lenders weren't all that worried about where the money, above their loan amount, was coming from.  That is definitely not the case now and to get one across the line takes some finessing.  I'd suggest you use a mortgage broker who can show you that they've got one or two of these across the line recently.

Also, as the property is 60 acres, is there a chance that this could be classed as a commercial/business loan?  If it could be, that could make a SMCB easier to get across the line.

Cheers,  Paul

Hi Liam

We send in the variation once the IC has "exchanged" and the new buyers have taken possession.  At this point our solicitor, sends us a letter outlining all that has taken place, along with a variation form and instructions on how to fill it out.

We complete the variation form, send it to the OSR and they come back with a letter requesting more information.  We forward this letter from the OSR to our solicitor and he supplies the OSR with the information they need..

Cheers,  Paul

Hi Troy

Whether I'd suggest you use VF to sell this property would depend on your future plans.  If you've set out a plan that includes a positive cash flow strategy for this property then, yes I'd probably suggest you consider selling it with VF.

However, at this point, all that seems to have happened is your tenants have expressed an interest in buying the property.  Selling traditionally, gets all your money now and frees you from any commitment to the property.  Therefore in the greater majority of cases I'll suggest that people try a traditional sale first and, if that doesn't work, consider a VF sale.

Once you go through the decision process above and if VF is your chosen course, then we can have a look at what VF selling strategy you might use.

Cheers,  Paul

Hi tjunction

Your summary of the flow needed to buy a property with some form of vendor finance (VF) looks pretty spot on to me.  Also, yes you'd be crazy to think that you'd be able to buy any property you run across with VF.

However we have bought a lot of properties with VF and have found that, as the years have gone by and VF has become more well known, more sellers are prepared to consider the idea.  Also that state of the market in the area you're looking has a large effect on VF offer acceptance, i.e. the flatter the market the greater the acceptance.

"A sure alternative", definitely not but if you don't ask, the answer is no

Cheers,  Paul

Hi Jake

I'd recommend you have a look at the Newcastle and Port Stephens area of coastal New South Wales. Newcastle has got to be the best little city on the East Coast and Port Stephens is a great coastal holiday area right next door. All still only 1.5 to 2.5 hours from Sydney.

Cheers,  Paul

Hi Amy

I believe your understanding of the CGT implications of selling a property are correct but I'm not an accountant and I suggest you get professional advice on both your questions.  Two internet resources on this question are:
1.  Point 5 at  http://www.jvpropertypartners.com.au/index.php?option=com_content&view=article&id=45&Itemid=74
2.  Page 15 at  http://www.bantacs.com.au/booklets/Capital_Gains_Tax_Booklet.pdf

If you are selling your property with a Lease/Option you remain liable for Land Tax on that property.  If you are selling with an instalment contract, you can submit a Land Tax variation, that will move the Land Tax liability to the new VF buyers.  Usually the VF buyers are purchasing the property as their PPOR so the Land Tax liability for the property often disappears.  Point 4 at
http://www.negative2positive.com.au/index.php?option=com_content&view=article&id=45&Itemid=74
also covers this.

Cheers,  Paul