Hi Debbie

We just assisted with one in Malanda (up behind Cairns).  The Sunshine Coast is easy

Cheers,  Paul

Hi Cam

As you mentioned "and get a commission" I thought I'd show you the relevant bit of the relevant NSW Act, i.e. the Property, Stock and Business Agents Act.

"real estate agent means a person (whether or not the person carries on any other business) who, for reward (whether monetary or otherwise), carries on business as an auctioneer of land or as an agent: ….
(d)  collecting rents payable in respect of any lease of land and otherwise providing property management services in respect of the leasing of any land, or …."

Cheers,  Paul

Hi Benni

Welcome to the forum.  We hope you enjoy your time here.

Your serviceability for a loan looks reasonable but your $10K looks a bit low as a deposit.  All the excellent finance professionals on the forum may have a way around this for you.  One possibility is the help of family that may go guarantor for you?

With your serviceability and $10K deposit plus the FHOG you could probably get into a property that's being sold with vendor finance (VF).  The upside of this is you're "in" the market but the downside is you usually pay a premium price for a VF property.  If you'd like to research what's available with VF have a look at:
http://www.renttoownhome.com.au  and
http://www.vendorfinancedirectory.com.au

I have no interest in these sites, other than advertising there.  Good luck with your plan.

Cheers,  Paul

Hi Emma

The only two I know of are RP Data and Investar but they are paid services.

Cheers,  Paul

Hi Tim

Welcome to the forum and I hope you enjoy your time here.  Great group of people 

With your mention of positive cash flow, the following information will help you get up to speed with positive cash flow, vendor finance real estate in OZ.

The three most popular Vendor Finance strategies are:

1.  Rent To Own.  This is documented with a Residential Lease and an Option.  The Lease gives you possession of the property and the Option gives you a fixed price on the property, i.e. overall you get pretty good "control" of the property.
2.  Deposit Finance.  This is often documented with a second mortgage.  This is where the Buyer gets a traditional loan for the property and the Vendor finances the remainder.  This strategy has become quite difficult to use due to traditional lenders tightening their rules since the GFC and the new National Credit Code.
3.  Instalment Contract.  Sometimes called Vendor Finance and at other times, a Wrap.  See the links below to see how these operate.

We've been operating in the Vendor Finance industry since 2003 and it's worked for us.  If you'd like to learn more about 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 are:
https://www.propertyinvesting.com/strategies/wraps
https://www.propertyinvesting.com/strategies/lease-options
http://www.jvpropertypartners.com.au/index.php?option=com_content&view=article&id=50&Itemid=75
http://www.vendorfinancelawyer.com.au/
http://www.vendorfinance.asn.au/   The Vendor Finance Association of Australia

The Vendor Finance Association of Australia has Perth meetings as follows:

The Blue Water Grill in Applecross.
56 Duncraig road, Heathcote Centre, Applecross.
Meeting commences at 8:00 am – 11:00 am.
12th March
11th June
3rd September
3rd December

Cheers,  Paul

Hi bluehoon

In the past, a couple of newbies have used their "shoe leather" to find us deeply discounted properties.  We call them "bird dogs".  It's not easy and initially you'll get a lot of knock backs from us because the properties are only discounted from the "asking" price, not the "market" price.

It's not pretty and it's not easy but it sure did wonders for these bird dogs' knowledge of the market and they did make money out of it.  It's amazing the education you'll pick up when you get out into your chosen market and talk to a lot of people in that market.  Let us know if you find one.  Preferably a 3+ bedroom plus garage, "standard" free standing house, not in a "war zone"

Cheers,  Paul

Hi Bell

I strongly agree with Terry, i.e. get a solicitor to do it. The solicitor we use for Lease/Options in Qld is:
Tom Forster
Litigation Law Queensland
PO Box 1919, Broadbeach, Qld 4218
Phone: 0428 777 007
Fax: 5591 5571
Email: [email protected]

Cheers,  Paul

Hi Bell

I would probably go with the Option and an approval to do the work.  Possibly under a Lease where I pay rent while undertaking the work.  You can then assign the Option to a new buyer and this will save you paying double stamp duty.

I'd also suggest you source what I call a "blind option" so that your new buyer can't see what you optioned the property for, i.e. your Option needs a "higher price" clause.

Cheers,  Paul

I did pick up his latest book, Unfair Advantage, last weekend (as mentioned above).  Enjoying it a lot.  It interesting to see how he's developed his ideas over the years.

Cheers,  Paul

Hi Neville

Purely from a "rescue" point of view, this may be an alternative for you.  Lets assume your loan is $328,000, interest only, at 7.5%.  This gives you a monthly payment of $2,050.

I expect you could sell the property with vendor finance for $320,00, with a $10,000 deposit, at 9.5%, over 30 years.  This would give you a monthly income of $2,606.

This income must be poured, without exception, into the $328,000 loan.

The vendor finance contract used to sell the property must have a 3 year "lock out clause", i.e. a clause to lock out any refinance, within the first 3 years of the loan.

If you do the math, you'll be surprised at how close your $328,000 loan will come to the new vendor finance buyer's loan, after doing this for 3 years.

Cheers,  Paul