Our favourite Newcastle solicitor is:

Wayne Roddenby

Paragon Legal

Ste5/ 36 Kemp St

The Junction NSW 2291

(02) 4961 1120

Cheers,  Paul

Hi Johann

Just a tad of a broad statement mate i.e. real estate 'returns for investing are quite low'.  Sure the standard buy & hold strategy is having a few challenges but our full joint venture partners are earning anywhere between 17% and 21% (annualised) on their vendor finance properties.

Cheers,  Paul

Hi Rob

Deposit Finance is one of the three most popular vendor finance (VF) techniques in Australia, along with Instalment Contracts and Lease/Options (Rent To Owns).

With Deposit Finance the purchaser gets a first mortgage from a traditional lender and you supply a second mortgage to the purchaser for the bit the traditional lender didn't supply.  Usually somewhere between 10% to 20%.  This second mortgage is normally notified on the Title by way of a caveat.  It's also worth considering the security of second mortgages (there is a reason commercial second mortgage providers charge very high interest rates for these loans).

Deposit Finance was easy to put together pre GFC and almost impossible to do up until about 18 months ago.  There are now a couple of traditional lenders we use to put them together and you always need to remember that your purchaser needs to qualify, serviceability wise, on 100% of the purchase price.

We have been working in the residential real estate vendor finance market place since 2003 and you may be interested in a blog post I've just posted called '10 Mistakes to Avoid with Vendor Finance'. It's at:

https://vendorfinanceinstitute.com.au/home/?p=1749

Here's some information on vendor finance (VF) educational resources.

The Vendor Finance Association is a great place to meet vendor financiers. Dates and details of meetings are available at: http://vendorfinance.asn.au/meetings-and-memberships/

I believe it's important to build a good foundation to your vendor finance knowledge and there are numerous educators to choose from. Some that spring to mind are:

Sean Summerville – http://www.thepropertyking.com.au/

Rick Otton – http://www.rickotton.com/

Dave & Julie Siacci – https://vendorfinanceinstitute.com.a…-finance-1997/

Paul Zalitis – http://www.aussiewrapper.com.au/Cash…Investing.html

Gordon Ku – http://gordonku.com/

It is worthwhile researching all these educators and choosing one that suits your style.

Some other research locations are:

https://www.propertyinvesting.com/strategies/wraps

https://www.propertyinvesting.com/str…/lease-options

http://negative2positive.com.au/info…vendor-finance

http://www.vendorfinancelawyer.com.a…ance_intro.htm

When vendor finance started to become popular again in the early 'naughties', it did attract a bunch of make a quick buck "specialists". However more recently the Vendor Finance Association and new legislation have helped to make buying your home with vendor finance a viable alternative for home buyers who are unable to get traditional home loans.

Cheers, Paul

Some good information on the difference is available at:

http://somersoft.com/forums/archive/index.php/t-47514.html

Cheers,  Paul

The best two spots to look for properties being sold with vendor finance are, the classifieds in your local community newspaper and on the internet at:

http://www.renttoownhome.com.au

http://www.vendorfinancedirectory.com.au

http://www.gumtree.com.au

If you do find a vendor finance property that's affordable and interests you, may I give you a hint.  You will be talking to business people, possibly even landlords.  It may pay to ease off on the 'greedy landlords, who prey on the vulnerability of older women in our society', line of conversation 

Cheers,  Paul

Hi kong

The technique you mention is one of the 3 most popular vendor finance techniques in Australia,  Vendor financiers generally call it Deposit Finance.  It was easy to put together before the GFC and and then almost impossible to arrange post GFC.

However over the last 12 months there are more and more traditional lenders who are prepared to accept 'non genuine savings' as part or all of the deposit.  We now use two of these lenders to regularly put together Deposit Finance transactions.

Cheers, Paul

I find the following Stamp Duty calculator pretty handy:

http://www.rams.com.au/home-loans/calculators/stamp-duty-calculator/

but there are heaps of them.

Cheers,  Paul

There's no doubt about it, it's all there on the world wide web and it is free   But sometimes you don't know what you don't know and trawling the web can feel like going around in circles.

Derek has a very systematic and easy to follow online course to take you from newbie to a reasonable level of competence.  As with most courses these days, you will find all the content on the www for free but do you know what you need to search out?

Freckle it's obviously time for the Freckle Course 

Cheers,  Paul

If you're going to get into flipping I'm wondering why you would bother buying the property, considering all the finance and closing costs involved.  Why not control the property with an Option and then flip (sell/assign) the Option?  We've done this quite a bit and it works well.

Cheers,  Paul

Hi priscillac22

You mentioned that you haven't yet completed your DD.  With all the stories I've seen on this forum regarding problems with buying in the wrong place in the US, I'd strongly suggest you give Nigel a call.

Cheers,  Paul