Hi,

Welcome to the forums. It would be great if you could contribute your experience and knowledge as I’m sure you have plenty to share!

To answer your two questions:

Q1: Re: Socio-economic profile.

I doubt anyone can give you a definitive answer although I’m sure many people have an opinion.

It is true that some wrappers target those who desire the dream of home ownership but don’t necessarily have the financial ability to understand the nature or obligation of the agreement.

Yet, having said that, the target market for vendor finance are those that cannot access traditional finance. That is NOT to say that it is the financially desperate who are the bread and butter of wrappers. Far from it as someone who cannot afford to make repayments can provide no positive cashflow.

Further, you need to understand why it is that those from a low socio-economic profile that cannot secure finance. Usually it’s because they cannot save the 20%+ deposit in the first place, and as such, vendor financing is seen as a low cost way to get into a house on a form of bridging finance until they can cash out using cheaper finance.

The key to win-win vendor financing is finding people, from whatever sociio-economic profile, who can afford the repayments and understand the nature of the agreement.

Recent vendor finance deals we have done have not involved people from low socio-economic profiles.

Q2. Affordability

You are right. Prices have boomed and the wrap deals that I did at the start on the basis of repayment equal to or lower than rent are very difficult to find now.

As such, the equation has changed so that even more people are priced out of owing a home. This is the exact problem that the producivity commission into housing affordablity is looking at.

People and properties suitable for vendoring financing continue to exist today. Yet matching them together so that all parties benefit requires increasing skill – and plenty of hard work.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Like everything, wraps included, you need to weigh up the risk vs. benefit.

It seems this is a higher-risk strategy that will suit people, but not all. TT ran with one perspective, but the counter argument could probably have been presented with as much enthusiasm on a different night. Who knows?

Get educated and make your own informed opinion

Have a wonderful day.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

No. You actually pay 0% CGT [wink]

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Go Rachelle!

Next you’ll be doing seminars [wink]

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

The firewall I use at home is Sygate Professional… I find it very good and it’s free (for home use) from http://www.tucows.com/

Do a search on firewalls and I think it is a few pages in.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

I’ve been to one of Ron’s seminars in the States and it was quite good.

Be careful though, as he has been marketing seminars where a representative of his speaks rather than the genuine article himself.

Oh, and expect plenty of sales pitch.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
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Hi,

It’s very simple… focus on the cash and not the profit.

As an investor I want to know how much in for how much back. ROI is based on profit which can be manipulated, cashflow is cashflow.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Interesting post.

I think the best place would be the public library.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********