Hi all
Just finished listening to the ‘Real Estate Show’ on 92.5 FM on the Gold Coast. There was a short session on the “new” concept of wrapping. The person being interviewed painted a fairly negative picture for the ‘wrapee’ and implied the investor was the winner in the deal. Nothing was said about the opportunity created for people to be able to own their own home.
This I think follows on from the Today Tonight program last week that highlited a particular company wrapping houses and a couple that had run into difficulty, again only the negatives are portrayed to the public by the media.
At the end of the wrapping segment on the radio program this morning it was stated that State Governments were investigating whether wrapping should be made illegal.
Has anyone heard anymore about this?
Swampy
Hiya Swampy,
It’s always true… they only ever show the bad side of anything on TV…. otherwise it’s not interesting I guess!!
Imagine if there were NO terrorist bombings next week… I’m sure that wouldn’t rate a mention!
Lozza
Swampy,
Pisces will tell you… If you heard it in the media it simply MUST be true….. right Pisces [lmao]
The VFA is working WITH the state governments with the aim to educate, and, to begin regulating wrapping….
Vendor Financing & Wrapping are a good thing, when done properly…
Unfortunately, there seem to be some greedy idiots out there, who stuff it up for the rest of “us”………..
Funny how shows never have testimony from the heaps of people out there who are happy to finally be able to own their own home….
I myself when I return to Australia, won’t be able to get a normal loan, and, YES, am happy to buy a wrap property myself to live in…. as long as I knew the terms….
Wrapping is one of several financial options available to people. simple as that….. you way up the pros & cons, then make your choice…
When you buy your PPOR, if you went ahead without legal advice, you’d be pretty stupid wouldn’t you say ? Same for ALL purchases of property. get independant legal advice…..
Sorry to rant on here folks, but simply put, we are all ( mostly !! [blink] ) adults here, and should really be able to take care of ourselves….
It’s the victim mentality of the lazy that get the ratings on TV… Oh dear… I signed a contract, but I didn’t check it first…. now I have to give up my first born…… DOH !!
Is it just me, or what ? But when I sign something, I read it first…. if it’s important, i.e. related to me buying a home, guess what ??? I get legal advice…. BEFORE i sign it…..
Scott
Pelican Investments
http://www.pelican-invest.comRight on Scott,
I would love to do wraps to help those unable to arrange the finance to have their own home. This dream eludes too many people. And I would love to buy Steve’s Wrap Pack, but am wary of outlaying the cost because of all the hype about a scheme that has been around forever and the possibility of making it illegal, and the bad stories that air. How about us property investors, including all the guru’s out there, buy a segment of air-time on Today Tonight and interview succesful wrapees, done the ethical-legit way where Average-Joe walks off happily into the sunset…and were ‘we’ get to point out the benefits of the process.
By the way…..as if banks don’t make a profit on deals. Why not the vendor?? We’re all in this to make a buck – vendors, buyers and the like. And we’re all adults taking responsibility for our own actions….or are we.
Must go, getting emotional.
Nice day to all.Fish
Fish,
Thanks….
Well, I guess let me ask everyone out there, what is the big difference between a bank and a wrapper ???
1. In both cases if you don’t make payments, you are likely to lose your home, NO MATTER who’s name is on the title……
2. If you are in difficulty, a wrapper ( usually ) will work with you to come to an agreeable solution….. Banks – not usually….
3. Possession of title – Well, you only get it once you have paid for it…. right…. Banks & Wrapping = SAME………
4. Naughty wrapper – you are making money on a %% on the loan….. HELLO…. that is EXACTLY what banks do….. They borrow from places like Japan, at around 1-2%, and then lend it to us at around 7%……. As a wrapper I only markup about 2.5%…. so who’s the crook here ??? Both are out to run a business and make a profit….. this is the way life is… in ALL industries…..
5. What about nasty wrapper going bust…. – You mean banks NEVER EVER go down the tubes….. ( anyone remember the Bank of Credit & Commerce ???, to name but 1 bank ??? ) Yes there is a very low chance of that happening, BUT, on the flip side, wrappers, who are in this for the long haul, are financially educating themselves, and, want to grow…. i.e. not going to get into a tough postion……
On this one…. maybe we need to establish an escrow system, whereby a 3rd party pays the banks first…..
6. Hidden fees & Charges – Hmmm… usually they are all stated in a contract, be it a bank loan or a wrap contract…. just that some silly bunnies don’t read what they sign….. no differences here then…..
This basically sums up the issues that people have a problem with…….
With the exception of 1…. I really do not see much of a difference…..
It’s the idiots out there, ( on both sides of the wrap contract ) that make this out to be a bad thing……
So, where do we go from here ???
1. EDUCATION
2. REGULATIONEnuff rambling for today…..
Cheers
Scott
Pelican Investments
http://www.pelican-invest.comAlthough I’ve not yet performed a wrap ( or much else for that matter…yet ), my feelings are that I’d be a lot more comfortable with the knowledge that the methods and processes I was using formed part of an accredited vendor finance scheme, and that what I was doing was good, ethical and all above board.
To ensure that those VF systems in use today and on-sold by the McKnights and Ottons of this world have been scrutinized by certain ethical, moral, legal and financial guidelines to ensure they comply with the spirit of the process and that protections exist for both vendor and buyer.The VFA seems to be working with regulators to achieve these goals.
PS. I’d be surprised if steve’s pack didn’t comply with all of the above. The certification would be handy from the client’s perspective – helping to convince them that it does take into account their interests and to provide peace of mind / redress should something outside the guidelines occur.
Cheerio
Fish
Hi Fish
The VFA is working on a system of membership/accreditation, so that wrap buyers can be confident that they’re working with someone who adheres to minimum standards of good practice.
Also, a couple of times when Rick has been interview by shows that are planning to do a hatchet job, he has offered to get in touch with some of his wrap buyers so that they can show the positive side too. They’ve never been interested. I wonder why?
Keep smiling
FelicityOriginally posted by FW:Hi Fish
Also, a couple of times when Rick has been interview by shows that are planning to do a hatchet job, he has offered to get in touch with some of his wrap buyers so that they can show the positive side too. They’ve never been interested. I wonder why?Keep smiling
FelicityHi Felicity,
Hmmmmmm a rhetorical question – is the answer good news = no news?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Happy people living happy lives tends not to be the stuff of which sensational tag lines are made….
Keep smiling
FelicityHmmm… seem to remember A Current Affair doing a story with Steve on wrapping, describing him as a saviour of Australia’s battlers, helping them into their own homes… of course, none of you would remember that would you, because it destroys your argument in one fell swoop.
If you’re going to debate, acknowledge the black and white in issues… it’s not all one colour.
Richmond,
Yes, and that just means that the media will choose a slant on an issue to get the ratings in…. won’t it ???
Whilst I DO know that not all media outlets are into that sort of thing…. unfortunately ( like us nasty wrappers ) you get tarred with a rather large brush…..
Frankly I am very selective about what news I read and watch nowadays, as, I just find a lot of it biased……
Wish it wasn’t……………………
Richmond
I do remember the positive story on Steve – and another one done by Today tonight on Rick Otton.
I still stand by my statement “Happy people living happy lives tends not to be the stuff of which sensational tag lines are made….” although perhaps it should be senationalist rather than sensational!
You should also note that I said “tends not to be” not “all” – that’s not a one colour statement at all!
Current affairs programs do promote positive stories at times, but certainly their promos are overwhelmingly for sensationalist stories. This is their bread and butter.
Newspapers publish some positive stories, but again, their main content is news stories which are about less than positive events in the world.
There also tends to be waves of stories. Right now the media is having a whale of a time producing a bucketload of negative stories about property – hence their lack of interest in happy stories about wrap buyers.
A couple of years ago, the media was full of positive stories about property – hence the shows on ACA and TT back then which profiled Steve and Rick in a positive light.
I don’t agree that issues are only black and white – they involve infinite shades of grey.Keep smiling
Felicity
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