Has any one heard of this group or dealt with them at all. In essence they look like vendor finance group where the developer lends the deposit interest free for 5 years at which point the purchaser either sells, refinancers or if they have the cash pay the deposit. I think there are some problems with the deal and lends itself to price inflation etc. If anyone has bought with these guys can you let me know how you went and if they are worth it.
I have enough equity in my house to purchase a third IP so I am not looking at doing it, mostly it is just curiosity.
What group are you talking about ? What's the name ?
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
The group is called The Dream Deposit and can be found on the web. As I said I am looking else where for my next IP but am just curios if anyone has dealt with these guys.
This really is a fascinating concept. Interesting to note that they can offer this product in highly cashflow positive locations like Moranbah.
The only concern I have is the cashflow considerations for the building products company that doesn't have any funds coming in for the next 5 years. Surely it can't be a sustainable model?
For the Sellers I am assuming 80% is better than 0%. I think the sellers would make ther money from over pricing the product which does mean the average joe will have to pay rather than redraw his loan if he wants to keep the property in 5 years as he won't have the equity.
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