All Topics / Creative Investing / VF/WRAPS for South Australia

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  • Profile photo of NaniNani
    Participant
    @nani
    Join Date: 2003
    Post Count: 38
    October 4, 2011 - 4:45 am

    Hi

    We are looking at possibly doing a VF / WRAPS for a property in SA.

    Can anyone recommend a legal or VF contact for SA who can assist us with this?  It is our first time!!

    Thanks!

    Nani
    Email Me

    The road to success is always under construction

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    October 4, 2011 - 12:36 pm

    Hi Samson

    I'm no expert on VF in SA because I've tended to keep away from it as it's pretty unfriendly towards VF.  Instalment Contracts (sometimes called Wraps) are banned and I hear Lease/Options (Rent to Owns) have been limited to six months.

    The only VF technique I know that is allowed is Deposit Fiance, i.e. when you sell a property where the buyer gets a first mortgage and you loan them the remainder as a second mortgage.  Unfortunately this VF technique has been slowed down, Australia wide, by the GFC and the new Responsible Lending requirements of the National Credit Code.  However there are still a few Brokers around that have some success getting these across the line.

    I hear that some people are trying to work with Lease/Options in SA buy rolling them over every six months but I'm not sure how that's working.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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