In regards to the IO loans you manage, what does your contract say in terms of how the following is determined;

– interest is calculated
– arrears are calculated
– extra payments are calculated

These questions also apply to the honeymoon rates.

I would like to develop these features, however I first need to understand the user’s…[Read more]

Isnt the reason why the banks are restrictive with what they do becuase the buy money in a different way to lend to IO opposed to P+I?

True, however this topic is to investigate how vendor financiers manage interest only loans. In nearly all cases their funds are either wrapped around an existing loan, or created as a second mortgage to sell…[Read more]

My name is Michael Gruber, co-producer of LoanAlert. I do apologise that the trial version that is on the website is version 1.

However the latest release is v1.03 which includes bug fixes as well as some features on the information panels to assist the user.

Our current method of supporting inquiries is, rather than issue the tradional…[Read more]

Section 26 of the Land Tax act for NSW is the part you need to read. It covers it all there.

In essence, the wrappee;

– must have possession of the property
– have purchased with a valid contract
– have the rights as if they were the owner (ie can rent property out etc)

Regards
Michael G

Check out section 13 of the FHOG act for qualifying and understand the meaning of “possession”; and

Check out section 26 of the Sale of Land act for examption of the land tax and again understand “possession”

You can find the acts at http://www.austlii.edu.au

Regards
Michael G

To say wrapping is illegal in W.A. is to say that driving a car in W.A. is illegal – both are illegal when done unlicensed – this is the point of the Consumer Affairs article – their view is that wrapping is a legitimate form of credit providing and as such falls under the credit code – which in W.A. must be done with a credit providers…[Read more]

Contact a business enterprise center (BEC) or BASI at Blacktown etc they are non-profit organisations which are run to help new and small businesses with free info and small business courses.

Regards
Michael

I understand – actually never can happen in a flash – what most media don’t understand is that the credit code offers a lot of options to consumers along with protection.

Which is why even default means the consumer has 30 days to recover it.

Alternatively they can request hardship allowance if in serious trouble (in this case they were on…[Read more]

What about telling people that people that someone sold a house who’s name is not even on the contract?

http://www.jenman.com.au/NewsNews1.php?id=314

The point is, didn’t buy it, didn’t sell it, didn’t advertise it. So if not defamation, what is it? And this is my real name

Or forget to mention a stack of other relevant details.

At this…[Read more]

Just a thought, why not speak with bank you have your accounts with. See if there is a way where you can set up a joint signatory account where the wrapper and wrappee jointly sign. Then arrange two direct debit facilities (which are also jointly signed);

#1 to pay for 1st mortgage
#2 to pay for wrapper’s margin

This way money cannot be…[Read more]

If you do need to sell, another alternative – rather that wrap the whole lot – maybe offer to vendor finance just the deposit to a FHOG qualied borrower. This would mean your mortgage would be paid out on settlement.

and the deposit could have a monthly payment with a payout in 1-5years

Just a thought
Michael Gruber

Now you will need to list the criteria of what defines an “average everyday mum and dad investor”.

Regards
Michael Gruber

Could you please give us your definition of “spruiker”?

Having only recently completed my term as President of the VFA, I would like to know what you are implying about the time I have spent in charge of the VFA?

Regards
Michael Gruber

Actually I’ve read that this threshold has been raised – I can’t remember the exact figure at the moment, but I think is has been approximately doubled.

Regards
Michael G

You are referring to Section 66 – Changes on grounds of hardship http://www.austlii.edu.au/au/legis/qld/consol_act/ccc176/s66.html

Regards
Michael G

In Rick’s case you are correct, in my case is was – and yet a story was still published with facts incorrect. The point was that in both cases the media was looking for a specific angle – as you read from the transcripts the interviewer was fishing for particular sound bites to edited into their story.

Would you agree that the media wanted…[Read more]

From personal experience, it might be because even when you cannot comment due to the Privacy Act, they will just write a story anyway – regardless of facts.

But that is just my personal opinion

Regards
Michael Gruber

Have a look at http://www.ezidebit.com.au as a possible alternative.

Regards
Michael

Michael Chin – 02 9771 0557

Regards
MichaelG

Unless the unit is the person’s principal place of resident then they can provide vendor finance without a license.

However if they are in the business of vendor financing and selling places in a business like manner then contact the Department of Consumer and Employee protection to verify it would be ok to sell the PPOR.

Do some research -…[Read more]

First – funny signature for a wrapper (Buy Now – never sell)

The quick answer to your question is you do not include the figure in your Home Loan Analysier program.

Here’s the long answer…

Your operation is similar to many setups I’ve heard about. Let’s break down the process and it will be easier to understand (by the way I am no…[Read more]

Actually that is incorrect – the Government agency that manages credit licenses once spoke at the Vendor Finance Association’s meeting in W.A. and was very clear about what can and can’t be done.

You cannot provide vendor finance in a business like manner without a credit providers license.

However you can provide vendor finance if you are…[Read more]

You will find with all mortgages it is a condition of the loan that adequate insurance is taken to protect the security. You will find that the same condition is applied to wraps, i.e. its not something that’s optional.

Michael G

Some great info, however in the meantime I am arranging for a speaker from the ATO to come along to the Vendor Finance meetings to speak on this issue too.

Regards
Michael Gruber
President
Vendor Finance Association

This is about proper structuring of assets. When the property is purchased in a trust and the trustee is a company. Then the property is actually not owned by the wrapper and shielded from liquidation.

However, as I said, all these questions will be reviewed by our advisors to create a standard “best practice” for the FAQ. So the…[Read more]

I believe the reason such options are only available by mainstream lenders and not wrappers is because such structures do not maximise the captial a wrapper has available.

I understand your viewpoint and I know it is one which creates a lot of debate. However that structure you propose is freely available other leaders.

As that niche…[Read more]

The Government understands the both sides of the arguement and is working towards a goal that will balance both sides of the equation i.e. protecting consumers through better disclosure and maintaining an environment where those who wish to provide vendor finance may do so.

And the question whether vendor finance and creative funding…[Read more]

Yes, however at this stage it is still in draft form. However the general context is;

– compliance with the consumer credit code
– easier to understand (plain english) documents
– more transparent disclosure on terms and conditions.

Regards
Michael Gruber
President
Vendor Finance Association