Hi jaster12Yes the new Act does have provisions that allow one off credit transactions for individuals such as yourself.  However the "gotcha" is that the setup and on going running of the transaction still has to be as per the requirements of the new National Credit Code (NCC).I suggest you find a Registered or Licenced ACL holder to undertake…[Read more]

Hi slipperThe ACT's RTA puts it like this:"Can the bond be increased as well? No. Standard term cl 15 says that only one bond is payable on any one tenancy agreement.RTA section 20 specifies that a landlord may only require or accept as bond an amount not exceeding the first 4 weeks of rent payable under the tenancy agreement.This means that the…[Read more]

Hi energy4anarchyWe've used BMT in the past and paid quite a bit more than DEPPRO's $450.  Thanks for the tip Cheers,  Paul

Hi fifintoneWelcome to the forum.  I hope you enjoy your time here and get some wonderful ideas.I'd suggest you both decide on an area of investing that really "grabs" you and zone in on that.  If it happens to be real estate, you've come to the right place, as there is a large range of diversity here and that diversity will allow you to drill d…[Read more]

Hi KarenPeople who buy the homes with a vendor finance Instalment Contract are very happy with this requirement.  With an Instalment Contract, contracts are exchanged but settlement doesn't take place for anything from 5 to 30 years.  Of course, in the meantime, the buyer has to pay instalments to the seller but Stamp Duty is still only p…[Read more]

Hi AndrewIt's early days yet but the following should help:1.  Become a Representative of an ACL holder2.  Do a joint venture with an ACL holderIt is also important to remember that the new Act stipulates that you only need an ACL if you are "in the business of" providing credit or credit advice.  If you want to do one or two vendor finance tr…[Read more]

Hi AndrewTo Register for the ACL and thereby be allowed to continue providing credit or credit advice until 31 December, you must Register with ASIC before close of business tomorrow (30 June).  The registration process requires you to join an External Dispute Resolution provider, e.g. the Credit Ombudsman Service Ltd and then go onto the ASIC…[Read more]

Hi JasonIf you register before 30 June, you can run your vendor finance business, in accordance with the new National Credit Code, up to 31 December 2010.  This effectively gives you from 1 July to 31 December to apply for your ACL.If you do not register before 30 June you may not be in the business of providing credit or credit advice until yo…[Read more]

Hi starbabyI've got to agree with Terry.  I just can't see a way to get this to work and, even if you could, there's no software currently available to allow the seller to administer the arrangement.Cheers,  Paul

Hi starbabyI've got to agree with Terry.  Also, could you clarify if your question refers to Rent To Own (Lease with an Option) or an Instalment Contract?  It would be theoretically possible with an Instalment Contract but I don't know of any software available to vendor financiers, that could do the job.Also, just interested why you'd like to o…[Read more]

Hi PaperChaserI've got to agree with sonyasal and like you, we believe our long term wealth is measured by the amout of equity we have in property. To accomplish this we use both +cf and -cf.Our +cf properties are properties we buy and on-sell with vendor finance and our -cf properties are the properties we plan to hold forever Our +cf…[Read more]

Hi magsmgOne area of vendor finance is the rent to own strategy.  We usually sell with a vendor finance Instalment Contract (IC).  It is more like a real sale as the government pays the FHOG to eligible first home owners that buy their first home with an IC.I'd guess that their would be a potential buyer in Broken Hill that may be interested in b…[Read more]

Hi number 8The Wrapee: Is the Stamp duty concession for First home owners still available?  Yes, in all states that have a stamp duty concession for first home owners, this concession is also available for first home owners buying their home with an Instalment Contract (IC).I'm guessing that just about all vendor financiers require the deposit t…[Read more]

Hi magsmgDo you have to sell right now?  If not, is the property producing positive cash flow?  If it is why not hold, enjoy the positive cash flow and wait until values increase again.If you do have to sell but don't need all the money right now, you could sell it with vendor finance.  This type of sale may allow you to sell at your purchase pr…[Read more]

HiOne of the great things about vendor finance in real estate is that it can be done so many different ways, e.g. some people may structure the on-selling Instalment Contract for the long term, to enjoy the interest rate differential over the long term and some may structure the on-sell to encourage their new buyers to refinance into a t…[Read more]

Hi number 8We have a couple of good examples on our web site but here's a quick outline, if you bought a property for $400k tomorrow and subsequently on sold it with an Instalment Contract for a higher price.A well structured project requires the following actions to be successful:1.  Arranging financing for your loan2.  Locating the right p…[Read more]

Hi Mrs PropertyWe've worked in vendor finance since 2003.  Karen & I now work in thebusiness full time and it provides our lifestyle and also supports our buy and holds.Sorry about the lack of specific numbers you asked for but, if you're checking to see if it's possible to live off a specific niche in real estate, in our case, it is.Cheers,  Pa…

Hi Jo-AnneYes, it is possible to run two different businesses in both programmes.  We ran two in MYOB and now run four in Quickbooks.Cheers,  Paul

Hi Jo-AnneWe have quite a number of properties and we use Quickbooks Accounting Plus.  We used to use MYOB but our book keeper prefers Quickbooks so we changed over.  Our accountant is happy with either of these products.Once you or somebody you hire sets up the "chart of accounts" in either program, they both then become reasonably easy to wo…[Read more]

Hi ShelleyGreg brings up an interesting point about Stamp Duty.  Unlike NSW, in Victoria Stamp Duty is not payable until the sale is completed, i.e. in the case of an Instalment Contract, the term of the loan or whenever the loan is paid out.  Also, in Victoria, the state government pay the FHOG on exchange on contracts.The ATO has a ruling a…[Read more]