Hello,
I am a single mum, working part time and have a total income of approximately $650 gross per week (including child support & parenting payment). I would like to break away from the rental trap if possible and have noticed in my local papers, private ads offering a house to buy privately with finance organised by the seller. The weekly amount is usually about $50 – $90 more than what I pay in rent per week and I am wondering if anyone is familar of these type of offers.
justinsmum
Hello Justinsmum,
great to hear you are gathering confidence to buy yr own property.
You go for it!
There are many ways you can do it.One of those is vendor finance or”wrap around finance”.This is what those adds usually refer to.These are ok if the terms are fair for both partys and you have a good solicitor on board with yr interests at heart.
You could do a search on this forum under “wraps” and you will find lots of info to learn about it.
Just keep in mind though that it may not be out of the Question for you to get a loan through a broker or a bank which is usually at a better rate and terms.
All the best
DematioWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
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Hi Justins mum
Which State are you in?
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
I wouldn’t be too dsesperate if I was you.
It may lead you into accepting terms that aren’t in your best interests
It may lead you into paying too much when an agent detects that desperation and
There is no need to be too concerned. Average house prices are not rising at the moment so you have some time to start working on that deposit and finding a great deal.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
these vendor financing or rent to own situations can offer great benefits for both parties involved and can certainly help people out of the rental trap.
You need to get independent legal advice, get a soliciotor to look over all paperwork to ensure that it is set up right. The biggest risk is if the vendor goes bankrupt and leaves you with no title, there are measures to take to minimise this. speak with your solicitor and see what they could put in place for you!
They are great if they are done right!
We buy properties in Adelaide. No Agent Fees.
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phone 0412 437 582hi justinsmum
couple of things first talk to alocal broker and see if you can’t buy out right,find out you max lend and come back with what the lend is and the value of the property in the area you are looking at and see if we can’t give you some pointers from there don’t need all the details, just this is the amount available and this is the type, value in that area .
secondDr.X and Mortgage Hunter can’t you caveat the property that you are the wrapaee to so it can’t be sold under you interest try not sure where you stand I’m not a wrapper know a bit about it but its not my area.
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If you want to get involved in some of the projects I’m involved in email to [email protected]Gross.
Can usually caveat, if the contract allows it. But this will not prevent the property being repossessed by the lender if the wrapper fails to pay.
Terryw
Discover Home Loans
Parramatta
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Terry
The Contract cannot stop you placing a caveat on the property as it is the Property Act which makes this provision as protection for the wrappee however i agree with you this still gives no protection to the purchaser in the event of the wrapper going into bankrupcy.
In saying this i have seen certain contracts which state that a caveat cannot be lodged which is clearly in breech of the legislation.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Richard
You’re right. Anyone purchasing via an option or installment contract would have an equitable interest in the property and therefore be entitled to lodge a caveat.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Justinsmum
I guess that the most concerning part of your post is the word ‘desperate’. There’s no reason to be desperate and I figure that this is merely a figure of speech. It pays to be patient and find the right deal so that you don’t act too hastily and make some decisions that you may regret further down the track.
The fact that there is very little to describe your full situation, I ask you to ask yourself these questions….
1. Have you considered consulting a financial adviser to assess your overall financial situation/plan or maybe prepare a plan for you?
2. Have you approached a lending institution to discuss traditional finance?
3. Have you explored other options to finance your purchase, as there are many available?
4. Are there any family members or others who may be able to ‘lend’ you some equity for a stake in your house until you can pay them back or sell?
These are some of the questions you can ask yourself and perhaps pursue before deciding which way you will eventually go. There’s plenty of time and the worst case scenario is not necessarily your position now (renting) but what an ill-informed decision may lead to down the track.
Good luck.
All the best…Giraffe
“Real Estate – The Foundations of Wealth”
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Email MeHello justinsmum,
Many a time over the years I have extended my investment reach beyond my borrowing capacity.
By partnering up with other investors.
As a basic example you put in half the money and the other investor puts in the other half.
Just make sure you do your homework on your partner/s and the investment.
Always look before you leap.A few weeks ago I was approached by a good friend who has been my building maintenance manager for many years to consider an investment partnership.
He is a fantastic very skilled builder but poor saver and investor.
After 40 years in the work force he wants to retire and has made the discovery that at best his supper rip off is nothing more than a house deposit.My friend wants to get out of the city and retire in the country.
He still wants to do some work but with out the rush.
This is the trap if I invest with him.
Time is critical to the return on an investment.He is offering that we purchase a property half each.
He will renovate it while I pay the materials cost; his labour is his additional contribution.
When he has finished we sell the property and split the profits and use some of it for the next investment deposit.He is not looking beyond one property at a time.
Or considering that over time the capital growth from 10 is better than 3 to 6 months of equity gain due to the renovation work.
He wants to sell out as soon as there is a capital gain to be had.Now he is a nice fellow but I can’t proceed unless we can get the investment down to a reasonably short period in other words he can’t work just when he feels like it.
He needs to get it done then take a month or two off before head down bum up into the next investment.Now justinsmum I am mentioning this to you because there are many people out there in the same situation as yourself.
I believe in TEAM (Together Everyone Achieves More).
Find someone who has the time or skills you don’t have and partner up.Suggestion purchase a house together, renovate it, then one partner buys out the other using the extra value in the investment.
And there is nothing stopping both of you from doing this over and over.If you have any questions send me an email.
Perhaps you can include the abilities and skills you have available to bring to the party.
MONEY=TIME=KNOWLEDGE WORKED.Your friend Colin,
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Home 02 46531376.
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For all your CLEANING and GARDENING work.
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tomorrow’ Richard Denny
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For all your CLEANING and GARDENING work.Colin
You are right nothing to stop you
“one partner buys out the other using the extra value in the investment.And there is nothing stopping both of you from doing this over and over.” it is just the stamp duty and CGT you have to build into working out whether it is viable or not.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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