I was listening to the radio today on a talk back show and a prominant Adelaide real estate agent was offering his opinions on rent to buy programs (lease options).
First he was shocked that this was happening (how dare someone take business away from them!!!) and wasn’t sure if it was legal!
Investors have always known that it is! HELLO!!!!!!
He then said that it is a great idea that helps first home buyers get into the market but offcourse there is a downside in that if the purchase dosent go ahead, the buyers loose their deposit.
Well, this is very unlike normal purchase contracts where offcourse all your deposit is refunded if you pull out before settlement! NOT!!!
In Adelaide there are some appartments that were being sold off the plan for $900,000, they are now built and valued at $730,000. Buyers are forefeting their $90,000 deposit because they cant meet the loan to value ratio to go ahead with the purchase. They are getting sued by the developers who are trying to force them into the sale. This entire scheme was set up by AGENTS!
If instead of going through agents, they were granted an option to purchase the appartments, they may have lost $10,000 instead of $90,000 and the developers would have no grounds to sue them on!
All this was overlooked on the radio station,
Despite acknowledging on air that he had done one day of research into it and didn’t know much about it, the agent then asked anyone that want’s to enter into a rent to buy program to contact him first and he will give them some ADVICE.
It makes me mad that not only are agents giving out investment advice by referring people to their current negatively geared listings, but now they are giving out LEGAL advice!
Just wondering if anyone else heared the conversation (5AA at around 3pm, April 26) and what your thoughts are!!!
Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582I’m just surprised people use rent to buy rather than the various loans structures out there..such as lo-doc, no-doc etc if they are having problems with regular finance?
I’ve even hear of people using finance from Churchs and Solicitors though andthink you need to explore all options and take the best course of action foryour personal situation..
I’m more interested on what your opinion of Rent to Buy Programs are Dr X ?
(genuinely interested as well…NO agenda here)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHey Red,
Yes finance is getting easier and that is providing competition for us, however there are still alot of people that can’t get finance and I’m not talking about battlers!
Self employed people without at least 2 years of profit and loss statements find it difficult to get loans.
People that have been bankrupt, and it happens to good people due to divorce, illness, failed business etc…
People with poor savings records and good jobs!
etc.What I mean by rent to buy is a lease with an option to purchase,
it helps the buyer build a deposit in the property and to show a paper trail of payments that helps them get finance to buy the property in the future.
It also helps the landlord/investor increase their cash flow, decrease their risk to market conditions and obtain a premium price for their property (built in capital growth at purchase!)
It is win/win/win!
Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582ps,
thanks for your input on the company names too.still need to check if they are available, but they all sound great!
LOVE IT!!!
Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582Sorry, I missed it. But I know who your talking about – Ace T. I hate the morning radio announcer with a passion. A massive hypocrit – he shouldn’t have his job back![grrr]
I reckon that it is unfair that you group the shoe shine boys with real estste agents!!!! Ha Ha![biggrin]
Regards
Investor1313
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