Hello all, I have a brief question on vendor finance in Adelaide, Is it legal to do this here as I have heard various answers. Is it just called something else here or is it the only state that does not allow. I dont understand why we would not be able to provide to people the same help as other states around Australia.
We have a property in Morphett Vale which we were thinking to sell via vendor finance. Any info would be appreciated.
Thanks in Advance.podney wrote:Hello all, I have a brief question on vendor finance in Adelaide, Is it legal to do this here as I have heard various answers. Is it just called something else here or is it the only state that does not allow. I dont understand why we would not be able to provide to people the same help as other states around Australia.
We have a property in Morphett Vale which we were thinking to sell via vendor finance. Any info would be appreciated.
Thanks in Advance.you could contact OFFICE CONSUMER AND BUSINESS AFFAIRS, OCBA, and ask your question there and look on their website for info re real estate guidelines in sa.why do you want to sell your property under vendor finance conditions? what is the benefit to you?
We are looking to keep in CF+ and so we can continue buying houses. As it stand we are a ittle maxed out with the banks. We did try selling it not long ago but fell a bit short of the money needed. It is a positive house at the moment through holiday rental but the banks do not regard holiday rentals as a permanent rental agreement. There is quite a few reasons and we are open to all suggestions.
Cheers and thanks for that I will have a look on the site.Darren you cant sell the property in SA through an Instalment Contract (Wrap) but nothing to stop you doing so through a Lease Option.
Richard Taylor | Australia's leading private lender
Thank you Richard,
I will do some reading into that. At a guess, would I use my conveyancer to set this up.
Time for some more research.
CheersHad a look on the OCBA web site and come up with this bit of information. Might be a bit of a problem here in SA.
http://www.ocba.sa.gov.au/consumeradvice/realestate/method/rent2buy.html
Well does not say it cant be done but think there is a fair amout of risk.Hi Darren
My information on vendor finance in SA goes like this:
1. You can use an Instalment contract in SA to sell a property but you can't charge interest.
2. Towards the end of 2009 the SA government put new regulations in place further limiting your ability to sell your property with a Lease/Option. Lease/Options had been the preferred method of getting around the restrictions on Instalment Contract, up until this time.
3. You can legally supply a 2nd mortgage in SA. Therefore this technically does allow you to sell your property with a vendor finance technique called "Deposit Finance". However with a lot of the traditional lenders wanting proof of closing funds and proof of a savings history, this is making "Deposit Finance" harder and harder to get across the line.SA has become so VF unfriendly that a friend who had been working and living in SA, as a vendor financier, for thelast 5 years, finally gave up at the end of last year and moved to Melbourne. His comment was that the SA government had finally made it "just too hard".
Do you have another property, in a State other than SA, that you might want to turn to positive cash flow
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul,
Good old SA, Guess we will have to stick to the conventional way for now. when we are a bit more set up will start looking interstate.
Thanks everybody for your help.
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