Hi everyone,
have just purchased a block and are currently building on it. I know there are some savy VF guys on here and my question is if anyone has had any experience in selling via VF off the plan? if so, any advice would be appreciated.
I'm involved with two other investors, a builder and a lawyer this reduces our overall costs dramatically, and allows us to make the premium on the purchase price extremely competetive in regards to market value.
Any advise would be greatly appreciated.
cheers
You can't wrap property under the NCCP unless you have a licence and adhere to responsible lending. There could be an exemption if you aren’t doing it commercially – like it’s a one off.
However, you could look into rent to buy, there was a recent post on here which suggested that ASIC too was targeting a lease option scheme (when selling) as it was bordering on a credit contract.
Be sure to have a backup plan if things go sour.
Thanks for the reply.
We are currently trialing to see if there is a market for VF in our area, so it kind of is a one off, unless we see potential in which case we would go through the process of the ACL application for future deals.
I was under the impression that like you stated above an exemption applied if non-commerciall. Please let me know if this is incorect.
cheers
Hi JML
As Kent says, you can't provide a credit or credit assistance to a consumer, "in the course of a business", unless you have ACL Coverage for that transaction. This ACL coverage can come in the form of your own Australian Credit Licence or by becoming a Credit Representative of an ACL holder. More information on ACL Coverage is available at:
http://www.vendorfinanceinstitute.com.au/home/?page_id=10You could go down the path of selling these properties with a Lease/Option but the government doesn't regard this as a real sale and won't pay the FHOG for this type of transaction. If you sell with an Instalment Contract (requires ACL Coverage), your buyers can claim all the FHOG benefits.
Thanks for the PM, I'll reply to that too.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul much appreciated!
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