2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
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  • Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Follow-up newspaper report to a 'rent-to-buy' issue in WA. This matter was first reported approx 6 months ago.

    Click here for more information

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Derek

    I have been saying to vendor financiers for some time, that 'the authorities' would find a way of regulating Lease/Options, the only remaining vendor finance technique not regulated by the National Credit Code.  I thought they may accomplish this regulation by an amendment to the National Consumer Credit Protection Act 2009 but the various, State based, real estate agent legislation may just do the job.

    Regarding this case in WA, it has created a legal precedent and it will be interesting to see how other States react.  We have already seen a lot of vendor financiers become Australian Credit Licence holders and authorised Credit Representatives.  In the not too distant future I believe a lot of vendor financiers will become licensed real estate agents, with even more becoming Agent Representatives.

    We saw this coming and got our real estate agent licence last year.  All good for the industry from my point of view.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of Brian31Brian31
    Participant
    @brian31
    Join Date: 2012
    Post Count: 10

    I was sent this same article by another investor I know in WA (luckily he is not into rent to buyand nor am I) and I think that ultimately it wil have implications across Australia.

    Profile photo of M.InvestigatorM.Investigator
    Member
    @m.investigator
    Join Date: 2012
    Post Count: 134

    Before buying any property, make sure the estate agency is reputable and has proper documentation to sell properties. Some adverts posting “No down payment plan , Rent to buy scheme" etc. should be scrutinized further.

    It’s good to know that victims of this scam can seek compensation. Potential victims are also encourage to  call the WA Consumer Protection on 1300 30 40 54

    Profile photo of kentotoolekentotoole
    Member
    @kentotoole
    Join Date: 2012
    Post Count: 19

    This news is a good reminder to those buyers out there who are not very careful when it comes to this matters.

    Profile photo of charlescrowleycharlescrowley
    Participant
    @charlescrowley
    Join Date: 2012
    Post Count: 12

    $15,000 is cheap. I would have been deceived too if it was me.

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    I am glad that rent to buy victims are able to seek compensation. It is terrible to make money on other people’ desperation to own a home. I also wonder how other States will react to this new precedent.

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