Vendor finance has always been used and is now becoming more and more popular for buying and selling real estate in Australia. This has been an accepted way to buy property in Australia for over a hundred years. Vendor Finance generally suits people who can’t get a home loan at the same time that they need a home and
the process does not involve banks or real estate agents.
It can be a very effective Property investment strategy for the following reasons;
1. Vendor finance can help solves issues for buyers with low deposits, minor credit defaults or a lack of equity
2. Vendor finance allows buyer sto move in as soon as they satisfy the seller’s requirements
3. It can work for investors who are self employed who may have insufficient financial records to obtain a loan from a financial institution.
When you buy your house with Vendor finance, you will receive a Contract of Sale that includes additional information about your loan repayments.
You will receive regular statements which has the additional benefit of assisting you in refinancing with another lender, which you are entitled to do at any time. Buying with vendor financing means negotiating
1.the rate of interest placed on the loan
2.the amount of the loan payment
3.the length of the loan
4.and any other contractual items that may be important to the agreement.
No comments:
Post a Comment