As soon as you are done reading this you’ll have greater knowledge of seller financing in Australia!
It is often referred by solicitors as vendor finance, parents see it as seller finance. This has been around Australia from the late 1800s and has been the trend throughout the country, ever since.
Seller finance takes places whenever a seller moves his property’s financing structure to a potential buyer.
The Industry is as huge! It is as gigantic as the “titanic” and it is still growing. In reality, a lot of areas and companies in Australia took advantage of this seller financing since because it is an excellent option.
One of the largest apartment developers called Meriton, has embarked on vendor financing since it has started. Up to now, they are still successful in building their luxury apartments.
There have been four areas sold, based on the records of the Land Titles Office in Sydney. These areas were North Sydney, Chatswood in Sydney, Blue Mountains and Newcastle.
Without a doubt, more and more people jumped on the bandwagon of vendor financing. Developers even admitted that they are redoing project homes through vendor financing. Today, majority of the houses have been bought at low deposits because of the wonders of vendor financing.
There are 70% of people from the market who initially try to save the deposit for getting a property, then they would also loan from the bank. The obvious disadvantage of this set up is, the banks will still require for deposits even when the First Home Owner no longer functions. This is the perfect time for seller financing to come in. Rather than catering to the 70% of the population, seller financing opens up a wider opportunity for prospective buyers from 70% to 100% of the market.
There are many folks out there who may have good jobs but don’t actually have sufficient savings history that can qualify them to get a loan from the bank. However they do have income to sustain the mortgage payments and the need and eagerness to buy a property. Since the traditional method of property selling can’t help these folks, seller financing will definitely help them out by assisting them with their needs. While the traditional method of selling is only applicable to 70% of the market, seller financing exceeds that by servicing 100% of the market.