When doing a Lo's are you guys using variable or fixeed int rates?? the problem is if you lock in for 5 years and then the purchaser decides to refinance after 3 years they pay hefty penalties. But then if you use variable your lease repayments are always changing & you are probably then exposed to the UCCC. Comment would be much appreciated.
LO's avriable or fixed int rate??
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I offered the buyers the choice. All the Qld guys went fixed and had to pay penalties.
In NSW and Vic the buyers went variable and were glad they did.
I think it depends how long you want your deals to last. If you want them refinanced sooner then keep it variable. Or fix for a shorter time.
I think 5 year fixed is way too long for a L/o or wrap. 5 years is an eternity for these buyers.
I fixed for 3 years and have none of those anymore.
Regards
Paulzag
Dreamspinner
In NSW and Vic the buyers went variable and were glad they did.
I think it depends how long you want your deals to last. If you want them refinanced sooner then keep it variable. Or fix for a shorter time.
I think 5 year fixed is way too long for a L/o or wrap. 5 years is an eternity for these buyers.
I fixed for 3 years and have none of those anymore.
Regards
Paulzag
Dreamspinner
What state are you in?
My Lease/Options were two separate transactions $X for the rent and subject to Residential Tenancies Tribunal. $Y for the Option payable monthly (though I did accept weekly).
The option at the time was not regulated by UCCC according to the advice I got. But things may have changed.
Regards
Paulzag
Dreamspinner
My Lease/Options were two separate transactions $X for the rent and subject to Residential Tenancies Tribunal. $Y for the Option payable monthly (though I did accept weekly).
The option at the time was not regulated by UCCC according to the advice I got. But things may have changed.
Regards
Paulzag
Dreamspinner
I am from VIC. If you run the lease for longer then 5 years this exempts me from complying with the RTA.
The reason I asked about the UCCC is, if you decide to go variable int rates your lease payment is going to be changing all the time. This being the case you are affectively providing finance and not receiving a lease payment at all.
The reason I asked about the UCCC is, if you decide to go variable int rates your lease payment is going to be changing all the time. This being the case you are affectively providing finance and not receiving a lease payment at all.
