Hi all,
Michael Gruber from the VFA has requested a project which will compare installment contracts, lease options and licence to occupy against shared equity. The report will give an explanation about each lending concept and will go into some detail in table form providing a sound financial argument.
To give you an idea of what this is all about -
On 20 September 2002 John Howard commissioned a Home owner's task force through the Menzies research centre in Canberra. This was done due to the difficulty faced by many first home owners who could not get finance. This report was sponsored by many organisations with Wizard Home Loans being one of the biggest supporters. The report and consequent releases by the Government started throwing around the concept of shared equity where a financial institution becomes a partner in the home. The buyer pays a lower mortgage amount but the institution will take a huge portion of the capital gain, up to 40%. I will not go into too much detail just now.
What we believe is that vendor finance as a tool to purchase a home is much fairer on first home owners who cannot get traditional finance than the shared equity concept would be. So in a nutshell if the Government can promote a concept which is less suitable for home buyers than vendor finance then we will have a strong case to lobby Government and the finance sector as to the benefits of VF.
I now ask for assistance for all of you who want to continue providing vendor finance to home buyers.
It is important that we gather a list of any person or organisation who should receive this report when it is completed. We know who the popular ones are in Government but who else should receive it. If you know of details of any person such as bank execs, gov't, consumer organisations, media etc then let me know. Post it here or email me so that we can gather a comprehensive list. It is important that the right people are contacted and just maybe we will get enough support to change legislation and regulate this industry. Just imaging if vendor finance was promoted by Government instead of shared equity. Ah the possibilities will be endless.
Please help by supplying any names and contact details that you can think of.
A copy of the summary of findings can be found here if you want to have a look:
http://www.mrcltd.org.au/content.cfm?PageID=Hot6&HOTFflag=1
I look forward to everybody's input.
Regards
Scott Leary
Email: [email protected]
www.homebuyerconnections.com.au
Michael Gruber from the VFA has requested a project which will compare installment contracts, lease options and licence to occupy against shared equity. The report will give an explanation about each lending concept and will go into some detail in table form providing a sound financial argument.
To give you an idea of what this is all about -
On 20 September 2002 John Howard commissioned a Home owner's task force through the Menzies research centre in Canberra. This was done due to the difficulty faced by many first home owners who could not get finance. This report was sponsored by many organisations with Wizard Home Loans being one of the biggest supporters. The report and consequent releases by the Government started throwing around the concept of shared equity where a financial institution becomes a partner in the home. The buyer pays a lower mortgage amount but the institution will take a huge portion of the capital gain, up to 40%. I will not go into too much detail just now.
What we believe is that vendor finance as a tool to purchase a home is much fairer on first home owners who cannot get traditional finance than the shared equity concept would be. So in a nutshell if the Government can promote a concept which is less suitable for home buyers than vendor finance then we will have a strong case to lobby Government and the finance sector as to the benefits of VF.
I now ask for assistance for all of you who want to continue providing vendor finance to home buyers.
It is important that we gather a list of any person or organisation who should receive this report when it is completed. We know who the popular ones are in Government but who else should receive it. If you know of details of any person such as bank execs, gov't, consumer organisations, media etc then let me know. Post it here or email me so that we can gather a comprehensive list. It is important that the right people are contacted and just maybe we will get enough support to change legislation and regulate this industry. Just imaging if vendor finance was promoted by Government instead of shared equity. Ah the possibilities will be endless.
Please help by supplying any names and contact details that you can think of.
A copy of the summary of findings can be found here if you want to have a look:
http://www.mrcltd.org.au/content.cfm?PageID=Hot6&HOTFflag=1
I look forward to everybody's input.
Regards
Scott Leary
Email: [email protected]
www.homebuyerconnections.com.au
