I've got a house advertised on Gumtree and have had several requests for vendor finance.
It strikes me as a Very Bad Idea from every angle. I have the house rented out at $110pw at the moment, assuming someone did the vendor finance thing they'd give me $15,000 as a 20% deposit and then pay at, say, 7% or more for the rest of it - barely $80pw interest, plus some principal, and I'd assume the only thing that is different to being a landlord is they pay the council rates and maintainence not me. And where does the vendor finance money come from, anyway? I don't own this house freehold, I do owe money on it.
At those kind of figures, why not just get a normal loan already! Then at least I'd get a big fat lump sum to put on my new house.
Mumble grumble @ financially challenged people looking to buy cheap houses. There are slightly cheaper houses than mine for sale on the same STREET, they are just not as nice and don't have the whole brand new roof, brand new tanks and completely rewired thing happening. If I was getting a house between $65k and $75k I'd take one with the new roof/wiring/tanks (worth about $30k new) over the one without for $10k less anyday.
It strikes me as a Very Bad Idea from every angle. I have the house rented out at $110pw at the moment, assuming someone did the vendor finance thing they'd give me $15,000 as a 20% deposit and then pay at, say, 7% or more for the rest of it - barely $80pw interest, plus some principal, and I'd assume the only thing that is different to being a landlord is they pay the council rates and maintainence not me. And where does the vendor finance money come from, anyway? I don't own this house freehold, I do owe money on it.
At those kind of figures, why not just get a normal loan already! Then at least I'd get a big fat lump sum to put on my new house.
Mumble grumble @ financially challenged people looking to buy cheap houses. There are slightly cheaper houses than mine for sale on the same STREET, they are just not as nice and don't have the whole brand new roof, brand new tanks and completely rewired thing happening. If I was getting a house between $65k and $75k I'd take one with the new roof/wiring/tanks (worth about $30k new) over the one without for $10k less anyday.