"What a book !!! Onya, Olly Newland ...."

From: Les .



G'day all,

Those attending the Xmas dinner would have caught sight of a book that I was fortunate enough to come across - "The Coming NZ Property Boom" by Olly Newland (1978).

I finished it tonight, and thought I'd share one of the gems .....

What do you all think of this statement -

"Another useful device when selling on terms (i.e. vendor finance) is to provide the loan you extend on interest free terms" and he follows this up with "Before you collapse in a heap, consider the techniques and advantages.... "

So, fellow investors, your mission (should you choose to accept it) is to ruminate on the "techniques and advantages" that might arise from such an unusual arrangement.

By the way, even in Australia, this could have some very direct benefits - what could they be ???? ;^)

Regards,


Les


- "Eschew Obfuscation" - ;^)
 
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Reply: 1
From: Michael G


Les,

Well if you were selling your family home, then if you up the loan amount sufficiently, then the whole deal would be tax free, cause you wouldnt there wouldn't be any income from the interest of the vendor loan?

And if an investment property, then I guess you'd only pay 50% of the capital gain after the 1st year of the term? hmmm need accountant help on this one.

Just a thought
Michael G.
 
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Reply: 1.1
From: Rick Otton


to those in western australia providing the loan on interest free terms would get around the state law of having to be a credit provider
Rick Otton
 
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