Why do Australians love seller financing? Is it an option which they can truly benefit from?
You bet! Many have embraced this great opportunity and they're living happily in their own homes.
With traditional financing, it's the bank or the lender offering the buyer with a substantial amount so he can buy off the house he wants to buy. At the end, the buyer pays the seller with the purchase price while paying the bank or lender with monthly loan payments plus whopping interest rates.
But if you go for seller financing, it is the seller who takes on the liability for financing the sale of their home. There are no banks or lenders involved in this procedure. Thus, the seller takes the responsibilities that banks or lenders usually handle. By doing so, the seller is able to give equal chances for those who can or can not qualify for a standardized type of loans. Usually, people with unstable income, not enough credit history and down payment are rejected by banks. But with seller financing, these circumstances are not a dilemma. The seller-financed promissory note possesses similar features with that of a normal home loan as it also specifies a down payment, interest payments, monthly payment terms as well as the necessary procedures to be taken once the buyer fails to make monthly payments.
So, that's why a lot of areas in Australia took advantage of the seller financing option. Meriton, known as Australia's largest apartment developers, preferred this option since the beginning. Its successful apartment buildings prove that seller financing has helped them achieve greater heights in the industry. Other areas such as North Sydney, Chatswood in Sydney, Newcastle and Blue Mountains were sold through vendor or seller financing. These are based on the records of Sydney's Land Titles Office.
Aside from Meriton and the other four areas, there are more people and developers out there who prefer seller or vendor financing than traditional bank loans. Developers have been taking on seller financing for rebuilding projects while people with less deposits have also taken on the seller or vendor financing options.
When you only have lesser deposits, insufficient credit history, or any other reasons which may hinder you to qualify with bank loans, seller or vendor financing can work for you. It's time to purchase the house you want and start a new life with your family through seller or vendor financing.
Author Resource:
Did you know you can buy property without a bank? See PROOF RickOtton.com
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