Vendor Finance

Vendor Term Agreement Vendor terms have been around as long as selling land. It is a way were a win win situation for both buyer and seller can occur. The Vendor gets a sale, and the Purchaser is able to purchase a property with out the fear of losing the deposit and the property, if they are unable to come up with the balance of the money in 30 days which is usually the case. In actual fact the Vendor is lending the money to the Purchaser, with condition the purchaser pays the Vendor the balance owing over a period of time. Securing A Property With as little as 1% of the purchase price, you can secure a property with A J MACLEOD PROPERTY DEVELOPMENT. The property of your choice would be taken off the market, and a purchase agreement created detailing the conditions of sale.

Deposit

With as little as 10% of the purchase price you can have possession of your property. In some cases A J MACLEOD has allowed purchasers to build up their deposit over a period of time, then given possession once the 10% has been reached. This can occur when a subdivision has been approved and titles are not yet registered, [Buying off the plan] or when there are several properties to market, first in purchaser’s are able to take advantage of this build up deposit.

Interest Free Period

In a lot of cases A J MACLEOD has offered a interest free period sometimes up to 12 months interest free. This has given the Purchaser’s huge savings, as well as time to arrange their own finance either from their own funds or from others.

Interest

Interest is paid after the interest free period, at present 1% of the monthly outstanding balance. This is a fixed rate, and if interest rates are lifted by the reserve bank, it dos not effect the purchaser.

Balance

Depending on the property, the Vendor term agreement can be over a period for several years, with only the minimum payments required, usually calculated at 1% of the outstanding balance paid monthly. This gives the purchaser time, to either improve the property and add value or time to sell there existing assets to settle on the property.