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Report warns of “dangerous” black market housing schemes

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Miklos Bolza | 10 Oct 2016, 07:00 AM Agree 0
Vendor finance and rent-to-buy schemes are preying on vulnerable Australians locked out of the mortgage market
  • Cubeman | 10 Oct 2016, 10:12 AM Agree 0
    I am a broker and have had a few clients with these over the years. The ones that have done well have purchased under rent to buy (typically the only way that they can potentially enter the market) and then the property goes up in value, they can refinance to a more traditional lender and payout the rent to buy portion.
    Where people can really lose out is when the property is at the same value after X amount of years and they are stuck in the rent to buy, typically until the property goes up in value.
    Like most things, they can be a good idea, but it's a matter of ensuring that you are getting the right advice for your circumstances.
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