A Use Case of The Typical Vendor Finance Skeptic

Vendor’s property has been on the market for two and a half years. Vendor is offered a deposit of 25% of sale price. Vendor is offered repayment terms of 3 years (25% of the remainder per year). Vendor is offered an interest rate of 9% (current market rate is 5%). Vendor intends to invest the proceeds of the sale in cash at a rate of 5.19%. Vendor doesn’t like the sounds of vendor finance so doesn’t wish to proceed with the sale. Vendor continues to pay $456 in council rates each year. Vendor “just wants to sell the property already!”

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