Vendor Financing

Discussion in 'Innovative Property Investment Techniques' started by Shawn, 20th Apr, 2017.

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  1. Cousinit

    Cousinit Well-Known Member

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    Victoria
    How common are VF arrangements ?

    I suspect they are more common than many people realise?
     
    Cousinit, 16th Jul, 2018
    #21
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Very rare for property. Fairly common for business.
     
    Terry_w, 16th Jul, 2018
    #22
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Definitely a need for careful legal + tax advice in each case. Have seen some well intentioned errors.

    eg a sale by instalment can have diffucult CGT, GST and income tax consequences. eg For sa sale of a business if the contracts ells the hard assets you can lose major GT concessions. CGT timing is based on the contract NOT when the $$$ are received and earnout arrangements (ie sale price tied to future measures eg sales) are a complexity.

    And legal advice on the vendor terms and bailout clauses are important.
     
    Paul@PAS, 20th Jul, 2018
    #23
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