I forget who it was that originally suggested the following idea to me. An idea to try to defuse conflicts between individuals or different groups with opposing ideas. It went something like; ‘If both sides take immovable, opposing positions, nothing gets done. Instead it was suggested both groups. figuratively walk around the “Wall” and look at the issue from the other side’s point of view.’
Is It All The Government’s Fault?
Recently I saw a comment, yearning for the good old days before the government clamped down on our Vendor Finance Industry. It went:
“Yeah but that was when you could! Before government clamped down on the industry like it does anything innovative and new.”
A Quick Walk Around The “Wall”
I knew the introduction of all the new rules back in 2010 (the National Credit Code) had actually improved our bottom line because we are now putting better quality buyers into our properties. So I thought I’d take a quick walk around the “Wall”. As a result of looking at it from another point of view, I made the followings comments:
“Hi Xxxxxxx. That’s one way of looking at it J Another, is to recognise that the rules around Real Estate Licensing haven’t changed. It’s us that have changed. That is, for years since the Vendor Finance Industry re-emerged in the early naughties, we in the Industry were under the misapprehension we didn’t need Real Estate Licence coverage, if we had a joint venture with the Title holder. We now know we were wrong.
And I can understand why the authorities were unhappy to see our Industry re-emerge in the format it did. Before our Industry’s re-emergence we had a home lending system that, in general, gave home buyers 20 to 30 year loan terms. Loans where the loan balance came down to zero at the end of the term. Now they see Vendor Finance transactions with 3 to 5 year terms, with Vendor Finance buyers running into trouble all over the place. Running into trouble due to being unable to refinance into a traditional home loan when their short term Vendor Finance transactions expire.
Looking at it from their point of view gives a different perspective and possibly shines a light in the direction our Industry may like to head. Cheers.”
Have a Great Festive Season
The wonderful staff of Vendor Finance Management, Karen & I would like to wish you a brilliant festive season. Roll on new year! With what we’ve got planned it’s going to be an awesome year for vendor finance.