Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jackjc who wrote (44914)	7/16/2007 2:52:18 AM
From: marcos	Respond to of 78408

What we call here 'agreement for sale' is likely the same as 'contract for deed', title resides with vendor until full price and all conveyancing is paid, purchaser enjoys possession, subject to conditions maybe ... works well, i bought two properties and sold one this way ... much less common now, there is more money around, credit is easier, vendors expect to be cashed out An old guy i knew built one of the first neighbourhood pubs in the province, operated it two or three years and then sold it twice under agreements for sale, got it back both times when payments stopped coming ... finally sold it in the eighties for all cash to him, but for much less, which sort of showed the net present value from the bankers' point of view Another fellow i worked with bought a house under agreement for sale around 1969, paid about the going rate for the house but the AFS was for thirty years at four per cent, below market even at the time by probably two per cent, but it was what was offered and he took it ... so he was paying about seventy loonies a month for this fairly nice house on a large lot, pleasant location too, and in the early eighties the estate rep of the vendors phoned him up, asked him would he pay some unbelievably low figure to cash it up and convey title, they wanted shut of it ... he said sure, quick before they changed their minds, this showed net present value of money at the time One day soon i won't want the leverage either, actually don't have much now ... i do think it a good idea for a younger person to make a careful purchase of a home using all the financing necessary, because you need a place to live and without it you'd pay rent forever and never really feel it to be home [subjective judgment there for sure] ... but you have to be able to make the payments, and judge well the relative values, and get the timing right, and this means probably not now in most areas