hey everyone,
i have what seems like a great deal lined up! but i am still feeling unsure about it…im looking at buying a property with an estimated purchase price of $80,000 at auction – it is 2 large adjoining maisonettes
the entire building needs a paint inside and out, and a few other cosmetic things to be done, and also a fence to divide the yards, and probly aircon for both sides.the real estate agent faxed a letter to my bank manager today about the rental potential of the property, he states that once in a more livable condition (painted etc.) – they will then fetch at least $120 a week each ($240 in total p/w)
now this seems great, but i have a low income and they will only consider the lend if i put up a 15% deposit; in which case i wouldnt really have much left over for fixing the place up…. i would really like to get a loan for 90% or more of the value but im not sure how i will be able to do it – though a relative is happy to cosign for the loan.
now im also not sure on the condisions of the first home owners grant, such as: if i can get it if i plan to rent the placces out once i have fixed them up…
the other problem is that i dont have finance and the auction is on friday (28th Jan; 2 days!!!!)
so my only option (if i want the place) is to bid on the property, and put a deposit down; then work out finance in the settlement period. aparently the terms are not very flexible so im not sure that i would be able to extend the settlement period…
i plan to add ‘or nominee’ to the terms (if i win the auction) and try for access prior to settlement. then if worst came to worst and i couldnt afford finance i may be able to hand the deal to someone else who would make use of it…
what are peoples thoughts on all this?
please let me know if anyone can help me with:
-Finance
-First home owners grant info
-any other essential tips or informationCheers all.
Jake
Hi Jake,
Congrats on finding something many people believe no longer exists. Double check your rental estimates though, ask some other PMs and maybe ask for a rental history on the property.
And do a proper figures run including insurance, vacancies, rates, onging repairs, property management fees etc.
As to the First Home owner Grant, if you cannot prove the property is going to become your permanent place of residence (QLD minimum 6 months) then forget about accessing the grant for this one. Do a search on this site. there was a discussion somewhere that had the links to all the relevant state info on this.
As to the other questions you have I cannot help. Except to say, that perhaps you should check that the vendor will allow you to add that “and or nominee ” clause to the contract before going to the auction. I think vendors at auction have the ability to stipulate very strict terms and they might not allow the addition of that clause if you have not prearranged.
also I remember a little birdie telling me that you can be the winning bidder at an auction, but until you actually sign the paperwork, you are not obligated to follow through. might pay to double check on that one too with a solicitor, so you know exactly where you stand.
good luck
In at least one state if the purchaser fails to sign immediately after the auction the auctioneer can sign for the purchaser
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