All Topics / Help Needed! / Deposits?

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  • Profile photo of GoogzzGoogzz
    Participant
    @treloarasaurus
    Join Date: 2005
    Post Count: 3

    Hey Guys

    I am starting the process of looking for my 1st property. I am going to live in it for 6 months to take advantage of the FHOG and stamp duty discount.

    I would like to use as little of my own cash as possible as i would rather put it elsewhere for the time being. I have alot tied up in the stockmarket.

    From the agents i have spoken to so far all i keep hearing is that when i exchange i must hand over either a 5% or 10% deposit. Now i know that on settlement date i have to come up with the difference between what the bank will give me and the purchase, thats obvious, but, is it a rule that i have to hand over 5% in the meantime or is it just a preference?

    I remember Steve mentioned in his books that he stuck to $1000 deposits, has anything changed since then?

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    It is very negotiable and $1 is legally enough.

    But, the Agents and Solicitors need to recover fees if the sale doesn’t go through. 10% easily covers this and you will find most agents and solicitors advising their clients to only accept the full 10%.

    Simon Macks
    Residential and Commercial Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of MITMIT
    Participant
    @millionaire-in-training
    Join Date: 2004
    Post Count: 154

    I agree with SImon
    Use your negotiating skills to reduce the initial deposit if possible and / or go for a longer settlement
    Sue

    MIT | Owen Real Estate
    Email Me

Viewing 3 posts - 1 through 3 (of 3 total)

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