Hi everyone
Just wondering- if I have to pay a 5% deposit upon exchange, does this usually have to be a bank cheque? Or these days can it often be done by electronic funds transfer (internet banking) / personal cheque or other methods? the amount will be slightly over 11k.
We are moving to exchange quickly on a property in NSW so just trying to get everything organised asap so nothing holds up the process.
thanks
Hi dammit, today i just paid my 10% through internet banking. no probs.
lostie
great, that seems to make a lot of sense. i must check with the bank they have no daily limit on outgoing transfers – be good if i can avoid the time and cost ($20 fee) in having to get a bank cheque,,
thnx for ur reply
You may be able to get the seller to accept a Deposit Guarantee for a small outlay then you do not have to come up with the cash. Eg for 10k deposit it would cost around the $120 for upto six months guarantee
or you could just remember for next time that 5% or 10% is quite unnessesary. I just bought a 300k property with $750 deposit.
agents will try to con you into making a bigger deposit, because they want their commission secured. The vendor however doesnt care how much deposit you pay as long as you pay enough to cover the cooling off fee, because they dont have access to the deposit anyway. besides that, nobody in their right mind would ever use the cooling off period, better to use the finance clause, its free.
crashy wrote:or you could just remember for next time that 5% or 10% is quite unnessesary. I just bought a 300k property with $750 deposit.I agree – we just bought a $270k property with a $100 deposit. Keep of much of your $ as you can – for as long as you can….
Cheers
Stella
yeah i know what u mean, real estate said 5% or 10% deposit. 'thats the way we do it'. so just had to deal with it.
i couldve stood my ground and negotiated a lower deposit but given there was a lot of buyers we had to make our offer as attractive as possible.
thanks everyone
hello to all,
can some one please explain how the low deposit works? ($100 or $750) this may sound like a stupid question to you but i am new at this and have paid a 10% deposit. i would like to be able to keep my money for longer if i can.
Jason
Jason
A deposit is put up to show the seller that you are genuine and are prepared to loose some or all of your deposit if you do not follow through with the purchase. Deposits can be up to 10% of the purchase price but in thery thay can be as low as 1 dollar (not normal) but it shows that you have something to loose by not following through. Standard contracts allow for a default fee if you are unable to follow through (I think it is .25 of 1%) but as far as I am aware these are rarley charged. I routinley offer $1000 deposit on purchases of any value and have had no issues.
Don
Yes you can buy a property with $100, in hard times vendors may accept it (what have they got to lose?) But in a strong market I would be wary offering a $100 deposit on a property I really wanted, most vendors would reject your offer in favour of an offer with a larger deposit that they considered to be a serious offer by a genuine buyer likely to proceed with the sale.
Note: default fees do not nessecarily occur in all states.
Also, some agents will accept electronic funds transfer (internet banking) but others will not.
Skip101 wrote:Yes you can buy a property with $100, in hard times vendors may accept it (what have they got to lose?) But in a strong market I would be wary offering a $100 deposit on a property I really wanted, most vendors would reject your offer in favour of an offer with a larger deposit that they considered to be a serious offer by a genuine buyer likely to proceed with the sale.We thought that too – it was the agent who suggested $100 deposit. Maybe we looked like we didn't have more & he assumed we were borrowing pretty much all of the purchase price??
I was ready to write a chq for $1000 but wasn't going to put up more if not neccessary straight up. Our sweetener was a 30 day contract so one may have offset the other?
In my previous purchases I has always negotiated a deposit & never had a contract knocked back yet (except for one we pulled out of).Cheers
Stella
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