Hello!
Still trying to find a way out of current cash deposit issue for purchase of PPOR:
We are renting (and landlords need us out at end of lease) and our PPOR (in another town) is currently on the market and tenanted.
Basically we want to avoid another move to another rental place. We certainly will be buying – income is good – and servicing a higher home loan is not a problem…it is just getting into a new home without a deposit/before 1st property is sold.
Now it is time to get creative.
Someone suggested to us the following scenario;
To make an offer on a property and ask for a long settlement – no more than 6 months (time for our house to sell and be settled on) offering a small deposit (less than 10%) secured through a personal loan and offer to rent the property from the vendor at the going rate up until settlement.
Is such an idea so far out?
Our favourite property currently on the market went to auction, got passed in. The high bidders bought another property the following week. The price has now been dropped. Seems the vendors have placed a couple of properties on the market and are currently building. Seems that if this one does not sell in the next few weeks, they will move into it themselves while building takes place and put it back on the market later.
Please help?
Bx
Idea is not so far out at all but i think the number of Vendors willing to take such a deal will be limited.
Many of the Vendors will have a mortgage on their home and will be a matter of them having to take on 2 mortgages until you eventual settle.
Alternative would be to take an 80% LVR and 20% Vendor finance loan which maybe more attractive to them.
Anyway good luck and let us all know how you go.
Richard Taylor | Australia's leading private lender
Actually, we have found another property that would fit the bill, and explained a bit of the situation to the agent who said a possible rental/long settlement is very much a possibility to the vendor depending on the offer made – it was their PPOR then an investment property and is currently vacant….they are selling up properties *allegedly* as older people wanting to direct funds to their children.
Only way we could go for this property now is to do the long settlement/rental thing. Otherwise we would go for a lower price temporary PPOR (future IP) in our next fave suburb and be able to borrow now at a level that would not involve LMI. Our preference is to be in that long term home now, with no more changes of address….
Richard, I have no clues as to how/where we'd start to arrange a partial vendor finance arrangement……arghhhh!
B x
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