Hello,
I have a question. My father purchased an investment around 2 years ago for 500K and has invested about 150K in rennovating it. It's now a 5 bedroom house and we believe will be valued at around 800-900K.
My father now wants to sell it to me for 650K,(as a sort of gift) but as I don't have a deposit or any equity on my current investment, he believes that the difference in the market value is enough to secure me a loan. Before I speak to a broker, I thought I'd check in here.
If, lets say the house is valued by the bank to be 850K, would the 200K difference be considered by the bank to be a deposit or enough to secure a loan?
G'Day Perseum,
Unfortunately no. The bank takes the less of either the valuation or the contract price which in this case is $650k. On the majority of times the valuation will come back the same as the contract price. If you are purchasing a property for $650k – you will require at least $60k by way of a deposit.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
You also need to come with your buy-in costs as well.
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