Hi all. My family and I have lived in a rental property in a rural inland city for approx. 2 years, which is currently on the market for $209,000. As we are settled in for the long run, I would like to purchase the house however have no deposit to speak of at this time. My bank has offered a 95% loan upon such times as I can raise the deposit, however we are nervous about the prospect of the property being sold from under us! We are looking for an investor who would be interested in purchasing the house for us on Installment Sales terms or similar. I would envision buying out in 12 months or less.
What would you be looking to buy the property off the investor for so we can calculate the potential profit return.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As well as supplying the information requested by Richard, could you tell us if you have approached the seller/agent to see if s/he would 'carry back' the deposit for you?
To get such a conversation going, just say to the agent that you're happy to pay the asking price but you'd need a little time too sort your finances. So, could the agent ask the seller if they'd take most of the money now and some of the money a bit later?
If you get a positive response from the agent get back to us. At that point I'd probably suggest you try to get the seller to 'carry back' 20% to keep you out of Lenders Mortgage Insurance territory and have a reasonable chance of getting an 80% loan with non genuine savings.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Yes as Paul mentioned a 20% carry back makes life easier although at 5% there is still one lender / mortgage insurer that will allow non genuine savings at that lvr.
Course to cover any acquisition costs you might need to make it a 95% lend and a 10% carry back.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the advice re: "carry back" Paul – I will endeavor to follow that up with the sales agent and will repost my success.
Qlds007 – I would be willing to buy the property back from the investor at a decent enough markup to make it worthwhile – though there is a builder's inspection being done soon, so i will wait for the results of that before putting down a figure.
Thanks for the comments!
Fully understand.
Look forward to hearing from you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
