Hi,
I have an investment property and want to use the equity in it to buy a property in future. I have done this for a house up for sale, but not for a house up for auction.
Is it essential to have a cash deposit saved up to buy a house up for auction? Or is equity in an investment property I own enough to do this?
Hi Mat,
Is it essential to have a cash deposit saved up to buy a house up for auction? Or is equity in an investment property I own enough to do this?
No need to have a cash deposit, as equity in a property will do – but the auction rules might state 10% deposit. Call the RE agent ahead of the auction, as even these rules are negotiable.
It is a good idea to have your finance “pre-approved” with your lender as, with an auction, there is no cooling-off period. If the hammer falls and you are the buyer, then you would lose substantially if unable to complete the deal. By the way, I am not an accredited adviser – Some who are may well follow on with more useful information, so do listen to them if their words disagree with mine. :(
Good luck with your auction foray(s),
BennyThanks for the reply Benny, I know it’s a pretty basic question so I appreciate your input :)
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