Forum Replies Created
Hi Bjoern,
Or are there other/better ways to use credit cards?
There was a book out about 15 years ago that talked of some interesting ways of using a credit card. Back then there was no Offset Accounts, but there was some kind of loan that worked in a similar way. I will talk of using an Offset Account as it makes more sense today.
The premise was that, since interest is calculated DAILY but added monthly, with CAREFUL use of a credit card, the homebuyer could do some serious damage to a mortgage. In our case, put some serious extra cash into an Offset Account.
The skeleton of the plan was to put EVERYTHING into the Offset Account as it arrives – this includes salary, lotto winnings(?), a birthday gift of cash, a Tax Return cheque, etc.
1. Shop weekly and all purchases go on the credit card.
2. If you eat out with friends and cash is pooled on the table, collect the cash and pay from your credit card, but Deposit the cash into your Offset Account next day.
3. If your Mum has saved up for a new Lounge suite, and is about to pay cash, offer to pay it on your credit card and take the cash and… (you guessed it) pop it into the Offset.
4. Think of other ways you can take cash in return for using your card – e.g. maybe shop with Mum and Dad, pay for THEIR shopping on your card, and take their cash.It sounds a bit strange, but if your parents know they are helping you by doing this, wouldn’t they want to? In fact, maybe THEY would like to contribute some savings of their own – offer them a BETTER Interest Rate than what they are getting in their savings account.
The MAIN thing is that your credit card is PAID IN FULL on the due date (no slip-ups mind…) from the Offset account. In that way, you pay no interest. Don’t draw cash from that credit card though – pay everything on the card – if you need cash, draw it from the Offset.
So what do the savings look like? Let’s say you earn $5000 a month after Tax. And maybe you need $4000 a month to live (food, petrol, clothing, mortgage, etc). You need a spreadsheet to work it out, but you might have a few days with $5000 in your Offset before you need to take some out. If your Mortgage Interest Rate is 5%, then $5000 earns you about $20 a month.
OK, not big news right off – but over time, as your Offset Account grows (by at least $1000 a month – and, did Mum buy a new Lounge Suite, or did she offer to drop $20k in your account?) you could find yourself with $20k or $50k in the Offset. The more that stays in the account DAILY, the better off you are. And with $20k in there full time, that is around $1000 a year.
And now, though it shouldn’t make any difference, (because you ALWAYS pay off the credit card as it falls due, so no Interest is paid) WHAT now can you do with another 0% credit card? Will it allow you to keep your IP expenses separate from your daily living expenses? Can RENT be added to an Offset account but all bills for the IP paid from the credit card? What will THAT allow you to save? Given that rent is paid weekly, but Rates are paid quarterly, there is a serious amount that accumulates before you need to pay Rates. So all good…..
Bjoern, I’m sorry I can’t think of the actual name of the book, and I don’t even know if it is still available to purchase. The name was something like “How to pay off your home loan earlier” (or similar to that). Hope that helps…..
Benny
Hi B2,
I was glad I was able to provide a few thoughts that might work for you.
Now that I know this was a new built house, could it be that this place is in the right location to be desirable as a Corporate rental? I don’t know how many companies move staff into Emerald, but corporate rentals usually want :-
1. Properties in a central location, or near their place of business.
2. Properties need to be well appointed furniture-wise
3. Properties need to be top quality in all aspectsConsider a mine or a company sending a trouble-shooter to Emerald for 6 months to sort out a problem. Or, they might provide accommodation for whomever of their managers goes up there next – one moves out, another moves in. In an ideal situation, the company might take out a lease at a VERY GOOD rental for years at a time.
When moving in these circles though, there can be quite a bit of competition between the landlords, so you would need to know you have a deal before setting it up and spending heaps to “make ready” for whomever it is that wants your place, and perhaps they might even dictate just what fittings they want you to provide.
Why not, if they are locked in on a long-term lease? Give ’em what they want, and you put your price on the rental to cover their requirements, plus ……
Good luck,
BennyJust one more to have a think about.
Hi B2luck,
Your post today indirectly led me to have a read about those regional areas that have mining as one of their local businesses. I must say it was interesting to read the comments by many who seemed to have in-depth knowledge of those areas in regional Queensland. Your post that led me to the mining thread was this one :-
https://www.propertyinvesting.com/topic/4404256-qld-mining-regions-bowen-surat-basins-gladstone-willing-to-help-anyone-with-questions/page/8/#post-4652133Now today, you say this:-
We bought a new house as an investment property in emerald Qld, in 2011. The property price has dropped approx 100k . We have it rented out for 300 per week. By the end of 2017 we will be paying the principle on the mortgage also, which is when we might feel a financial squeeze.
Going by comments in that thread from “Josh”, he believes that Emerald is far more than just another mining town, and that he believes it to be a major service centre for many surrounding mines and mining towns. He also believes that the long term for Emerald will be solid when considering it as a 10 year investment and not a short-term one.
From my end, I can add nothing re Emerald itself – but re your “Do I sell, or do I not?” question, my thoughts would be to consider a few points:-
1. Can you afford to sell today, and thus “lock in” a Capital Loss – assuming that there is a loss of $100k if you were to sell, and don’t forget to add in the costs of sale.
2. If you were to sell, do you have another plan for the extra $$ that are currently supporting a negative-geared investment?
3. Do you agree (with Josh) that Emerald will be profit-making when considering a longer-term investment – e.g. ten years?
4. Can you afford to hold it if you agree with 3. ?Going on from 4, if you wanted to hold, then can you cut costs and/or lift income?
Do you envisage being able to raise rents up from $300 in any way? e.g. can you renovate to command a higher price? Or, if currently unfurnished, can you pull a better rent by making it furnished? Is there a better (lower) vacancy rate for furnished properties? Is there a possibility of adding a granny flat in that area? If so, can you add one cheaply (e.g. move a second-hand mobile home onto the site for $50k and rent it for an extra $200 a week – a 20% return!!).On the “small fish are sweet” side of things – can you add split-cycle air-conditioning and add $20/week to the rent? Or add a carport and put $10 a week onto the rent? In short, what does your tenant want/need that they will pay a bit more to get? Make sure that the rent increase more than covers either the cash cost in one year, or borrow extra to cover the cost of the upgrade and pay just 5% interest, leaving the extra cash-in-hand to help you hold on.
Or can you cut costs by renegotiating the mortgage term or changing lenders? Go from a Standard rate loan to a Basic Rate? Can you look to continuing with an IO loan after the loan goes off IO and onto P&I? Again, though I know this CAN be done in my area, I don’t know how lenders view Emerald, so you would need the expertise of a finance person (MB?) who is familiar with Emerald. Of course, any change to a mortgage will likely include a cost (application fee etc) so do be sure that the gain is worth the cost.
Other than that, I hope others with more local knowledge of Emerald can help further,
Benny
Hi Kevin,
The Investment Detective link has been corrected. Admin has also made changes that point any broken links to the “store” instead of coming up with a bad link. This helps, as it guides new readers to “What is available now” – hopefully some newer products might have taken the place of those older ones.Tammy (@mstamus) found one of the resources you were looking for (Focusboard) in here:-
http://www.propertyinvesting.com/book3
As Admin reminded me, even though some of these resources still exist, they should be taken at face value as they were created for a website that no longer exists. There may still be some value in them, but are not part of any current education module.
Also, some of these old references might direct you further down a path that no longer exists – so take what you can from them, but remember they are no longer supported. Indeed, at some point, they might cease to exist.
Benny
Hi Storeybuilder,
Thanks for the replies, but I fear this has become quite confusing to everyone.
Part of the confusion arose because one poster had addressed you, when they should have addressed Lisabellan. I have corrected that now – hopefully, that will remove some of the confusion.
In YOUR case, SB, as several have said, you CAN have several loans to “make up” the amount required. Sometimes, one might need 3 or 4 loans – much depends on how much Equity each property has. Do keep in mind that there can be LOWER limits to mortgages too.
e.g. If one IP only has $10k Equity, I suspect you may have trouble getting access to it – but then, those other guys (Jamie, Terry, and Richard) can give you chapter and verse on all this. Check with them. This doesn’t seem to apply to you at the moment though – but perhaps one to “file and forget” for now?
Benny
Hi Mike,
Re this :-I’m looking at an Interest only loan and a 90% LVR. Is this a wise decision with rates likely to rise in the next couple of years or worth going for a 20 deposit or 80% LVR.
Borrowing the maximum you can borrow allows you the maximum flexibility. A smart move would be to set up an Offset account against the Mortgage account – into this, you can CHOOSE to add an amount per month that brings your SANF (Sleep At Night Factor) under control. e.g. you might choose to pay an amount of Interest as though you have a P&I loan at 80%. This might be an extra $400 a month (say) so you “pay” this extra into the Offset.
The act of adding funds to the Offset means that you owe LESS Interest as your funds accumulate in the OFFSET account. Since it is all your own cash, it can be removed from the Offset at any time, and for any purpose.
That purpose could be –
1. To actually PAY DOWN the mortgage you still have on the IP (not what most would choose, but at least you can learn that this IS an option – and THAT can help with SANF too).
2. You might have found another “deal of the century” and you need to lock it up with a Deposit paid immediately.
3. You can take a world trip if you wish.Go here :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697973
….. to read a heap more about Offset accounts – learning of these is well worth your time !! ;)Benny
PS One other option might be to Fix the Rates now. With talk that Interest Rates may be about to drop further, this may work against you, but then you can be CERTAIN that the payments WON’T rise in the next x years.
The WORST time to fix is after they have already risen, and we panic and fix just so our payments can’t rise EVEN MORE. That is a super-bad time to fix, and this kind of action caught many in 2008 after KRudd was made PM, and famously quoted “The inflation genie is out of the bottle” – leading to the RBA increasing rates as the rest of the globe were madly CUTTING their rates. Our rates got to 9% thanks to KRudd – and some homebuyers then FIXED in case the Rates went even HIGHER. They didn’t (and shouldn’t have gone up at all) and these folk were left with Rates fixed at 9% while the rest of us got to see around 5% by year’s end.
So, don’t be in a rush to fix – but, if you wanted to, now is not such a bad time……
Hi Bella,
Add “Depreciator” into the mix too. Last I heard, their schedules cost $550, but that was a few years back so do check their current pricing. I have used them and was delighted several times. I also see other investors I know adding their kudos too, so my recommendation is not alone….Benny
Hi Brizza,
There is not enough info posted to come up with an accurate answer, but consider these points :-If looking to purchase another IP(s) then you need from 15% to 25% of the value as Deposit and Costs. The remaining 75% – 85% will be the mortgage on the new IP.
So, your question needs answers to two things –
1. How much ready cash or equity do you have (for the Deposit/Costs)? and
2. How much spare income do you have to cover the ongoing costs (e.g. mortgage interest, rates, etc and does the rent cover all of these costs or not?)With a healthy wage, number 2 is probably OK for borrowing a large amount (depending on any other loans outstanding – PPOR, car, personal loans, credit cards, etc). So if you have very few other loans, then the amount the banks will lend will be quite high. Of course, different lenders will allow different amounts based on their “rules”.
Therefore number 2 is not likely to be limiting you – yet.
Now, with the Deposit/Costs, the upfront amount available will vary depending on the ACTUAL numbers.
Lets take a guess at the current IP value – say it is $240k. With an 80% loan (no LMI) they will lend you $192k less the $150k owing, so $42k. Add to that the $20k in Cash, and you have $62k as the answer to 1. Costs on something around $300k will likely be $10k+ so allow only $50k as the 20% Deposit – which means you are buying something up to $250k.
Now, IF you are able to borrow nearer 90%, then you need far less in Deposit/Costs, so this will allow you to borrow much more than $250k. As you can see, the above is not simple to figure out, and you need to KNOW a lot of the actual figures involved.
I would suggest you get a more accurate valuation of your current IP (ask a RE agent for a market appraisal) then take that number, along with a bunch of personal numbers (your other loans) and talk to a Mortgage Broker.
There are several good ones on here – maybe there will be some of them responding to this post of yours. These are the people who can tell you how much you can borrow, with whom, and why, and they (usually) won’t charge you a cent as the lenders pay them for bringing business to the lender.
Benny
hi N2I,
If I sell, I can use the sales $$$ to pay down the mortgage on the new PPOR and start a family.
If I rent it out as an investment, it will be a positively geared property giving me about $900Since you have paid so much off the old PPOR, it might be financially wiser to sell (with NO CGT to pay), and use the funds to pay down the new PPOR. THEN, if you wished, you could borrow against all the Equity in the new PPOR to purchase a new IP, with ALL funds borrowed thus being Tax Deductible.
Whatever you DO do, do set up an Offset Account (which would have made making your old PPOR into an IP much more easily workable). To read more about Offsets, check here:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697973And do keep in mind – as well as financial reasons to do anything, there are those emotional reasons too (like “starting a family” and this is every bit as valid and important as investing!!).
Good luck with the choices,
Benny
Hi Lisa,
Some seriously good learnings there – re keeping a buffer rather than spending it.But, guess what, I have a couple of comments that might sound like I am advocating the spending of more money… at what could be a bad time. I did want to share the thoughts though – as you say, sharing the bad and the good can help to round out the whole picture.
From your post above, these bits stood out to me :-
1. “two of which are furnished as short term accommodation and do well as we have the Navy on our doorstep as well as others who fly in to do business here.”
Benny>>>> If they are doing well, why would you not furnish a third one, and even a fourth? (Use a no-deposit, no interest credit card to get them on their feet and bringing in more cash…)2. “On speaking with my agent yesterday we decided to also sell one of the furnished units”
Benny>>>> If they are doing well, why would you sell one?Of course, YOU know your situation in acute detail, so my thoughts are simply meant as a prompter to perhaps have you re-look at that particular area from a fresh perspective. Could 1. work? Or are you stuck with 2.?
Benny
Hi Tiger,
Congrats !! I hope your new PPOR has an Offset Account attached to one of its mortgages :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697973Sorry to hear you weren’t aware of them earlier – it would have eased the path from PPOR to IP remarkably, leaving the full mortgage set up against the new IP. Your money in the Offset account gets used to pay Deposit/Costs for your new PPOR. I’m sure you will set one up against the current PPOR (in case it becomes an IP later too).
As to “What to do now?” this really depends on where you are at financially, and where you are heading?
See, if you were wanting to invest some more, any borrowings for investment (another IP, shares, etc) can be Tax deductible – so, if your goals say “Buy another IP”, then borrow against the new IP (your old PPOR) and claim the Mortgage Interest in the usual way.
In times of uncertainty, having a bit of extra cash is no bad thing though – so being positive geared for a bit sounds like good news to me. Still, if another investment will lead to extra Growth at the expense of a bit of cash now, then that can work too. Good luck with your next move,
Benny
Hi Lisa,
I took a look at the advert, and had an immediate couple of queries/comments:-A home ideal for one or 2, even a beach house for the family
If I were looking for a family home, I would be put off by a comment that says “Ideal for 1 or 2” – sounds like a 1 bedder to me.
And then, further down, it almost seems like a linen cupboard is more important than the 3 bedrooms.
I guess the other syntax errors don’t help either …… “strolling distance the the heart of Rockingham” and “cafes and the the essentials” but these two really are minor, and are not the same concern as “ideal for 1 or 2” might be.
Suggest the RE agent do a rethink and a reword,
Benny
Hi Dean,
Applause for the clever acronym:-
at the same time TINA (There Is No Alternative) is forcing me to purchase yet another IP
Benny
I tend to agree with what Terryw said :-
How much would it cost you if they moved out and is it worth considering paying $400 to prevent this?
But first, do clarify for us if the current tenants are “recent additions”, or whether they have been with you for some time.
See, if they are recent, it may be that you might choose to not renew their lease if their requests continue to become silly (TV cuts out when a light is turned on…. REALLY????). Have you seen this? Could it be that the complaint is poorly worded – it may mean that the light being on overpowers a faint picture that really is just a TV issue (not the aerial at all).
Who owns the TV? You, or them? Now and then, a landlord needs to make a judgment call – and swallowing a $400 bill to keep a good tenant happy can be one of those. But don’t be fixing THEIR equipment for them (e.g. if the TV is theirs, and IT is the problem).
But then, you might offer to provide a TV and add $10 a week to the rent… if it makes sense to do so.
Good luck,
Benny
Hi Matt,
Welcome to propertyinvesting.com :) I don’t know which of “these guys” you are referring to, but let me just ask what a Life Membership provides you with? i.e. What does your money buy for you?See, many of the kinds of companies who ask for $$ like this are wanting to continue “giving you a fish” instead of “teaching you to fish”. Those coming up with “the next property to buy” are like providing your next meal. But if you learn how to fish, you can feed yourself for a lifetime.
Why not spend your money in learning HOW so you can source your own deals (likely WAY BETTER than what they sell) and chart your own path to wealth? Go visit the Store to see what is on offer. You can start with a book bundle, to get an idea if Steve’s “way” makes sense to you. Then, if it does, check out the Property Apprentice option and call on Jason to discuss whether “it is for you”.
Here, we have no properties to sell, thus no conflicts of interest. Here you can purchase education (or soak up a lot of good stuff for free right here on the forum) to seriously fast-track your journey.
Check out the following article showing what other members thought of the Property Apprentice course squeezed into a heavy-duty FIVE DAYS (called Boot Camp):-
https://www.propertyinvesting.com/steve-mcknights-intensive-boot-camp-2016/And THAT can be for you too, if you seriously want to know HOW to do this for yourself and not be beholden to others who might line you up with properties they then sell to you and make money from the developer in doing so.
MOST new properties are NOT ideal for investing, so why are they promoting these to you? There are plenty of learnings on the forum about this – learn what is BEST for YOU right here. ;)
Benny
Hi Nan,
When Kevin Rudd was PM, I had heard of people “fixing” at 9% after rates had screamed up (erroneously while the rest of the world were madly CUTTING their rates – this was the GFC timeframe). Many of them regretted the move as Interest rates then fell to their LOWEST rates since the 60’s in less than a year from when they hit 9%. Some had fixed for FIVE YEARS and were “overpaying” until 2013.
Right now though, I can understand someone considering “Fixing” their loans. The rates are WAY lower today, and, though they might drop more, there are very few who CAN’T pay their mortgages at these rates. If it gives you peace of mind that they won’t go up again during the Fixed Rate period, why NOT lock them in??
Well, that latter is a very good question. Here are a few thoughts re “Why not fixed?”
1. Once you fix them, if your situation changes, you might be in a world of pain if you need to “unfix” them.
2. If you plan to sell a house at all in (say) the next five years, be very wary of “fixing” its rates for the full five years as you may need to sell sooner than you expected.
3. There might be a need (suddenly) to re-appraise ALL of your portfolio, and even re-finance some/all.
4. Apart from cost, once the rates are fixed the other thing lost is flexibility.The problem comes when you need to BREAK a fixed loan term (e.g. you set the term at 5 years, but after 2 years you find you must “break the fixed term contract”). The cost to break can be HORRENDOUS !!
Note that a Bank will allow you to change a Variable Loan to Fixed at minimal cost – but, try to go from Fixed to Variable? “Now, just wait a minute while we tot up the bill!”
You might need another mortgage to PAY the Break Cost.
Nan, I would suggest you consider fixing ONLY if you are very secure in your employment (or continuation of the Income that you receive now, wherever it is from), AND confident that you will have no need to sell or refinance this loan for the total contracted period.
If you have any doubts at all, don’t !! And, of course, DO talk with your finance person in depth BEFORE doing it. I’m sure I have only scratched the surface, and there is much more to learn/consider re these.
Benny
Hi Siewlin,
As Corey said, having both loans with the same lender doesn’t HAVE to be a problem, but you need to be more sure of several things that COULD become an issue.
First, if you were to run into trouble, and, having paid little off the IP and lots off your PPOR (your home), this means there is lots of equity available in your PPOR, and not much in the IP. So, what would stop the bank taking your home to pay off the debt, leaving you with the IP? Food for thought….
Another (related to above) possible issue is the situation know as x-coll (cross collateralisation). Have a read here to get a good idea of what x-coll is, and how it can be a pain to you:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697974Note that the above two possible concerns can not take place if you have borrowed with separate lenders.
Like Corey, I too would suggest getting to know a good Mortgage Broker. Corey is one of several on this board – check people’s signatures to see their professions. A MB will have access to SEVERAL lenders, and have a great working knowledge of “which lender first”, “which lender is best for certain situations”, “which lender has the most relaxed lending parameters”, etc. etc. Their worth is almost immeasurable – and they are paid by the lender, not by you – go find one to work with you, and gain a super important member of your team.
Benny
Hi Nigel,
If the political parties are serious about helping first home buyers perhaps they could allow negative gearing say for the first 5 or 10 years. That way the interest at least would be tax deductible.
Hmm, that could make sense !! And might be far less damaging than turning the neg gearing applecart upside down. Of course, this INCREASES the cost to Govt that Labor were trying to cut.
And another thought struck me too – they talk of “negative gearing” as the big bad bogey !! But hey, have they considered that negative gearing is not the only way to save Tax !! e.g. anyone owning rentals, even if positive geared, are able to utilise the depreciation and other “non-cash” deductions to save on the Tax they pay. Like, if their property is positive geared by $50 a week, then they would be looking at paying Tax at their Marginal Rate on $2600 a year. But then, they CAN use the depreciation schedule to reduce those profits, thus paying less (or no) tax – just like negative gearers can….
So it is positive geared as well as negative geared investors who will lose out, thus markedly affecting the rental market.
Grand-fathering will save any EXISTING investors from harm, but a change that affets BOTH negative and positive geared investing will have far bigger consequences than Labor have considered. Labor had better take a cold shower and think again.
C’mon the Coalition !! ;)
BennyHi Nigel,
Can someone explain how only having negative gearing on new properties lowers house prices.
I’ll be in your “stupid class” too, ‘cos I can’t see it lowering house prices either – on the contrary. This is what I see:-
1. Investors are not the ones that “push prices up” anyway – home buyers are the ones who will pay more to get “the one they want” and they can sit on it for many years and grow their equity. Investors want discounts!!
2. If Labor is elected, there will be a short-term RUSH by investors to buy up ahead of July 2017. Now that scenario COULD lead to investors paying “above the money” to be able to fill up on properties that will have the negative gearing “grand-fathered” and help their balance sheets. This could leave home buyers further out in the cold for 12 months.
3. I assume that some investors DO use negative gearing – often as a portfolio mix of positive and negative, giving them sufficient positive Income to cover the costs of holding their negatively geared Growth giants.
4. Investors may well be more reluctant to sell their “grandfathered assets”, knowing that once sold, any subsequent purchase will be WITHOUT the negative gearing benefits (unless new). This puts a floor under the properties available for rental, but the ceiling might then stay awfully low, meaning no or little growth in “numbers of rentals available” – thus higher rents.
5. Taking away negative gearing benefits will likely delay new investors getting INTO the IP market, thus helping to exacerbate the rental shortage. It will also slow down existing investors who build their wealth by buying second hand and renovating.
6. With less Govt. financial assistance, the whole scenario is open to huge changes (maybe in FAR more ways that I have been able to dream up in just 10 minutes).
7. As always, Government intervention without across-the-board debate all around a subject is fraught with danger (think back to Kevin Rudd’s infamous “kitchen cabinet” – what a bunch of disasters those four dreamt up for us, and we are still paying…..)
Back to you, Nigel:-
Now if you only negatively gear new homes you end up with investors mainly buying house and land packages in outer areas of our major cities, would this not increase demand of these homes and infact push the prices up.
Hmm, I am not so sure – certainly, the outer suburbs do have a cheaper cost, but with precious little land, likely little Growth either. As an Income property, these might still work – but hey, buying new from a developer will mean there won’t be too many “bargains” unless the bottom falls right out of the market. No bargains means less investors….. but then, what are they doing? All in shares???? Or art? Gold?
I fall back on my note #6 !!!
Guess I will just pray for a Coalition win !!! ;) The alternative would be way too ugly,
Benny
Hi thefox,
Hmm, bad news – sorry to hear that. I don’t know the Canberra market, but I would think you don’t HAVE to buy at auction do you? It is far easier and less emotive to go to a Real Estate agent and write up a contract.
I’m from Brisbane and most of our sales are done through private treaty (i.e. via a contract, not an auction). It would probably be much like how things were done in the UK, but of course, I am guessing….
Auctions can be scarey from many levels – e.g. did you know that you could be in serious trouble if you weren’t able to get finance after winning the final bid? See, by private treaty, you can take things slow and careful, add clauses that protect YOU (like “subject to finance being available suitable to purchaser”, and “subject to satisfactory building inspection”).
At auction, these are not part of the game, though I think you can arrange some things AHEAD of the auction. e.g. It is common for a 10% deposit to be made by the winning bidder as they go to contract (but this can be arranged to be different if done AHEAD of the auction).
In short, it is what you don’t know that can cause problems, so do school up on the whole auction process if you want to continue with them. Or, stick to private treaty, and check each step with your solicitor before you take it.
Good luck, and welcome to pi.com :)
Benny
