This one is interesting…

As a vendor, I wouldnt accept a $1.00 deposit on a contract, and if I had more than one contract to decide on (several offers on the property) I would disregard the one with a $1.00 deposit and consider a purchaser who is being serious. If you cant come up with $1000, or even $500 as a deposit then dont bother. Keep saving. Go down the shop and buy a bag of lollies

I would prefer someone offered no deposit (or their left shoe) than 1 buck, its cheeky and could be considered as offensive.

Are you investing professionally or are you just trying to embarrass yourself? [gossip]

Dev [kid]

I dont think there is any way to avoid it. The builder is running a business, after all and will require progress payments based on the work completed. I am not sure of how many progress payments are ‘standard’ but I am sure that these would be common IMHO:

-Initial deposit to commence work
-Progress payment when walls go up
-Progress payment when roof goes on
-Progress payment at lockup stage
-Final payment on completion of works

Anyone like to help here?

Dev [cap]

patriciaburt

I agree with your thinking, there may be good returns but as a 24 year old property investor with 3 properties I wouldnt want to be renting (a house, a room or a bed for that matter) to some of the people I grew up with or know now who are in my age group! Selection of tenants is very important anyway, but student accommodation could be risky! (they may not sign leases and stick to them, high turnover = higher management)

In saying that I know some people who have 4 or 5 bedroom houses they rent to Japanese students, who are very reliable tenants. They rent the rooms out instead of the whole house.

Im currently renting myself (helps buy more properties) and live in a 5 bedroom house in South Yarra, I am renting 4 rooms out and am paying only $30 a week to live in this awesome suburb! Depends how you work the figures out and what risk level youre comfortable with but it could be a good move, its easy for me to manage this cause I live IN the house so I see my tenants every day

Dev [cap]

Sounds like fun, but even if it does affect the valuation this time around, next time you need to refinance you may not be able to borrow as much because of the higher valuation.

If it is a new property you are buying, the banks will only lend on contract value anyway so there is not much point doing this. [blush2]

As I said though, it could be fun but may not be of much benefit to you. I certainly wouldnt be paying ANY money for it, they have just made your task a little easier but really most people with a computer can be creative these days and make a ‘resume’ look good. [biggrin]

If you do buy it and try this let us know how you go with it, interesting concept.

Dev [cap]

maybe you need to repeat the scenario using ‘widgets’

hehe [biggrin]

makes sense… as long as you can SERVICE the loan/s… [cap]

Im a Tassie fan, in particular the west coast. [biggrin]