Forum Replies Created
Steve, glad to hear your trip went well.
What are your ideas on picking up real estate when the interest rates rise and people have overextended themselves? Do people usually sell before they get to the “repossession” stage?
Thanks
Li-Sa
Just afew thoughts Dianne,
If the rental return is true to what they speculate, why do they need to have a “rental guarantee”?
Something that has always stuck in my mind from Steve and Dave is, with cashflow, it’s the person who is the asset, not the bricks and sticks.
See what the deal is like if you factor in the maintenance, rates, stamp duty, etc and see if it still fits into a positive cashflow scenario. As they say, the numbers don’t lie.
Regards,
Li-Sa
Hi Andrew, there are afew conditions prior to completion of the contract.
“Conditional payment prior to completion
1. The Commissioner will exercise his discretion under s.19(2) to pay the grant to purchasers under
instalment contracts prior to completion of the contract if all of the following circumstances exist.
(a) The contract has been on foot for at least one (1) year.
(b) The purchaser is not in default under the contract which would entitle the vendor to cancel the
contract.
(c) The purchaser has occupied the home as their principal place of residence under the contract.
(d) The purchaser has paid to the vendor an amount of not less than $7,000 or an amount which
is equal to at least ten per cent (10%) of the purchase price, whichever is the greater.
In calculating the amount paid to the vendor, any of the following can be taken into account:
(i) any deposit paid by the purchaser to the vendor;
(ii) any interest paid by the purchaser to the vendor; and
(iii) any other amounts which have been paid and deducted from the balance of the
purchase price.
Conditions of payment
2. A grant paid prior to completion of an instalment contract will be paid subject to the following
conditions.
(a) That the contract will be completed and will not be cancelled or terminated.
(b) That, following payment of the grant, the purchaser will remain in possession of the property
as their principal place of residence and will continue in possession following completion of the
contract to satisfy the residence condition of the grant.
(c) That, within fourteen (14) days of non-compliance with conditions (a) or (b), the purchaser
will notify the Commissioner of non-compliance and will repay the grant.”Check out the website http://www.osr.qld.gov.au under FHOG and residues. Section 2.1 – instalment contracts. This will be more reliable than my memory!
Hope this helps!
Li-Sa
Hi all,
Great new site Steve!
How about looking at the vendor’s motivation to sell? If they have already committed to something else you may be able to solve their problem and get a win-win outcome. ie. Placing a cheque on the offer for instant cash and getting the house at 40 something thousand.
Li-Sa
