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Cracking response. It took me a little bit of time to digest it.
So what you are saying is that there is a contract of sale put in place with an extremely large settlement period or there is a lapsed date that the deal falls through. Is there also a contract for the rent or is that tied in with the contract of sale.
Does B pay A anything at all apart from rent to secure the property or is it just a higher rent? Is the vendor finance for the entire amount or just the deposit amount. Does the title change hands / when does it change hands.
My reason is I have 500K tied up in the property and I would like some of it back to reinvest in another property if possible. That is the reason I ask if the vendor finance is for the entire amount.
Does anyone else have any experience with anything like this?
Acceptance Finance
Ask for Andrew Sanger
1300 93 11 55
This guy has been making money out of air for me for a while now. He is an investor himself with property east of Melbourne.If the house is new and much the same as all of the street, then the only thing that might seperate it from the rest is an outdoor entertaing area. Doing work internally will add little value. I think you are probably better off spending as little as possible to make a nice outdoor area. This will only matter really if you sell. You need to put youself in the buyers shoes. Pretend you are going to buy another property in the area, what are you looking for, what would you pay top dollar for. What matters to you? You will probably work out from going into other houses in the area and watching the sale prices what you need to do.
Marty
Hello Rome,
It is a simple equation really. Youn can borrow 80% of the value of your property so long as your income can service the loan. Your broker can tell you if that is ok. There are other options if you have run out of servicabilty but speak to your broker about them.
In your example you said you paid 229K for you property. That means if the value is still 229K (it can go down of course) that without paying mortgage insurance you can borrow 183,200 (80%). If your loan is 180K already then you haven't got much equity. You do have 40K in you offset account which is saving your interest repayments. Without knowing all the facts I would say you have 43K available for a purchase. In the 43K you need to account for stamp duty and conveyancing and some other small fees. I would say based on all of this your maximum purchase price is 180K. I have based this on a 20% deposit of 36K and Stamp Duty of 6.5K. Servicablitly will be your only issue as I don't know your income. The situation changes dramatically depending on your situation.
You need a boker if you don't have one. If you need one I am sure plenty of people on these forums know one or I can give you mine if you like. One thing to consider is that banks are like the America's Cup. They change the rules all the time.
Good luck.
You may have misunderstood what I said. The land is not a new estate. It is a piece of land in a well established suburb. A developer has had plans drawn up with permits and is now selling the newly create block. I am not sure if I should buy the block or find a house, like the developer did, on a large block and subdivide it myself. I would sell the front house off and keep the vacant land.
Martin Wooding
Quadre Property GroupI don’t know the exact answer for you but I can tell you that most builders allow a 500mm rise or fall before charging more.
Martin Wooding
Quadre Property GroupThanks Geo.
I am curious as to why you don’t want to own commercial property.[cap]
