I’ve wondered about this same topic myself. I understand that by paying IO then the repayments will be a lot lower which is great but the down side is then going to be the fact that you will never therefore own the property.

What happens when you finally make the last repayment of the IO loan? Does the bank own the property?

As mentioned above though the seller is usually the one who has the unrealistic expectations. I’ve seen it quite a few times where we have sat down to list a property and presented a realistic figure to the seller and then another agent says they can get 20, 50 or 100 thousand more and we simply don’t get the business. Next thing you know the…[Read more]

Okay, I find what you have both said pretty disturbing.

There is two reasons why we will ask for the 10% deposit.

1) By putting a 10% deposit on the table the buyer is commiting themselves to the deal and therefore there is a lot less chance that they will pull out.

2) The seller can see that the buyer has commited and therefore will realise…[Read more]

I’ve just started in the real estate industry as an agent and in our office we only get paid after settlement. I’m not sure what happened to you in the past but I believe you should only pay when you have accepted an offer and settled.

I’m writing this from Sydney so maybe in different states there are different rules. I’d suggest you ask your…[Read more]