Thanks for the advice

So what happens in the scenario (very common im sure) where the banks are only prepared to give a buyer 70% finance, when he was relying on 80 or 90%?

If financially, the buyer is in no financial position to come up with an addtional 10 – 20% deposit, surely the vendor has no right to hold onto a buyers 10% deposit?

The deal was subject to the buyer getting finance to purchase the property, which he didnt.

Would it better to say the following? :

"This offer is subject to and conditional upon the purchaser obtaining satisfactory finance from an institution of the purchasers choice”.

So once the bank has done their valuation and presented you with an offer for finance, are you able to ask the bank what their valuation of the property is before you accept or decline their finance offering?

We going slightly off the topic, which was the accuracy of property estimates of Residex and Rest Estate Investar..

Anyone else found them to be fairly accurate?

Thanks for the feedback.

Lets say my strategy was to buy atleast 20-25% below market value as my intention was to refinance as soon as possible to use the funds for my next investment.

So I find a property on the market (via and agent or privately) for $220k. I have no idea if this asking price has been inflated by the agent or vendor to get a better price, so the quickest and easiest way is to get an estimate. You run a computer aid estimate / valuation and it comes back as a $200k. I can then compare similar properties in the street or suburb to get a better feel and to confirm this estimate.

My next step is to try get the vendors expectations to something more realistic ($200k), which is where i’m hoping these online estimates come into play.

Once both myself and the vender come to a understanding that the market value is closer to $200k, I am now starting at a better base to begin negotiations.

As my investment strategy is to buy 25% below market value (for refinance purposes), i offer the vendor $150k and depending on his circumstances, will either accept or decline.

If he accepts, i want to know that i will be able to extract some of the equity from the deal for my next purchase. The online price estimate was partly used in arriving to a market value of $200k, which is why i need to be slightly confident that the banks valuation is close to the online price estimate.

Something which i thought about last night..

Lets say i relied purely on the online price estimate, which was $200k. When i put an offer for the property for $150k, would i be able to add the following into the special conditions of the offer:

“This offer is subject to and conditional upon the banks valuation of atleast $200k”.

This way I am safe guarding myself and ensuing that the banks do find value in the property. This is also an ‘escape’ clause to get out the deal. What that work?

Thanks Terry, please do let me know when you do start taking clients as you do seem like someone i could work with

Thanks for all the advice/

Thanks Terry, much appreciated.

Who would be a good person to speak to to get an Offer to Purchase template or Option document drawn up?

Are there any legal guys on the forum who can assit me?

Another question..

What is the mortgage term you can take out with the banks?

In South Africa we were able to get 30 year mortgages.

Whats the maximum mortgage loan term in Austrlia?