Hi

What are the downfalls for a 90 day settlement? By co-incidence I'm in a similar position – I've made the 0.25% deposit on Monday, to be followed by a 10% next week, and the vendor has requested settlement is mid May.

I see an upside in that the property is slightly negative geared therefore I get any capital growth between now and mid May, whereas I don't have have the operating expense (negative gear) in owning the property for that period.

I guess one downside is that my 10% deposit is accruing interest for the vendor (in a trust account) over that period (when in theory it could be earning interest for me in my bank account).

Alternatively stated, if you have borrowed the deposit money then you are paying interest on it whereas there is no rent to offset the interest cost. In that case if it was a really long settlement period then it may be cheaper to use a bank bond.

But other than the valid points made by fWord and Terryw, I can't see any other downside.

Any other thoughts, please.

Many thanks

Tony