All Topics / The Treasure Chest / Market Value > Contract price

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  • Profile photo of matduquamatduqua
    Member
    @matduqua
    Join Date: 2003
    Post Count: 11

    Please help.
    I have secured a property for a price that 10% less than current market value.
    My cash flow is low, I only have 5% plus satmp duty.
    I am having difficulty in borrowing 95% due to my high commitment (fail the serviceability test, try ANZ, BankWest & NAB).

    Is there a work around solution?

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    How about taking an investor on board, one who will lend you enough money to get you down to an LVR you can borrow at (ie 80%).
    You can then either work out a profit sharing arrangement with the investor, or pay them a straight % return on their funds.

    Keep smiling
    Felicity 8-)

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Is the vendor willing to carry some of the debt back as a second mortgage. Offer them above market rates to provide an incentive and see what happens.You never know till you ask.
    Have you got a good Mortgage broker onto the case. They often can see solutions we can’t.

    Enjoy
    AD [:0)]

    “Enjoy life. There’s plenty of time to be dead.”
    -Anon.

    Profile photo of hilaryhilary
    Member
    @hilary
    Join Date: 2002
    Post Count: 146

    David O’Brien is a broker who mite b able 2 help – but u would probably be looking at a non-conforming loan and the rates would be steep. If u want to contact him, his email is
    [email protected]. Good luck[;)]

    Profile photo of TheBTheB
    Member
    @theb
    Join Date: 2002
    Post Count: 135

    Hi all

    1) If you are confident that the market is rising, go for a long settlement (at least 6 months) and hope that the market rises enough for you to get in at new valuation (hopefully closer to the magic 80%)

    2) sign it up and on sell to another invstor, again requiring longer settlement

    3) variation on 2) is to sign up with a long cooling off clause and then try to find some else to assign it to

    4) get a long settlement and work in your J.o.b. to raise sufficient funds to lower the LVR required.

    5) If the deal is looking good numbers wise, offer some friends a piece of the pie either based on a fixed % return on their investment or as equity partners (now there are a lot of issues in this baby, believe me [:D])

    Mmm that’s all for now

    cheers

    the B person [:)]

    Profile photo of matduquamatduqua
    Member
    @matduqua
    Join Date: 2003
    Post Count: 11

    Thankyou everyone for your advise.
    I will give it a try.

Viewing 6 posts - 1 through 6 (of 6 total)

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