Greetings all
I am enquiring about some legalities regarding a property I am in the process of trying to purchase. My first offer was rejected.
1) Is it legal to put in an offer asking the vendor to pay all closing costs? This way I can borrow more then 80% of the purchase price.
2) The property has a unit on it as well as the house. Would it be legal to rent the unit out full time and then also rent it out holiday season to other parties and share the income with the full time renter? The property is in a popular holiday destination.
Any comments would be greatly appreciated.
Regards Bear
G’day Peter Bear…
1) Why complicate it… just get the vendor to agree to discount by your costs. Yeah..I know what you are trying to do!
2) Don’t do it
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hi Bill thanks for your reply
1) Its so I can borrwow more money. The purchase price would actually be higher so i borrow more money but i still pay the same price in the long run.
2) why not do it? The person wanting to rent the unit suggested it , it would be win/win for both of us. The person is a personal freind of mine.
Regards Bear
Bear
2) makes more sense with the additional info. I was thinking when I read your first post that you would need a seriously flexible/happy person to rent from you full time who would allow the holiday renters. I don’t see why it wouldn’t be legal. It would just make for some interesting explaining to your accountant
]1) Runs the risk of the bank working out what you are actually paying anyway, and only lending based on that value. You also pay more stamp duty on a higher price. Do you not have the costs from your refinance of your PPOR to use? Or are you just trying to squeeze all you can out of it? I do agree with Bill on this one – it makes it a lot more complicated.
Cheers
MelHi Melbear, Thanks for your reply
1) Yes im just trying to squeeze out of it what i can so the PPOR LOC loan can be used for more deposits.
Regards Bear
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