I have 350 K in portfolio account and I plan to purchase properties outright especially if motivated sellers.
Can I write the cheque for 100K (for 100 K property) and not bother with the 10% deposit etc and own the property on the day including all other costs
OR
will the only option be to settle in 30 days, get builing and pest and legal/conveyancing etc done.
OR
can i choose to settle quicker if i know i can all the inspactions and legal done quicker
This is important i’m sure for all out there who does the same thing especially if the property is right and seller is very motivated and I would like to help this process in my favour
Any advice on what you guys do would be great
To answer you questions:
No
Yes
NoI am not sure about the law in your state, but here in Victoria, settlements are 30 days minimum. Even if you go ahead and organise the pest and building (and whatever else) inspections, most conveyancers or solicitors will require a minimum of 30 days settlement, just so they can do their paperwork!!!
Good luck, glad to see a keen buyer, but don’t worry I am sure the property and its owner won’t run off on you.
Jo
fjficm,
There are ways to negotiate a fast settlement in most states.
Why buy outright however – why not buy at, say, 60% LVR. Most properties will still be nicely positively geared, there’s no mortgage insurance & you’ll increase the size of your portfolio significantly.
Remember – if you only put 40% of the money down, 100% of the rent & 100% of the capital growth are still yours.
Cheers,
Aceyducey
Hi fjficm,
I agree with the points made by Aceyducey,
Why not use the funds available in the LOC as a deposit on a 80/20 or 60/40 lend etc,By implementing this method you could increase the amount of properties in your portfolio,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
To get the best price, never go cash as you might miss 20K worth of repairs you then get stuck with. Arrange a fast building/pest inspect on all and if someone is keen to sell, go for other clauses like access to property for repairs once contract is unconditional, prior to settlement.
We had a LOC initially and did what you want to do. Bought 3 properties outright but once we had the titles we used them all within 6 months to fund 8 other properties at 80% 20% ratio or 80%LVR.
Main thing is, do it your way so you are happy and keep on buying.
DD[buz2]
WoW DD
Congratulations on your achievements and welcome to the forum..
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