Hi everyone Trish here, ADVISE ANYONE even if you don’t think I can do it. Just tell me how leaving money in the deal works.
Can anyone advise as what to do? Have been looking at property and have come across property’s that can have value added to them.
Like a 60’s 2bd house one of 2 on a block for sale, every thing inside is 60’s, there are floorboards under the carpet, its on stumps, original wiring, original kitchen (green) so it would need a complete reno. Maybe could get away with not painting. rented at $150pw before any work done,
vendor needs to sell as moved away from area, price $145,000-165,000 brought 2 yrs ago for 152,000 and agent has told me that vendor knows she will not make any money.
Question:1.
My problem is money, I have about 2,000 to my name, renting, 3 lovely children, and a lovely husband, (oh buy the way doesn’t think I can do the investing thing,) if I ask the vendor to leave some money in the deal for my deposit, how does it work??? and how do the lenders look at it, because that is my next problem getting finance to buy it, then comes the reno costs. We do have other debt car loans, B/Cards, but the good thing out of all this is that we can save 250.00 pw.
2. Do I get cheeky and offer a low price as well when I’m asking the vendor to leave some money in the deal.
Any advise would be appreciated.[hmmm][rolleyesanim]P.Stickels
pstickles,
Sound to me like your first step should be contact a broker and get them to run the numbers for you. You haven’t said whether or not you already have a home with some equity that you can use or whether this property would be your first purchase in which case you may be able to access the $14K first home owners grant. I think you’ll need either of these options because $2000 alone won’t be enough of a deposit to satisfy majority of lenders.
Also don’t forget all the fees, stamp duty etc. Assuming a purchase price of say $150K you’ll need about another $6K to cover these. If you can work all this out then think about how you’re going to finance the refurb. You’ll have no rental income through this period so there won’t be much left out of your $250 spare a week to put into a refurb. Seems to me that you will need to borrow some extra to cover the cost, complete it as quickly as possible and get a rental stream happening ASAP. Other option is to rent it as is and forget about doing the refurb until later on when you have some CG and therefore some equity to borrow against or until you have saved enough to pay for it yourself.
Flatout
Trish
Which State are you referring to.
Will it be the first ppor and is a regional property?
This additional information can get us started.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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