Hey Guys
I am starting the process of looking for my 1st property. I am going to live in it for 6 months to take advantage of the FHOG and stamp duty discount.
I would like to use as little of my own cash as possible as i would rather put it elsewhere for the time being. I have alot tied up in the stockmarket.
From the agents i have spoken to so far all i keep hearing is that when i exchange i must hand over either a 5% or 10% deposit. Now i know that on settlement date i have to come up with the difference between what the bank will give me and the purchase, thats obvious, but, is it a rule that i have to hand over 5% in the meantime or is it just a preference?
I remember Steve mentioned in his books that he stuck to $1000 deposits, has anything changed since then?
It is very negotiable and $1 is legally enough.
But, the Agents and Solicitors need to recover fees if the sale doesn’t go through. 10% easily covers this and you will find most agents and solicitors advising their clients to only accept the full 10%.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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