Hi guys,
I was just wanting to find out how holding cost work,
as well as delayed settlements work.
Thanks Josh
JBuggy
Not sure exactly what you are asking here…
Anyway, a basic rule of thumb is allow about 20% of the rent to be swallowed up by holding costs (other than loan interest).
If a settlement is delayed past the agreed date, and it is your fault, then you can be up for usually around 13% interest on the property price, charged daily. You will have to pay the amount at settlement.
for example: property price $300k , settlement is delayed by 12 days.
13% x $300k = $39,000
$39,000/365 = $106.84 per day
12 x $106.84 = $1,284.19Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
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