Hi guys.
We have found a place we want to buy for our own residence .
The thing is I am doing two IP properties right now and we have been renting while I finish those and waiting for something we like to come up .
I'd like to finish one of the IP's first and sell it before I financed this new place , rather than try some sort of bridging finance or something else.Now the new place is for sale and it is also up for rent , while waiting to sell I guess. As far as I know it's been sitting there empty for atleast 12 mths and came up for sale 3 or 4 mths ago.
I don't think they'll sell it in a hurry as it's not only in a holiday area that has stopped selling lately but it is also a bit of a weird one – the very thing that attracts us but would probably turn most people off .
I don't think they'd rent it out either because there's allot of empty rentals here right now .I'd like to put in an offer to the owner personally , something binding my purchase but also giving me any time I need which could be 6 or 12 mths but , that would also help with the financing of it later when the time comes if that makes sense. Somem that looks good to a bank.
I don't want to just rent it until then but if I had something binding then we could take it , move in and also start work on the place as well while I finish one of the other two. That should be 3 or 4 mths but I wouldn't like to commit to that sort of time frame in the offer as obviously in these times I won't be able to depend n that .
So if I could supposing he eccepted whatever I dream up , I want it as open as possible but binding .I'm thinking a purchase contract of some sort but with no fixed settlement date , rights to move in and take over until then and with a licensing weekly fee replacing rent that comes of principal when settles or something like that . At least some of it anyway.
But I don't know , there's probably 100 ways to skin the cat and many here far more experienced in this type of thing than me.
Any suggestions .
CheersNo one is going to enter into an open ended contract so you will not a time frame. You could ask for a long settlement, maybe 6 to 12 months with the possiblity to settle earlier, or you could possibly purchase an option and just work out some aggreeable terms between yourself and the vendor.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I would use an option incorporating agreeable terms.
Thanks for those .
Would an option help your case at all in financing it later ?
Anyway I guess the best first step would be sounding owner out first up . If he really wants something done with it he
may even come out with some strategies himself . You have allot more to work with if the ball rolling comes from them first don't you .Cheers
Neither option would not help with financing unless your contract had been exchanged more than 12 months ago, then you may be able to get financing based on the current valuation rather than the contract price.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry.
Yeah I thought there was some twelve mth thing.
Certainly if I can do something secure with seller I could go ahead with renovating and upping it's valuation big time as it is an old house but in great spot and has major potential, but as is , old and devalued !
I should be able to borrow enough against the two we own too supposing they didn't sell or whatever but as we want this place as own residence , I'd prefer to go into it on worst case scenario because you just don't know where things are headed this year- spose you can at least bet it won't be upward .Cheers
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