hi everyone,
I would like to buy a property for around the 400 mark then renovate it then sell. I have $35,000 for the reno but none for the deposit. Is it possible to get an extended settlement with early access, do the reno then use the increased equity for the deposit. Is this a feasible thing to do? Is there another way, or do I just have to consider doing a reno in a cheaper area?
thanks you for any advice
Ben
Hi Ben
Like your thinking but unfortunately in todays climate you wont finance it that way.
Lenders will lend against the purchase price or valuation whichever is the lower and realistically you will not get more than 90% LVR (Sure there are still the odd lender offering 95%) so will probably need most of your deposit just to settle.
Of course i assume that you dont quailify for the FHOG as if you do this will give your savings a boost.
Richard Taylor | Australia's leading private lender
Getting a Licence to Occupy to renovate before settlement is not as easy as the theory. Agents do not know if you will get stuck half way through a gutted house and everyone will loose and the vendor stuck with a house they can not sell for the price they want. The Vendors solicitor also advises the Vendor and will probably advise not to allow it. You have not done them before so no experience would not help your cause. I'm pointing out the negatives but you need to overcome these to even get early access and reno's can take a while to do. It goes on and on!
I like the adage that small fish taste sweeter and that's what i've done till i can get into a different league. If you did manage to bag it… id make sure you achieved these.
Save like hell.
Negotiate a much lower then market purchase price.
Long settlement and extension clause if possible.
Get as many helpers as possible and save buy costing out and saving everything on materials and or work. Negotiate costs and labour prices, quotes etc on everything here to.
Have your end market in mind. So lots of comparison prices research done.
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