how can l tie a place for sale up, while l sort finance?

Hi Macc,
Depends where you are… If in Qld, perhaps a long-dated contract with $20 down and a few extra weeks than usual for finance would allow you to make it happen – if accepted by the seller.

If in NSW, I wouldn’t know for sure, but I believe it might still be possible to get gazumped in that situation.

Of course, options are an option :p but not commonplace, so I would think the agent would be key in getting it to work. In fact, the agent would need to be onside with the first option too – they usually fight hard for a “decent deposit” so they can be sure of picking up their commission (but that should only be 2.5%, not 10%, so $10k for a $400k house, yeah?)

Anyway, this kind of thing is not in my day-to-day, so I will leave those few thoughts at that, and hopefully others with more knowledge will come by to add some more thoughts…..

Benny

Yes, you could put down an offer which involves a long cooling off period, subject to finance, subject to building inspection etc. This way you can pull out and get your full deposit back if you cannot meet the condition.

Another option is to use an option agreement, but this is for more longer periods.

Can’t come up with $1?

Put it down as deposit.

There is no requirement to put down 10%.

Purchased many a Million dollar property with $1000 max.

Cheers

Yours in Finance

It is very common to see $1000 put down as a deposit. $1 is not so common, but I have done deals where there is no deposit until the contract goes unconditional. So you would put down say $100 now with the remaider making up 10% when the conditions are met – subject to finance etc. And it doesn’t have to be 10%. COme to think of it I have seen the 10% paid at settlement.

Macc getting finance lined up in Regional Victoria would be the same as if you lived in Helsinki or centre of Sydney as most applications are lodged online and merely a matter of gathering up certain documents.

Hate to say in 2016 lenders require a reasonable amount of documentation however a good investment orientated mortgage broker should be able to guide you thru the process.

Your location wouldn’t mean more work for either party.

Cheers

Yours in Finance

Hiya

Talk to the agent and negotiate a small deposit with an extended finance clause period.

It won’t be an attractive offer (because they will need to wait a while for you to sort out finances) but if the property has been on the market for a while you might have some luck.

Get a decent broker on board to get this sorted asap too – Richard or Terry above will do a good job.

Cheers

Jamie

Hi Dean,

As far as the ATO is concerned the date of purchase then becomes the first date of the deposit right?

As far as I know, the Contract Date is the date that is used by the ATO. This has likely “caught” many people in the past (e.g. the seller wanting to sell a property in a new FY for CGT purposes – they are expecting a lower income in the new FY). So they put it on the market and have an offer on contract signed in June to settle in August.

ATO uses the June date (contract date) for CGT purposes, and the seller then has the relevant profit added onto his higher salary from the past FY, instead of onto the lower expected income of the new FY. His debt to the ATO has also moved forward by several months (eeekk!!). Check it out to be sure …..

Benny