There’s nothing you can really do about this. It is just unfortunate that it occured this way. The sale is not secure until contracts are exchanged.

Maybe you can contact the owner directly, bipassing the agent, with your offer – the other party may not have exchanged.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Go back and have a look at some of your old magazines such as ‘your mortgage’ etc. Look for old predictions and see how many get it right. I don’t think it is very many!

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Hi Kerwyn

I’ve done 3 lease options myself – selling the option.

I did it because:
– You collect an upfront option fee
– You get much higher rent
– You get the tenant to pay for all outgoings and repairs
– You get a small capital gain when the tenants cash you out.
– There is a fairly high chance the tenants will move out and not take up their…[Read more]

I agree with the others that you have to be very very careful – especially in this market.

One thing some people don’t realise is, even if you can onsell before completion you will not get you deposit back, or the profit until the whole project is complete and settlement occurs.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Just remember that Land appreciated and buildings depreciate!

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I replied to a similar post a few weeks ago.

You could sell you share of the house to your spouse, and he/she could borrow to do so – deductible debt. The money released would be tax free and could be used for your PPOR. You may not even have to pay stamp duty on the sale in some states.

or it may be better to sell to a trust as Steven…[Read more]

I just received 2 tickets in the mail!!!

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

You are just looking in the wrong areas. You have lots of options open to you such as:
– Lenders that allow business add backs (may not work for your case)
– Low Docs
– No Docs
– Pure Asset lend type loans where they don’t care about your CRAA, Income, Asset levels etc

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Lucifer, where do you come up with 15% from??

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Yes, these sorts of loans are not cheap – probably 10-12%. But these are only short term, so once you finish you can refinance or sell off etc. You wouldn’t need additional security, but the valuations have to stack up.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Yes it could be done, depending on margins.
eg you could get a loan based on 60% of the end value with the interest capitalised. So it soemthing will be worth, say $1mil when finished, you could get around $500,000 with the ability to let interest capitalise until $600K.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Hi Michael

You can substitute security, but it is hard to find something around the same price that will settle on the same day as your sale.

However, Some banks like the ANZ will give you up to 3 months to find another property – they will take keep the loan there waiting.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

yes. there are quick lenders out there – some cansettle in 2 days. rates are around 5% per month +.

But if your dad’s property still has a mortgage over it, I don’t think you would be able to settle on it until this is released.

And sue the CBA for compensation.

Talk to your solicitor about all of the above.

Terryw
Discover Home Loans
North…[Read more]

100% offset can work very well if you ever move out of your home. Just pay the minimum off you home loan/interest only and plough all of your money into the offset. This will have the same effect as a LOC, but probably at a cheaper rate. Then if you move out, you just take the money out of you offset and plonk it into the new offset attached to…[Read more]

Doa search on the ATO legal site as there are some tax rulings on there regarding this – especially the one on how to calculate interest if it is just one big loan (=one big headache unless your a professor of mathematics).

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Hi Greg

I haven’t done this myself, only have theoretical knowledge!!

I suppose, the worst thing tha can go wrong is they stop paying your loan. In that case, you have a second mortgage so your fairly secure – if the values were as expected. You can take legal action to get your money back, and in the end could probably foreclose on them. But I…[Read more]

It sounds like your investment property has no loan as you have used a loan on your home. This is a good way to buy property as you can pay cash.

This is what I would do.

Get a LOC on the investment property for as much as you can. Then go out and buy undervalued property for cash using this LOC. do minro rejuvenations, and then get a LOC on…[Read more]

I think joh wants to buy a property and rent out the spare rooms to his mates (and have girls over!!).

Sounds like a great plan to me!

And I think the plan of buying a property is great too. It all depends on how strong your income etc is for getting the finance.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

I think you must have been reading american books. What do you mean by assignment of contracts? If you sign a contract for sale and then onsell you will be up for stamp duty. In NSW you cannot swap a contract to someone else that easily. If you use and/or nominee, then it may be possible in limited circumstances, but also be careful of the state…[Read more]

I had a client in a similar situation. This seems to be common in the IT industry and some banks will treat you just like an employee. BUT if your contract is ending soon, they won’t like that.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au