hi all,
i would like to know more stratagies about how to do no deposit purchase? i believe that i can find properties to buy but i cna not save up the money fast enough.
i just want to know how people have done it before so i can learn where to start looking.
i know i can get a personal loan and use that as a deposit but was wondering more about vendor finance and how flexable vendors will be on terms, amount, period of time, repayments ect, if you have done this before or have knowledge of information current with this please tell me.
i always do my own research but would like a tip on were to start.
thanks
is buying a house no money of your own really that hard?
Yes, it is not easy. You will need to find someone willing to lend you the deposit, or the seller owner willing to lend you the deposit.
I have received an email from a developer trying to offload apartments whereby he will pay stamp duty, and lend the deposit. You can email me if you want his details.
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
Hi
Technical term, sorry: A second-mortgage carry-back could be your answer.
This is where the vendor lends you the deposit and takes a second mortgage (the bank will have the first – generally for 80%)
Normally you would expect to pay a higher interest, since the 2nd mortgage is not as secure as the 1st. Actually, our company does this, but when we do, we sell at as high a price as the market will bear so there's room to lend the deposit out of our profit. Not higher than market price though, because that does the purchaser no favours, and the valuation would probably cause the lender to offer less than 80% of sale price anyway. The purchaser gets a good deal, because as you say, saving a deposit is hard to do when prices are rising faster than you can save. At least they start building equity from now, not some undetermined time in the future IF they ever win the savings catchup game.
If you are eligible for FHOG you should be able to do this.
Hope that helped
Mr Fair Go
Hi guys I have been working in real estate for about 2 years now recently I have done quite a few no money down deals for my clients mainly new distressed properties 15% to 20% under valuation if you are serious email me and I can send you out some of the deals I get.
Hi Chris,
I would be interested in finding olut more about the distressed sales you mention. However you did not include your email address. Can you please forward to me on [email protected].
Cheers,
JackYou can borrow up to 106% LVR, so you don't necessarily need a deposit, or to rely on vendor finance (which in my experience is very difficult to get in the open market).
You will pay more fees and interest, eg you may pay 10% interest, but if you're very bullish about growth in the area that you're looking at, you may consider it worthwhile to pay that interest in order to get into the market now. If you get very good growth, you can always refinance or renegotiate your terms after a year or two anyway. Some lenders will charge you variable interest rates depending on LVR, and if your property increases in value, you can negotiate a reduction in interest rate because your LVR has dropped. Talk to a broker who's familiar with high LVR products.
Best wishes,
Tracey in Brisbane
106% LVR is only available within certain post code areas (which certainly dont include any smaller regional towns) and is charged at a higher interest rate through a securitised US lender.
The product has many flaws for investors inlcuding high early repayment fees.
100% LVR is available through standard australian Banks and is far preferable even if you arrange the costs as a personal loan or 2nd mortgage.
CHris which State are you referring to with the distressed sales.
Richard Taylor | Australia's leading private lender
Chris.hemsworth7 wrote:Hi guys I have been working in real estate for about 2 years now recently I have done quite a few no money down deals for my clients mainly new distressed properties 15% to 20% under valuation if you are serious email me and I can send you out some of the deals I get.
Chris
As mentioned above, you unfortunately left no way to contact yourself. If any of your deals are in North Queensland please let me know. 0418 199 277
KingB, not sure if its an option for you but you can borrow the lot with cross securitisation.
Hi Chris,
I also interested in finding olut more about the distressed sales you mention. Can you please forward details to me on [email protected]
Cheers,
PhuongHi Chris,
I'll join the bandwagon as well – please send me details of some of the past and current deals. My email [email protected]
ThanksAs the saying goes if you can find a great deal, you will always always find the money some how
I just have to now learn how to find that great deal
Terryw wrote:Yes, it is not easy. You will need to find someone willing to lend you the deposit, or the seller owner willing to lend you the deposit.I have received an email from a developer trying to offload apartments whereby he will pay stamp duty, and lend the deposit. You can email me if you want his details.
Interesting.
When you say; "offload" I'm assuming they are under-market price for existing comparables, or just normal developer's loaded price, but with a Vendor finance?
Hi Marc
They were under market valuation (CBRE) plus he was offering vendor finance and I think paying the stamp duty. He had done a big project and just wanted to get rid of the remaining few so he could move onto another development. I beleiv ethey were genuinely under market value – but all gone now anyway.
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
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