Hi everyone,
I would like to put an offer on a place on Thursday morning. This would be our PPOR and first buy. Would it be realistic to be able to settle before the end of this year to take advantage of the stamp duty concession while it lasts? Taking into consideration the Christmas break and when people would be taking holidays ie. Mine and the vendors solicitors. Could someone help me with wording a line in my initial offer in regards to what what I have mentioned above (assuming it is a realistic timeframe). Look forward to your responses.Cheers
My broker has just clarified that the date of exchange must be before the end of the year and not the settlement date!
Yep it’s the day you sign the 10% deposit…not settlement date.
So really you can still buy RIGHT up to 31st.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks Michael. What would be the quickest settlement period in a property transaction that I could put into the offer? The vendor is selling at a loss and I would like to sweeten the deal for them by settling asap?
You can do it!!! I got my paper work approved and sorted out before the end of the month.
If the vendor is selling at a loss why dont you request to have a faster settlement date as it is to their advantage. Do you have a reliable coneyancer or solicitior? My conveyancer speeded the process by having the buidling inspection, stata and pest check up pretty much the next day.
Dont forget the holding deposit as well
Yea solicitor is really on the ball, although it's now after COB where she is and still business hours where I am so I thought why not put the question to masses on here. I will chat to her tomorrow re: speeding the B+P up too cheers
yes and dont forget the lender as well. They may want to do a valuation of the property
Which lender are you going with? If they allow the broker to order valuations upfront then that can speed the process up. As soon as your offer is accepted – they can hit submit on the val order.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie,
Bank is CBA, I'll have a chat to him tomorrow and see how quick I can get the valuation done, I remember him saying they are pretty quick with valuations.
I am still trying to figure out how to put my offer together. The property is does not show the address on any of the listing so I can't tell if the price has been reduced over time, however I did find an old add saying it was going to auction in mid September so it obviously didn't sell then. The agent did tell me that he has another interested buyer but whether he's pulling my leg or not to hurry me up I don't know. I'm thinking I'll go in at close to asking price as I believe it is a good buy at present, plus my pregnant mrs is in love with it!
Let you know how I go
42 days from today is about the 21 Dec. You are cutting it very fine (in NSW anyway). Just remember that everyone wants to settle before Christmas and the banks are overloaded with trying to get paper work out etc. Its teh most hectic time of year for this. Try for a 30 day settlement maybe.
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
By the way is the property tenated at the moment? If so they still have an exisiting contract, they are allowed to stay there till the expiry in case you wanted to move in yourself before the end of the year
I think you can settle by the end of the year!
I often make an offer which gives two different prices depending on the settlement dates (I can give you a copy of the offer letter I use if you’d like – simply email me through http://www.everydaypropertyinvesting.com).
Thirty days is not out of the question – in fact I have bought two properties this year on thirty day settlements and they both went through fine. Let your broker know that you’d like a quick settlement. Just make sure everything else is OK and you do your due diligence regarding the property!
Good luck!
Cheers,
DenThanks Den, I have shot you a message on your website.
Thanks everyone else for the commentsAs terry mentioned Nov- Dec is the busy months+ low on staff
2 days for valuation
1 day for Pest and Building
2-5 days for Bank final approval ( depending on the bank; some like suncorp are running on a 7-9 days timeframe right now 0.o)
2 days for letter of offer to be received from bank
1 day to full fill LOO + insurance ( Depending how experience you are with LOO and reading contract; if you need your lawyer or broker to help you out with the form then it may take another 2-3 days…)
2 days Mail
2-3 days ConfirmationNow your already on the 18th day…and this is based on no hiccups + 18 WORKING days = ~22-23rdnd day..
If your a FHO i would suggest go for normal settlement. If your an experiecned investor then 30 day is fine…i wouldn’t go under 30 days given it’s close to x-mas
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Michael,
What issues can you see with 30 day settlement for FHO?
plenty…the list is endless lol
And since you are a FHO- i say ride out the 42 days normal settlement and learn from the experience + you wont feel as “rushed”.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Searches have to be ordered and received back. Sometimes there are hiccups here. For the outgoing mortgagee to be ready for discharge takes at least 2 weeks too.
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
+ late for settlement = 10% interest penalty (pro rated daily)
Early for settlement = you can push it forward if you wish….
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Grantos
A 30 day settlement should be reasonably comfortable at this time of year. I am assuming the S32 is prepared. Speak to your conveyancer and make sure they are OK with proposed settlement date.
The critical issues are the valuation (especially if ppty is not vacant), the FHOG (if the funds are required to complete purchase) and the Bank Manager/Mortgage Broker's organisational skills, experience and can-do approach.
Although I don't encourage the practice, I am still happy for my clients to sign 30 day settlements if it is critical to landing the purchase and if it's OK with each conveyancer.
Tim McGrath, Tick Mortgage Solutions
Blackburn North
(03) 9877-7077 | [email protected]I have a relative inspecting the property this afternoon on my behalf. If she gives it the all clear I plan to email the agent my offer first thing on Thrusday morning. In regards to the numerous clauses that I have seen floating around the forums, is it worth putting them into my initial offer? We are wary of all the small things that can go wrong but should they just be covered in the contract once my solicitor has the contract? My offer I am going to put forward will be define price and settlement length, do I need to mention subject to B&P, finance, etc in the initial offer….?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
