If you had, say, the finance/equity to purchase only 1 property out of a block of 6, could you buy the other 5, by getting deposit bonds, 1 after the other? Could this be done really quickly (eg: all six houses bought in a week, by getting a deposit bond every day), by going to 6 different deposit bond companies? Can it be done by going to the same company?
Hi Ozboy,
If you can only finance one – then only buy one.
Otherwise you are leaving yourself wide open for all sorts of problems.
If your intention is to flip them you will still need to have a ‘fall back’ position available should you not be able to onsell.
Too risky for this little black duck.
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Originally posted by Derek:Hi Ozboy,
If you can only finance one – then only buy one.
Otherwise you are leaving yourself wide open for all sorts of problems.
If your intention is to flip them you will still need to have a ‘fall back’ position available should you not be able to onsell.
Too risky for this little black duck.
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Don’t worry, my intention is to buy at a ‘discount’, so they have more ‘attractiveness’ to flip.
Ozboy,
To qualify for a deposit bond you need at least 5 x the amount of equity to the deposit bond you are applying for.
Do you have the finances to purchase the 6? If not, applications for deposit bonds are almost defacto loan applications.
Even if you went to 6 different companies for deposit bonds, they all mark your credit history, so you cannot hide these applications.
James
I agree with James. Deposit bond applications are just as difficult as loan applicaitons. So if you can only afford one, then probably you wouldn’t qualify anyway.
And beware of the so called ‘discounts’. Usually it is all crap.
Terryw
Discover Home Loans
North Sydney
[email protected]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
Originally posted by Ozboy:If you had, say, the finance/equity to purchase only 1 property out of a block of 6, could you buy the other 5, by getting deposit bonds, 1 after the other? Could this be done really quickly (eg: all six houses bought in a week, by getting a deposit bond every day), by going to 6 different deposit bond companies? Can it be done by going to the same company?
This sounds like an attempt to behave fraudulently.
Unless if the deposit bonds are secured by different assets you are committing a crime.
If caught (and frankly it’s highly likely you will be), you’ll not only lose most of what you have right now but also find it extremely difficult to buy property in the future.
Cheers,
Aceyducey
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