Hi,
I have a couple of questions …1)
If I make somebaody an offer on a property thats not on the market and they like the offer and want to sell how would we proceed. I assume there would by no nee to involve a real estate agent. Would he just get his solicitor to draw up a contract and pass it on the my solicitor. Or if both partys were really savy and had the time could they just apply to the govenerment for some forms and do it them selves with no middle men involved ?2)
If somebody agrees to sell to me at a figure which is clearly below the current market value, lets say %15 less can I go to the bank and use that as the deposit. Lets saythe bank wants a 20% deposit but I buy the property at 15% below its market value can I get it valued and just put in 5% myself.
Are there any angles I can play here or do I just have to wait until after the purchase to realise my capital gain. ?Thanks,
Mark
1. Yes – just get the solicitors to handle the transaction. You will not need an agent.
2. No – The lenders will only lend on valuation if it sold under value by family or if a protracted settlement is used – typically 12 months.
You can settle on the purchase price then ask for a reval and refinance. This can be done with some lenders.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi,
Can you elaborate on question 2.
What if somebody (not a family memebr) is in financial trouble and you make them an offer say 20% below the market with say a 30 day settlement.Can you go to the bank with that and use it at part or all of your deposit ?
Thanks …
Hi Mark76g
I recently bought a commercial property financed by St George Bank – at 16% discount to the valuation. St George said well done, half your luck mate, and allowed for this 16% amount to be additional equity (deposit) for me in their LVR calculation, and why not !
It should be the same scenario when the property appreciates and you want to utilise that CG as a deposit on the next IP. If you can buy at a discount, you’re a better risk than anyone paying full price.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Mark,
On your first point I’d suggest that you have a standard contract drawn up that the seller can use.
Make sure it’s fair & it will cut down on the time required to reach a conclusion.
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
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