How’s everyone going.
l’ve posted a few varied questions so far because my situations been up in the air and thanks for replies but we’ve decided on this one finally l’m just not sure how to go about it .
My house is up for sale – we want to move back down to VIC and have found the property we want .
ls there a cheap safe way l can tie the new one up while l’m waiting to sell this house .
l’m thinking a deposit bond and asking for a long settlement ‘ allowing time to sell here first , say 120 days . they’ve agreed to that ok , l haven’t asked them about a deposit bond though .
Also the deposit bond l guess would need to be $20 because the new house is 200k.
ls this a better way to go or less costly -incase l didn’t sell here in time and the new one couldn’t go ahead or whatever ? l can’t afford to be out of pocket too much if it was to fall through .
thanks guys.
MarkHi mkc,
Have you investigated the needs of the seller in VIC? There might still be a win/win situation.
“Understand the needs of the seller and tailor your strategy to that need.” – Steve McKnight.
You might not need a deposit bond if you can cater to his situation. You might consider paying a bit extra for the property on the basis that you could have a long settlement and only pay a small deposit on signing.
Dan Lewis
You may not need to give 10% deposit.
ALmost every property we purchase is on 5% deposit.
Many vendors are happy to accept a delayed settlement as they need to find a new home for themselves.
As Dan says, find out what the vendor wants – find out his needs before making any further offers
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auWhether you use a deposit bond, bridging finance or cash, if the purchase falls over after you sign the contract, you will still more than likely be up for 10% of the purchase price. Using a deposit bond does not avoid this. They pay out the 10% on your behalf and then chase you for the money.
There are some great bridging loans out there that will let you run up to twelve months without requiring payments. Obviously the interest will capitalise if you don’t make payments but it helps people get into their next home.
Serviceability is calculated on the ‘end debt’ so it is not as difficult to get approved. The end debt is just the amount expected to be owing after you sell your current property and put the proceeds towards your new property.
Also, youn could still ask for a long settlement or 5% deposit using bridging finance to reduce your expenses until you sell your existing home.
Talk to a mortgage adviser before doing anything.
Robert Bou-Hamdan
Mortgage AdviserThanks for the good ideas and advice people, muchly appreciated . We hope to hear again from the owners shortly about a few things Dan suggested plus they’ve now agreed to a lower deposit so it’s a good start. Hopefully we can work out the rest from there.
Mark.
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