I would be interested to learn what seasoned investors normally put down as a deposit. 5%, 10% or normally lower and if they believe less than 5% is still OK?
As little as they will accept as I want to keep my money in my pocket. It is up to you and the vendor to agree.
I do not understand the issue as the money can’t be accessed untill settlemant anyway.
CATA
Asset Protection Specialist
[email protected]I am not a seasoned investor at all, but I made a written offer to a real estate agent with just $3,000 deposit for $93,000 property, which was accepted without any problems.
I heard before somewhere that agents don’t mind as long as the deposit covers their commission.
I read in a book even $1,000 should be all right.How about $50 on a $137k IP.
CATA
Asset Protection Specialist
[email protected]As has been stated there is no given amount merely a figure which the vendor feels confortable in accepting.
Cata is incorrect when he states “the money can’t be accessed until settlemant anyway” as with most Development contracts the deposit is released to the purchaser either on the date of signing or when the contract becomes unconditional as these contracts tend to be of a lengthy nature.
Again it is all about what is acceptable to both parties
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
I have done no developing so this is new to me. But this was my understanding of residential contracts. Correct me if I am wrong.
Thanks Richard
CATA
Asset Protection Specialist
[email protected]The deposit can be accessed prior to settlement by the vendor using a sect.27
The buyer can delay the early release of deposit funds for 28 days after the sect 27 is served.
I have just done this for a residentual sale.Rgds
Buylowhi all
if you make the deposit subject to an agreed account that the money is out into and the vendor agrees you can delay the settlement of the moneys for some time the figure is an agreed amount I like 5% put ususally get my 5% back at settlement just depends if If negotiated correctly.
I’m like cata I give as little money into the deal with the most amount out.
There are alot of ways to pay the deposit and not with cash get the vendor to vendor finance the deposit is a favourit of mine at less then bank rates I have 180k at 4% vendor finance to me with a caveat on the property I have no money up front on that deal at all.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]$500 is my standard first attempt.
I have paid 10% on a couple of occasions.Do you mean with regard to the deposit to secure the sale or the deposit paid for finance purposes?
if you mean with regard to the deposit to secure the property some vendors will only accept the standard 10% deposit however most will accept 5% deposit. I would recommend negotiating the deposit with the vendor AFTER the price has been negotiated. Deposit bonds are also a good way of securing a property without tying up your funds.You only pay the deposit bond fee on the amount of the deposit so it is still beneficial for you to negotiate a 5% deposit instead of 10%.
If you are referring to finance then most of my clients borrow the maximum (some lenders will allow up to 106% of purchase price) or use the equity in another property to borrow full purchase price plus costs so that you can use any extra funds to invest in another property or alternatively pay them off your own home loan
Anita Marshall
Advanced Finance Solutions
Ph 0429810906
http://www.advancedfinance.com.au
[email protected]
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