I am looking at buying a 3 bedroom vila/townhouse and want to do some renovations to it so i will be able to get a higher rental return after i move out after 6 months (so i can get first home owners grant thats why i will only live there for 6 months).
I have heard that there is a way of putting a clause in the contract if you agree with the vendor, for example the proprty is for sale for $200k, and you agree with the vendor to put $210 as the price and have a clause that $10k will be refunded if the property settles by a certain day ect. Anyone had any experience with this.
Or is there a way to get the bank to lend you the extra $$$ if the house you are getting is below market value.I’ve not had experience with either option that you have listed.
Is the house livable to move straight in? If so, then perhpas move in and if the house is actually valued higher than the price you purcahsed at, then perhaps you can then apply for a line of credit for the amount needed for the reno.
Or alternatively, do you already have the deposit, if that’s the case then can’t you use the FHOG towards your reno, I don’t htink it has to be used for the purcashe unless you need it as your deposit.
I’m sure some the brokers on here will have some ideas, these were jsut a coupel that crossed my mind.
Regards
PKI borrowed the full amount for my IP as well as for the associated costs plus an extra 10k for reno costs the bank had no problem with this, the extra was deposited in my a/c on settlement .
Although it was a mortgagee in possesion sale and i bought at below market value. Hope this helps.Cheers
Kessud
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