Hi Guy’s,
I’m looking to sell a property (valued at$520-$550k) leaving 10% in the deal (for 5 years P&I @ 5%)
My motivation for this is to:
1.) Make the property more appealing to the potential buyer & get a premium price.2.) Continue to make an income from the property.
My question is:What is the safest way I can do this (second mortgage?)
[crying] Any suggestions? as i still have my training wheels on.
Cheers,
Don
Yes 2nd mortgage is the easiest way to go.
We have done it on numerous ocassions and as long as it is well monitored each part wins.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hello Dondent,
Just wanted to know the details of the deal yuou are selling.
Private message me if required.
Thanks
DonDear Qlds007
Could you possibly run through the scenario for Don in regards to a second mortgage.
If you could just roughly run through what a second mortgage will do for him.
Sorry I know this is probably really obvious to you and others but I’m pretty “green” and still trying to learn basic stuff.
Appreciate your time.
Vivy
Vivy
Assume that you have a property for sale for $100K and that your buyer has a nil deposit.
One alternative is a 100% loan from a standard lender but in many cases the costs associated with such a loan means that the buyer will still need to have some monies up his sleeve.
Let us assume that you tell your potiential buyer he can arrange a loan for $90,000 and that you will allow him to pay the balance of the purchase price of $10K over a 5 year perdiod.
By doing this his costs are reduced as the Bank consider it to be a 90% LVR and this makes it more attractive. You secure your 10% byu way of 2nd mortgage and in some cases actually assign the First Home Owners Grant to you (after costs) to reduce your loan balance.
If you are the Vendor then you may charge a rate similar to a Bank loan in many cases dependant on the property and the client we charge upto 14.25% on the 5 – 10% and the overall loan is still attractive.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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