Hi All,
I'm currently negotiating a no-money-down purchase. I might be able to get the vendors to agree to leave 25% in the deal secured by a 2nd mortgage. They will get 80% by the bank (low doc), 20% "goes" to deposit and the remaining 5% will be made available as vendor discount at settlement. It should be more than enough to pay for stamp duty & solicitor.Ideally, the solicitors should handle all this at settlement. Obviously, it wouldn't work if the stamp duty needs to be paid prior to that. I think when I bought my PPOR it worked exactly that way i.e. everything was done on settlement (I had 5% deposit then).
So can the above work?
Thanks,
EmilEmil
Depending in which State the property is based will determine when the Stamp duty is payable.
In Qld it is paid 30 days after the Contract goes unconditional and prior to settlement. Can be the same day.
Only problem i can see is that the lender will need to be advised of the Vendor rebate at settlement which will effectively reduce the purchase price and will increase their exposure. All this means they will want to reduce the loan amount to 80% of purchase price and not valuation.
Richard Taylor | Australia's leading private lender
Thanks Richard,
Helpful as always
The problem is, I just found out yesterday that I won't be able to get a 85% low doc because I don't have 2 ( or 1 for that matter) years of ABN. The best low doc I can get, so two MBs told, is 70% which is too low (private sale, owner wants a certain amount in cash).
So the above deal can't work for me unless I find someone to do JV with me and finance it. Would you know somebody like that? I posted a thread asking how to find JV partners with equity and/or neg. geared properties which they wish to wrap. It would be great if you could have a look and give me your opinion
Here it is:
https://www.propertyinvesting.com/forums/property-investing/general-property/4320888Thanks,
EmilEmil
Sorry not sure why you cant get 85% Lodoc. Many of the non conforming lenders will do it with a ABN < 2 years.
Saw your post, you would be better of talking with someone like Paul Dobson down in Newcastle.
Paul is a fellow forum member and does many many JV wraps.
Regretfully we dont JV any of our deals.
Richard Taylor | Australia's leading private lender
Thanks Richard,
I just sent you an e-mail.Cheers,
EmilThanks Richard.
Hi Emil
Karen and I may be able to look at doing a JV with you. I suggest you ask Richard what you can borrow and then send me an email or PM. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,Thank you so much for your interest.What sort of deal are you offering?(I would have sent you an e-mail but there was no address in your profile. Feel free to answer this over e-mail. My e-mail address: [email protected])Thanks,Emil
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