situation:
2 weeks ago I put in a contract for a house, about 10% under market. contract accepted on following terms:
1. building & pest 14 days
2. finance 14 days
3. subject to sale clause, must be unconditional by 23 Augyesterday agent calls me to say they just received 3 contracts. tells me I have till Weds to go unconditional. mortgage broker says current lender wont support the deal, as granny flat has no kitchen, meaning the rental income we claimed must be ignored. we have the kitchen sitting in our garage. mortgage broker wants to apply to other lenders and suggests we ask for finance clause extention.
subject to sale clause states I have 3 days from receiving the other contracts to decide if I was to go unconditional. As the agent didnt supply me with the contracts yet, and says she will post them Mon, probably receive them Tues, shouldnt that make D-day Fri? Or would she have faxed them to the Solicitor Sat and 3 days starts then?
Is it likely that the vendor will accept an extention to finance (due Tues) ?
What is a realistic min period for settlement since the solicitors were informed 2 weeks ago? ie, do they need 21 days from when I say “go unconditional” or would they already have the ball rolling? vendor wants out a.s.a.pIf I was to quickly install the kitchen is it likely the valuer would reconsider? would the vendor say no?
other property goes to auction Aug 11, so seems like there could be a 1-2 day shortfall between unconditional contracts on both. if I can get unconditional on previous house few days early, that would solve everything.
Crashy,
Apart from the legal interpritations of the contract, my main concern is your statement to install another kitchen in the property. Are you aware that it is not legal to just install another kitchen in a house in Queensland? (one kitchen per dwelling). You would have to make application to council to convert the existing dwelling into flats and meet the stringent requirements that are imposed on multiple dwellings.Have you sold or got a contract on your other property? If not it may be best to just walk away and look for another house when the timing is better.
Jon
The agent told me the flat already has council approval, and that it did have a kitchen which was removed to create additional living space for the daughter & family. disconnected plumbing confirms this story. anyways I was only going to make it look the part as the new kitchen is for the house, old kitchen from the house going into the flat. had no intention of using the expensive new kitchen in the flat. of course the solicitor wont bother doing the council search until its unconditional which would then be too late anyway. council approval is not the urgent issue anyhow.
A property with 2 incomes (ie positively geared) is rare and I certainly wont walk away that easily, especially when its under market value.
crashy you'll find that it is not legal in Brisbane to rent out the grannyflat separate from the house. Grannyflats are for your granny or some other family member.
In saying that, I have a grannyflat at my own house that i rent out to a bloke (no relation) who pays my kids school fees. Frankly I think it's crap that I can rent out a room to a stranger but not the grannyflat.
I also have two IP's with granny flats. One in strathpine, rented to one extended family at $400/wk. The other, kippa-ring rented to separate parties for a total of $470/wk. AS an aside I did mention that I didnt like kippa-ring for a growth 'burb but as you can see its a great rental return. I manage these houses myself because agents have always underquoted rental returns.
I don't know why you had to mention the rent return when you applied for the loan. But don't tell them about granny flats or anything if you must give rent returns. just give them the total rent.
It sounds like a good deal so If you are positive you are going to get finance let the contract go unconditional but ask for the extension to arrange the finance. Also in future, ask for 21 days before contract goes unconditional. Banks and solicitors%^$$(*&$&*(^%$&$&^&$%!!!!!!!!
CAn I ask where the property is situated?,
Why not just pay cash for the property and then worry about the financing after settlement.
Richard Taylor | Australia's leading private lender
The mortgage broker didnt say how the rent was made, but the valuer did.
our intent (as far as the bank needed to know) was to live in the granny flat and rent out the house. but we only need to make this argument so the bank can see its viable long term. we are holding for 1-2 months only.
how can I go unconditional AND ask for an extention on a condition?
Growth isnt my concern as it will be a quick reno then back on the market.
“ask for 21 days before contract goes unconditional”
you mean finance 21 days instead of 14? why would that speed up solicitors & banks? dont they drag their feet till its unconditional? on a 30 day settlement that leaves 9 days for them to pull it all together. am I missing something?
“Why not just pay cash for the property and then worry about the financing after settlement.”
wow thats brilliant. why didnt I think of that. hold on a minute while I pull it out of my rear end. wheres the punchline?
There is no punchline !!
If your broker isnt performing look in the yellow pages as they are dime a dozen some even have more than a years experience.
Richard Taylor | Australia's leading private lender
well thats a big assumption you are making.
she could have taken the weekend off but instead was in the office for me. she goes as far as to harrass senior bank employees when the bank drags its feet. she is as close to a miracle worker as you can get.
quite happy with her performance thanks!
she would defend herself, but she is too busy putting deals together to post on a forum.
good reply crashy
Oh well Hutch is good aly isnt he.
Richard Taylor | Australia's leading private lender
Good reply Richard!
Its truly sad when someone uses a forum named “help needed” to put the boot into others. I pity you
whats the matter………dont you enjoy life or something?
Actually Richard is very experienced and efficient broker /financial advisor/ investor and has been in the game a long time. He knows his banks, the deals they offer and has a backup one lined up if something goes wrong with finance (he rescued me when I stuffed up some paper work). When time is of the essense he hand delivers or arranges a courier. He bends over backwards to get the deal thro in time.
I do not believe for a second that he meant to 'sink the boot in'. Maliciousness is not his nature. Your own broker is probably just as efficient. But you have to admit there has been much negative publicity about every tom dick an harry setting themselves up as mortgage brokers. Yes you wrote to the forum for 'help needed' but it is really up to your broker to get you the finance in time. That is what Richard was pointing out .
Sorry Richard if Ive embarressed you for flying your flag
'Good on you Milly, While I do not know Richard personally, I have always found his posts to be thoughtful and helpful.
While Crashy may be knowledgeable about the Share market, I feel that he has a lot to learn about purchasing property.
The subject to sale clause is the week point in his contract. If the Seller has in fact got 3 new offers on the property (and provided that the new offers are relatively clean contracts), why in the world would anyone expect the Seller to stand by the first offer. It seems to me that so many people expect everything to go their way and have no regard for the second person.
My 2 cents worth.
Jon
actually the comment was directed more towards foundation, who seems fixated on public displays of contempt for me. why? who knows. who cares. forums are often filled with people who are stupid enough to think if they make others look bad it makes them look good.
having said that, I thought Richards comment was inappropriate and implied my broker was incompetant and I was a fool for hiring them. And he never did explain what he meant.
I really dont see why there needs to be any negativity between posters here. We are all here to learn & help others.
Sí, es tristemente verdad que soy estúpido.
That aside, my post was a light-hearted parody of Hutch's earlier post. I even put in two smileys! As for public displays of contempt, I assure you, you have never featured in discussions on the house price crash forum. Others may have.
I clearly lacked tact when I pointed out the other day that constructing additional rooms on your house without a permit was a 'no-no'. I apologise.
Cheers, F. [cowboy2]
Ok we've all had a crack now. Fair game.
Let's funnel energy somewhere else I say.
What is the progress of crashy's original deal??two smileys also :] :]
Hutch
solicitor says he received new offer yesterday, but cover note says I have till 5pm Thurs. he says its a cunning trick to make me elect a day late.
but heres the bad news……mortgage broker suddenly out of contact. ye gods!
Hi all
New to the forum and PI. Find all this info very interesting. Differences of opinion are a good thing.
We learn from it all and thats why I joined today.What do I need to do to manage my own properties? Is it worth the hassle we both work full time and is it safer for our properties to be managed by professional PM's.
Cheers Nic
PS I understand Spanish!!
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