I have a 2br Brand New Townhouse in Werribee Vic that I desperately need to sell. I've come up with this idea and want to know what others might think.
Like I said, it's new and never lived in and I need to get $270,000 for it which is what it's worth. What I want to do is fund the person who buys it, 20% of the purchase price. So if someone can get an 80% ($216,000) loan, They can just pay off the other 20% ($54,000) to me over time.
It would mean they'd need no money to buy it, I'd just be loaning them the deposit they'd normally have to save up.
So as long as they can afford $445 a week in total payments, they could own this.
Does anyone think this will work? I'm guessing there might be a bunch of people who don't have a deposit saved up but want to own a home, or even investors who can buy this place for no money of their own going into it.
I just want to get rid of it so want to make it easy for someone to buy.
Any thoughts would be appreciated or how I might market this too. It kinda is free because someone doesn't need any money to buy it. So I might be able to go along those lines.
Thanks.propertypowerMember@propertypowerJoin Date: 2006Post Count: 312
With the market so strong at the moment, I would be surprised if you are not able to sell the property without offering 20% deposit. The question I have is – are you expecting bit too much for the townhouse?
May be you should consider dropping the price a bit.
But to answer your question, offering 20% deposit will make the purchase appealing to more people and therefore improves the chance for sale.
Thanks for your reply propertypower.
I figure if I make it easy for someone to buy by not needing a deposit, it should sell pretty quickly which is what i want to see happen.
If they have saved up something as a deposit, well, they can go buy new furniture or a car or something. Or i figure an investor can add to their portfolio without outlaying any cash which has got to be appealing for them.
I might throw an ad in the paper and see how something like this goes. I think it's a great deal for someone, so hopefully it gets snapped up real quick.Michael4Member@michael4Join Date: 2003Post Count: 70
I do not believe that your townhouse is worth $270k unless is one of those units that are amazing!
You need to affer it below 240k mark in order to ask for the fair price as most prices now are inflated in melbourne.
MichaelJames007Member@james007Join Date: 2007Post Count: 64
Not really a great deal for you having to put in $54,000 of your own money which will not be working for you at all how long do you expect someone to pay off $54000???.
A property rap would be a better idea, but like propertypower said its a strong market you should be able to sell it if your price is reasonable.
Thanks for your input guys.
Michael, are you from Werribee? Just wondering why you think it's not worth 270,000. Every other unit in the complex is selling for the same. By the way. It is a fantastic unit.
James, So if I'm leaving 54,000 of my money in the deal, you say it's not a good deal for me, yeah? So that would mean it's a good deal for the person buying it, right? That sounds great. That's exactly what I want. If it's a good deal for someone else, it should sell pretty quickly then. I'm very desperate to sell.
You asked how long i expect someone to pay off the 54,000. Well, i was thinking they could just pay me bank interest on the 54,000 and that i might be able to put in the paperwork that after 5 years, they pay me back whatever is left, if they haven't already done it earlier. That way in 5 years, the value has gone way up, they could just go refinance and pay me out the 54,000 i left behind.
I reckon this might just work.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
To make life a little bit easier, request that the first home buyer's bonus is given to yourself (reducing your exposure). Work out how much it will cost you to finance the deposit & weigh this against a lower selling price.
You will have to place a caveat over the property as well to ensure that you will get your money at the end of the day.
Lastly, get your solicitor's advice asap to make sure that you go down the right path.foundationMember@foundationJoin Date: 2005Post Count: 1,153
So how's it going? I noticed the advertisement:
Any quick offers or interest generated by your finance plan?
Cheers, F. [cowboy2]