Hi Investors,
I inspected a couple of properties this week and I have my eye on a couple which I will be making an offer on. I have a couple of questions:
1) What are the standard deposit amounts/procedure? Ie. I've heard 0.025% straight away after offer is accepted, 10% (or 20% since I'm avoiding LMI) after cooling off period and then full amount upon settlement? Is that right?
2) Since I will be emailing my offer, does anyone have any tips? Like putting in my terms and conditions.
My broker is currently sorting out my lending application, 2 lenders are happy to lend to me. I'm getting itchy feet and want to make an offer ASAP but since I don't have approval just yet, I'm thinking should I just wait or stipulate something in my email?
Thank you
1) Yep thats right. You can try for a 5% depoist at cooling off just so you can have more money in your account
2) I would personally call them and than send an email to confirm your offer, I find its easier to haggle over the phone. Make sure you mention negative aspects about the property before you put the offer in. Good luck
You can ask for subject to finance if you think it will sell soon
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
The Dark Knight wrote:1) Yep thats right. You can try for a 5% depoist at cooling off just so you can have more money in your account2) I would personally call them and than send an email to confirm your offer, I find its easier to haggle over the phone. Make sure you mention negative aspects about the property before you put the offer in. Good luck
You can ask for subject to finance if you think it will sell soon
Ok thanks!
oh, so if I gave only 5% after cooling off, wouldn't that incur LMI? Or have I got that wrong and that's only on settlement (20/80) ?
Hiya
You won't get "formal" finance approval until you've had an offer accepted on the property and your broker arranges a loan for the particular property you're purchasing.
Like DK said – you'll need to make your offer subject to finance and your broker will then arrange your loan after your offer has been accepted.
LMI is triggered when you borrow more than 80% of the purchase price. It doesn't matter how much you pay as an initial deposit – it matters how much you borrow at settlement.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi,
Just my 2 cents, for my properties, I wrote, 'Subject to xyz finance and satisfactory report of property & pest inspection…this offer expires on dd/mm/yy, time'. I'm sure others may have more ideas. Good luck.
Cheers
Christine
I also make my my offers subject to finance and subject to inspection results that are satisfactory. I'd also put an expiry date on the offer, perhaps 7 days after your offer, so that it gives them a sense of urgency
mattsta wrote:7 days after your offer, so that it gives them a sense of urgencyI'd shorten that by heaps – probably keep it valid for 48 hours so it really provides a sense of urgency.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
We submit for our clients a full offer including purchase price, deposit, settlement date and all terms and conditions etc.
Never leave your offer on the table too long.
Also why do you want to avoid LMI ?
It is an opportunity cost and gives you flexibility for the next IP.
Your Broker should be advising you on these matters.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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