Forums / Property Investing / Creative Investing / Settlement terms – Buying time

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  • Profile photo of Double KoronaDouble Korona
    Participant
    @orlando75
    Join Date: 2015
    Post Count: 3

    I haven’t got much expertise in this topic. Could anyone help me with the following?

    1) What is an unconditional settlement term?
    2) What is considered a short settlement term?
    3) What is the maximum settlement term that can be negotiated?
    4) In a seller’s market, what tactics can be applied for delaying settlement?

    Profile photo of EthanEthan
    Participant
    @ethan2015
    Join Date: 2015
    Post Count: 7

    I haven’t got much expertise in this topic. Could anyone help me with the following?

    Happy to help (not an expert advice)

    1) What is an unconditional settlement term?

    It’s the time period between when all conditions set at the exchange has been fulfilled to the settlement.

    2) What is considered a short settlement term?

    Anything under 30 days, I guess.

    3) What is the maximum settlement term that can be negotiated?

    No such limit as far as I know. Vendor Finance, for example, can easily last even 25 years.

    4) In a seller’s market, what tactics can be applied for delaying settlement?

    Depends on the vendor’s needs, I guess. Solutions could be around higher purchase price and/or interest paid on balance.

    Hope this helps?

    Merry Xmas!
    Ethan

    Ethan | Terrapodean - Make Home Happen
    http://www.terrapodean.com.au
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    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Generally the shorter end is 30 days, with most falling on 42-45 day settlements. It’s not that uncommon for some purchases to be upwards of 90 days in the owner occupier market especially.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

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