10% deposit - auction

correct me if i'm wrong but to buy a 100 sqm property worth say 500K via auction, the liquid required would be:
  • 10% * 500,000 = 50,000 (10% deposit to agent).
  • 10% * 500,000 = 50,000 (10% deposit to the bank).
  • Stamp Duty Fee
  • Solicitor Fee

would that be accurate?
 
If you're aiming for an 80% loan then pretty much.

I'd budget another $2k on top for misc settlement expenses too such as rates/strata reimbursements if applicable.

Cheers

Jamie
 
Essentially correct if you want to avoid paying mortgage insurance. The figures you've described suggest an 80% loan.

You can borrow up to 90% of the purchase price fairly easily, and in certain circumstances you can borrow as much as 95%. In these scenarios you'll have to pay some mortgage insurance, this can often be added to the loan, but it's not always ideal.

Assuming there's no grants or stamp duty discounts available, and that stamp duty and purchase costs are about 5% of the purchase price, the absolute minimum you'd need is roughly 12% of the property value. The scenario described above comes to about 25% of the purchase price.

The exact figures depend a lot on the specifics of the scenario, such as:
* Is it an investment or owner occupied property
* Are you a first home buyer
* Do you have equity in other properties
 
correct me if i'm wrong but to buy a 100 sqm property worth say 500K via auction, the liquid required would be:
  • 10% * 500,000 = 50,000 (10% deposit to agent).
  • 10% * 500,000 = 50,000 (10% deposit to the bank).
  • Stamp Duty Fee
  • Solicitor Fee

would that be accurate?

I know someone will shoot me down but does the size of the property or the method of purchase (auction/private treaty) matter? Numbers will always be calculated the same?
 
Stamp duty is calculated on the value of the property transferred, so this will vary depending. 10% remains 10% regardless.
 
I don't know whether the vendor has signed or not, as we do not have visibility of that.

All we know is that we have signed and have paid 10% deposit and put in 66W.

I understand vendor may not have sign hence contract exchange has not happen as yet.

From those scenarios above:

  • Open Inspection still scheduled for tomorrow morning; is this acceptable? shouldn't this be taken off the market, as "under offer" ?
 
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