I would wait till you've had your first proper 'open for inspection'. Who knows, someone might walk in tomorrow and fall in love with the place.
About time to open that wine, I reckon.
About time to open that wine, I reckon.
Bought before selling...what to do???
- Thread starter pennyc
- Start date
My suggestion is as follows
Top up NAB loan to 80% of value on current property.
Assume Value of $520k *.8 = $416k current debt $315k gives you $101k.
On the new purchase get a loan for 80% of value get an interest only loan with ANZ or Bankwest etc.
That would be
Purchase Price $635k
Stamps legal etc $37k
Cost Of buying $672,000
Loan at 80% = $508k ( Split $408k and $100k)
Deposit Paid $63.5k
Top up Nab $100.5k
Total Funds Avail $672,000
If all goes well and your property sells on time you never sign the docs on the Nab top-up and that loan not taken. At settlement you place the proceeds of sale say $200k as follows. $100k into completing the settlement at 80% and the other off $100k paying the $100k loan down to zero. You start paying interest on the $408k loan which is owner occupied but have access to the other $100k later on for investment purposes should you choose to use it ( and why wouldn't you) and it is set up properly for tax purposes.
If your property doesn't sell and settle in time you take the NAb loan and once it is sold you repay the $416k and pay down that $100k split as above.
You end up either way with an owner occupier loan of $408k and $100k on the side for investment and can relax knowing if settlement does not overlap you will still be fine.
Cheers and goodluck
Top up NAB loan to 80% of value on current property.
Assume Value of $520k *.8 = $416k current debt $315k gives you $101k.
On the new purchase get a loan for 80% of value get an interest only loan with ANZ or Bankwest etc.
That would be
Purchase Price $635k
Stamps legal etc $37k
Cost Of buying $672,000
Loan at 80% = $508k ( Split $408k and $100k)
Deposit Paid $63.5k
Top up Nab $100.5k
Total Funds Avail $672,000
If all goes well and your property sells on time you never sign the docs on the Nab top-up and that loan not taken. At settlement you place the proceeds of sale say $200k as follows. $100k into completing the settlement at 80% and the other off $100k paying the $100k loan down to zero. You start paying interest on the $408k loan which is owner occupied but have access to the other $100k later on for investment purposes should you choose to use it ( and why wouldn't you) and it is set up properly for tax purposes.
If your property doesn't sell and settle in time you take the NAb loan and once it is sold you repay the $416k and pay down that $100k split as above.
You end up either way with an owner occupier loan of $408k and $100k on the side for investment and can relax knowing if settlement does not overlap you will still be fine.
Cheers and goodluck
Wrong question Bigtone - the question on everyone's mind here is: how much for the place that is being sold - then go in with the super low offer to settle on the same day as new one.....
The Y-man
ps. Don't worry PennyC, we're not that mean.
... I think....Wrong question Bigtone - the question on everyone's mind here is: how much for the place that is being sold - then go in with the super low offer to settle on the same day as new one.....
The Y-man
ps. Don't worry PennyC, we're not that mean.
yes good call, the closer to settlement the lower the offer
I don't think they won"t do it, but a few people who have been in this situation lately that i know of had to pay for the privilege.
The bankers seem to know when they can leverage their weight over an urgent need for $$ and always found ways to extort a few K's out of them when it was was too late to do it any other way.
Low valuations, servicability, short term interest etc etc.
They buyer than has a choice of a few more weeks wages for the honour, or no deal.
Which is no choice at all. So try and get something sorted yesterday imo.
In control? lol Think again...
