Buying a property cash

Hi All
I have posted this in the finance section but maybe someone can help here.

I am looking at placing an offer on property today, vendor needs to sell urgently. I get the impression from RE agent that I could pick this up for a song, I am trying to buy prior to auction.

Looking at using my cash from LOC, then later get finance for the property.

How does this work, first time I have looked at purchasing outright using all my own funds. Do you double dip with stamp duty, are there any issues I need to be aware of????

Thanks

Cheers, MTR
 
There shouldn't be any double stamp duty unless you are changing onwer/entity details down the track. Getting a loan aginst the new purchase, doesn't attract a change of ownership.

If you have adequate purchasing (and closing) funds with the LOC, after settlement (or before if you have the leisure of long terms) you can refinance the asset just purchased to use it as security along more favourable LVR's to you and your lender.

It is a strong position to be in if you are given decent discount for unconditional finance when negotiating with the seller.
 
Is this for PPOR or investment?
As far as I know LOC is for investment purchases only,

Is this why you want to get a loan later on a lower interest rate?:confused:
This could have complications tax wise,:(

Otherwise you can get an awesome bargain with a cash buy,
Make sure you offer very low then you can always go up:D
 
can only get cheaper if you pay cash at the fruit shop :)

Settling the deal within 7 days however is a good way to get cheaper :)
 
Thanks all for help.
Yes, I am trying to secure property for $100K under market/real value. The seller is desperate and settlement asap is the key to securing property.

It also comes with a bonus, dual income, neutral to hold and good location, it is close to a major capital city and university. Will let u know how I go, sounds too good to be true, but u just don't know your luck.

Cheers, MTR
 
Hey MTR,

Another plus of not needing finance is not having to wait for the banks. Talk to your solicitor about offering a 14-21 day settlement instead of the standard 30 days. This might get you an even lower price if the seller wants out ASAP.

Edit: Sorry, Nathan already suggested a 7-day settlement :eek: Personally, 21 days is the shortest I've done so far, and that was with finance.

-Ian
 
100k under value dual income and still neutral? Who's value is that?
I doubt your values are correct, unless it's 100k under bank valuation.
 
100k under value dual income and still neutral? Who's value is that?
I doubt your values are correct, unless it's 100k under bank valuation.


Its based on my own research and would not be interested in the property if I could not get it at a heavily reduced price, would only be shooting myself in the foot.

I looked at previous sales on Street, land content, size of property, improvements.

I also managed to get RE agent from different company to look at it for me and he came in at higher figure than I had estimated.

I am still waiting patiently to see whether I have a chance of securing this.

Will keep you all posted.

Cheers, MTR
 
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My offer was rejected.

The vendor wants to go to auction.

What I have been able to establish is that the vendor is in financial difficulties and the property will be repossessed by the bank and must be sold on the auction date.

Apparently there have been many home opens but mainly FHB who can not go unconditional (cash).

The RE agent has told me not to place a higher offer on the table yet and just wait as I am in the box seat at the moment and he would let me know if there were any other cash offers that come in. Otherwise I will be going to auction to try to pick up a bargain.

Now that's a RE agent working for the vendor :(

Cheers, MTR
 
Remain familiar

My offer was rejected.

The vendor wants to go to auction.

What I have been able to establish is that the vendor is in financial difficulties and the property will be repossessed by the bank and must be sold on the auction date.

Apparently there have been many home opens but mainly FHB who can not go unconditional (cash).

The RE agent has told me not to place a higher offer on the table yet and just wait as I am in the box seat at the moment and he would let me know if there were any other cash offers that come in. Otherwise I will be going to auction to try to pick up a bargain.

Now that's a RE agent working for the vendor :(

Cheers, MTR



Stick to the rea like Louie the Fly.

Remain familiar to them. Whilst he/she may not appear to be working too hard for the vendor.......never take their word that they'll let you know of other offers. They might and then again they might not.

The latter case may involve them working harder for a family member buyer....cousin, uncle, in-law etc.

If you're keen and know you can buy well......keep yourself fresh in their memory by asking if there are any other suitable properties (or whatever excuse you want to use) and throw the "by the way how's that property (you're interested) going".

Don't appear too desperate, although having read your posts I am certain you would not get emotional and over-pay for any IP's, however don't let them forget about you. Jog the rea's memory occasionally :)

You don't even have to call.....use email to suss out proceedings.

Good luck MTR
 
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