Hiya All
Apologies if this question has been raised before; I seek advice on something we have not done before.
The situation
Venturing into our 6th IP (5 WA, I ACT) but this one is buying an apartment in East Perth (no siree, not one of those pool/gym/sauna high rises) off-the-plan.
The Problem
Need to raise $57K for a deposit by 22/9 - 30 days.
Developer wants us to go Unconditional after 30 days.
Have not approached bank yet as we are already settling on IP # 5 in approximately 6 weeks time.
Excellent location opposite Queens Garden in new EP Precinct getting developed near Trinity College.
Can raise the deposit through a Guarantee, courtesy Deposit Power; however, cost is around $5K.
Our Strategy
To sell before settlement on this one, approx Jan 2009 (Sunset Clause is 30 months from Contract) or settle on it by off-loading a 'poor-performing' IP in our portfolio, depending on how much we can make.
Already $15K ahead, as this is how much the developer has bumped up the price to the public.
The Question
Do you think it is 'worthwhile' to take the risk of going Unconditional without finance on the premise that the property will appreciate (significantly) before completion?
Remember, I will have to pay Stamp Duty (approx $25k) even if I on-sell!
Just some random brain-storming would help.
Many Thanks,
Lizard King
Apologies if this question has been raised before; I seek advice on something we have not done before.
The situation
Venturing into our 6th IP (5 WA, I ACT) but this one is buying an apartment in East Perth (no siree, not one of those pool/gym/sauna high rises) off-the-plan.
The Problem
Need to raise $57K for a deposit by 22/9 - 30 days.
Developer wants us to go Unconditional after 30 days.
Have not approached bank yet as we are already settling on IP # 5 in approximately 6 weeks time.
Excellent location opposite Queens Garden in new EP Precinct getting developed near Trinity College.
Can raise the deposit through a Guarantee, courtesy Deposit Power; however, cost is around $5K.
Our Strategy
To sell before settlement on this one, approx Jan 2009 (Sunset Clause is 30 months from Contract) or settle on it by off-loading a 'poor-performing' IP in our portfolio, depending on how much we can make.
Already $15K ahead, as this is how much the developer has bumped up the price to the public.
The Question
Do you think it is 'worthwhile' to take the risk of going Unconditional without finance on the premise that the property will appreciate (significantly) before completion?
Remember, I will have to pay Stamp Duty (approx $25k) even if I on-sell!
Just some random brain-storming would help.
Many Thanks,
Lizard King
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