Long Settlement and FHOG

[lostis]

Hi Guys,

Just wondering, is it possible to sell a property with the terms to Settle in say 6 months time?

How will this affect someone who is buying the property and wants to use the First Home Owners Grant?

The situation behind this is:

My mother would like to sell her IP but her fixed term doesn't end till October, now with the FHOG coming to an end I think we may not be able to get a "good price" for the property post June 30.

Is it possible to do what I've described?

 

[Learnings]

Date you sign the contract = how much you get.

Money is provided at settlement direct to the bank normally.

If its in the FHOG range you'll have no worries moving it.

+1 your worrying about nothing

 

[lostis]

Is there anything that could be perceived as illegal in doing this?

is this something that would cause us to have problems with the banks?

 

[Propertunity]

Is there anything that could be perceived as illegal in doing this?

No, nothing illegal with a delayed settlement - happens all the time for all sorts of reasons.

is this something that would cause us to have problems with the banks?

Not normally no. If it was a very long settlement they might want to re-val the property - could be a problem if the market drops significantly & / or the buyers are doing a high LVR borrow.

 

[lostis]

Not normally no. If it was a very long settlement they might want to re-val the property - could be a problem if the market drops significantly & / or the buyers are doing a high LVR borrow.

this would be an issue the purchasers would have to resolve right?

Sorry for the silly questions but I just want to be hundred percent sure before i kick this off.

 

[Propertunity]

this would be an issue the purchasers would have to resolve right?

Well No & Yes.
.
No, the bank valuer will just do the val. Nothing a purchaser can do about the outcome of that.

and Yes, the purchasers may have to tip in more cash if the re-val does not come up to the purchase price.

But this is only in the case of a long extended settlement - not just a month or two.