Hi,
We are about to make an offer on our first IP. We have submitted our documents to our broker to get pre-approval but that will take around 3 weeks, according to the broker. We are confident of our ability to secure the loan but obviously need to reassure the vendor with the wording of our offer.
This is what my offer looks like currently:
1)Price $202,000
Deposit $3,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 30 Days from contract becoming unconditional
2) Price $204,000
Deposit $2,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 60 days from contract becoming unconditional
2) Price $206,000
Deposit $1,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 90 days from contract becoming unconditional
1) Offer is subject to satisfactory building inspection, to be arranged by the purchaser within 14 days from the date of sale. If the purchaser deems the building inspection report to be unsatisfactory, the purchaser may rescind this contract and all moneys are to be refunded to the purchaser.
2) Subject to a satisfactory pest inspection, to be arranged by the purchaser within 14 days from the date of sale. If the purchaser deems the pest inspection report to be unsatisfactory, the purchaser may rescind this contract and all moneys are to be refunded o the purchaser.
3) Subject to the purchaser obtaining final approval within 21 days from the date of sale of loan amount not less the full-agreed purchase price. If the purchaser’s mortgage broker (Care Finance) does not gain unconditional approval of the loan amount within the 21 day period then the purchaser may rescind this contract and all moneys are to be refunded to the purchaser.
These offers are open for acceptance by your vendor for 24 hours, closing at Wednesday 29th April 2009 at 5pm.
We are aware that the vendor wants a quick settlement and we are not fussed either way. That is why we have structured our offer as such. Just wondering what you think about it - pro's and con's of this letter.
Also, at what point do we offer a holding deposit - at the time of making the offer?? What sort of deposit should we offer? Is my letter suggesting we would, then, make another extra financial commitment (as outlined above) when we get unconditional approval. I'm getting a bit confused by the process, as you can tell.
My mortgage broker suggested three weeks for approval but I'm wondering if this is called pre-approval, not approval. Does approval only come after you've had pre-approval and then you forward further documentation for approval. I guess my question is, are they two separate process - pre-approval and approval - and how do I capture this in our letter of offer.
Should I mention any deposit in my letter of offer?
Another unrelated question, but how do we find out the original cost of the building to work out depreciation? The house is 20 years old and I can't find the building cost listed anywhere on the Sec 32 (Vic). When I read about the first five years of a building's life being the best for depreciation is that because it's when it's being calculated in 'current' dollars - rather than this house, which may have only cost around $60,000 to build (guessing) - and therefore have lower depreciation benefits in today's money??? Is it worth using a quantity surveyor on a 20 year old property - or do I just use my accountant to work it out?
Thanks for your feedback, in advance.
newlywed1311
We are about to make an offer on our first IP. We have submitted our documents to our broker to get pre-approval but that will take around 3 weeks, according to the broker. We are confident of our ability to secure the loan but obviously need to reassure the vendor with the wording of our offer.
This is what my offer looks like currently:
1)Price $202,000
Deposit $3,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 30 Days from contract becoming unconditional
2) Price $204,000
Deposit $2,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 60 days from contract becoming unconditional
2) Price $206,000
Deposit $1,000.00 *transferable to your Trust Account on contract becoming unconditional.
Settlement 90 days from contract becoming unconditional
1) Offer is subject to satisfactory building inspection, to be arranged by the purchaser within 14 days from the date of sale. If the purchaser deems the building inspection report to be unsatisfactory, the purchaser may rescind this contract and all moneys are to be refunded to the purchaser.
2) Subject to a satisfactory pest inspection, to be arranged by the purchaser within 14 days from the date of sale. If the purchaser deems the pest inspection report to be unsatisfactory, the purchaser may rescind this contract and all moneys are to be refunded o the purchaser.
3) Subject to the purchaser obtaining final approval within 21 days from the date of sale of loan amount not less the full-agreed purchase price. If the purchaser’s mortgage broker (Care Finance) does not gain unconditional approval of the loan amount within the 21 day period then the purchaser may rescind this contract and all moneys are to be refunded to the purchaser.
These offers are open for acceptance by your vendor for 24 hours, closing at Wednesday 29th April 2009 at 5pm.
We are aware that the vendor wants a quick settlement and we are not fussed either way. That is why we have structured our offer as such. Just wondering what you think about it - pro's and con's of this letter.
Also, at what point do we offer a holding deposit - at the time of making the offer?? What sort of deposit should we offer? Is my letter suggesting we would, then, make another extra financial commitment (as outlined above) when we get unconditional approval. I'm getting a bit confused by the process, as you can tell.
My mortgage broker suggested three weeks for approval but I'm wondering if this is called pre-approval, not approval. Does approval only come after you've had pre-approval and then you forward further documentation for approval. I guess my question is, are they two separate process - pre-approval and approval - and how do I capture this in our letter of offer.
Should I mention any deposit in my letter of offer?
Another unrelated question, but how do we find out the original cost of the building to work out depreciation? The house is 20 years old and I can't find the building cost listed anywhere on the Sec 32 (Vic). When I read about the first five years of a building's life being the best for depreciation is that because it's when it's being calculated in 'current' dollars - rather than this house, which may have only cost around $60,000 to build (guessing) - and therefore have lower depreciation benefits in today's money??? Is it worth using a quantity surveyor on a 20 year old property - or do I just use my accountant to work it out?
Thanks for your feedback, in advance.
newlywed1311