Multiple purchase discounts

From: Land Holdings


I have a question for anyone willing to give it a go.

I have just been approved to take out an investment home loan for around 200k. I am looking to buy high yield properties and have found 3 suitable houses that would give me a nice rental return of around 9%. All up they would be worth 200k so I would be well within budget. I haven't asked my bank if this is okay, has anyone had any experience of buying multiple properties at once?

I haven't approached the Real estate agent as yet but I was wondering if I was within my 'rights' to ask for a discount of say 15%-20% if I buy all three from them at once. (Same settlement date and everything)

What have been other people's experiences? Are there any risks involved? Could I then ask for a discount to look after them as rentals since they have 3 properties?

All suggestions are most welcome.

LH.
 
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Reply: 1
From: Ian Findlay


Hi LH,

Q1. Can't see the bank being too bothered as long as the valuations come in
OK and they get first mortgage.
Q2. Why not? The RE will only refer it back to their clients. With possible
commission on three they should put more pressure on the buyer.

Ian


>
> I have a question for anyone willing to give it a go.
>
> I have just been approved to take out an investment home loan for around
200k. I am looking to buy high yield properties and have found 3 suitable
houses that would give me a nice rental return of around 9%. All up they
would be worth 200k so I would be well within budget. I haven't asked my
bank if this is okay, has anyone had any experience of buying multiple
properties at once?
>
> I haven't approached the Real estate agent as yet but I was wondering if I
was within my 'rights' to ask for a discount of say 15%-20% if I buy all
three from them at once. (Same settlement date and everything)
>
> What have been other people's experiences? Are there any risks involved?
Could I then ask for a discount to look after them as rentals since they
have 3 properties?
>
> All suggestions are most welcome.
>
> LH.
>
>
>
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> To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
> To login: http://bne003w.webcentral.com.au:80/~wb013
>
 
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Reply: 2
From: The Wife


LH<

Yes, yes and yes! GO for it :eek:)

You might be told no, but you definitely wont get it, if you dont ask for it.

Feel the power of bulk buying :eek:)

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1
From: J Parker


LH- you will definitely get a discount on the property management side of things- dont' be afraid to negotiate and good luck! Cheers, Jacque :)
 
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Reply: 2.1.1
From: B F


Watch out for the stamp duty. With the same purchaser/vendor and properties in the same street, they may accuse you of deliberately splitting titles to avoid stamp duty. (2x200 is less stamp duty than one 400 deal)

I had that experience in Adelaide 4 years ago. After 12 months the crown solicitor found in my favour and I was eligible to have the extra stamp duty refunded. The difficult part was being asked for the extra $1400 on the settlement day. I just managed to scrape it up, so that settlement could proceed.

Regards

BF
 
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