Need some advice in selling property

[TonyY]

Hi guys,

I'll state the figures first. My loan owing is $340k the market value of my property is $410k. I bought the property 3 years ago for $355k the loan used to be $320k but I used $20k of its equity.

I want to sell my house because I'm quite desperate for some cash as I have a so called business idea/plan and I need 50k cash to go on with my dreams. Now at this point It's hard for me to save up that much money as I'm 22 years old and honestly I'm struggling paying off the mortgage repayments let alone saving $$$

I was wondering if there was any possible way for a buyer to give me $50k in cash and reduce that money from the selling price? Or really is there no need for any of this? Also what happens if I ended up selling the property less than what I owe? What would the bank do then? Do I still continue paying off the remainder of the loan? Or does the bank take something off me?

 

[TonyY]

Furthermore I just need advice on using my property to acquire some cash.

 

[thepeoplesagent]

Hi guys,

I was wondering if there was any possible way for a buyer to give me $50k in cash and reduce that money from the selling price? Or really is there no need for any of this?

Easier to just wait till settlement. You will cut your target market into shreds if you try to find a buyer with 50k cash. You can always ask for a quicker settlement or ask for the 10% deposit to be released on exchange. However, it’s probably not worth losing a buyer over. Especially in today’s market.

Also what happens if I ended up selling the property less than what I owe? What would the bank do then? Do I still continue paying off the remainder of the loan? Or does the bank take something off me?

If there is a balance owing the bank will sometimes get a valuer to value the property. This way, they know your achieving a fair market value. For example, they won’t let you sell the property for $200,000. And yes, you will have to continue paying of the balance of the loan.

 

[Scott No Mates]

Albeit at personal loan rates as it is no longer secured by property nor might it be tax deductible.

 

[wobbycarly]

Hi guys,

I'll state the figures first. My loan owing is $340k the market value of my property is $410k. I bought the property 3 years ago for $355k the loan used to be $320k but I used $20k of its equity.

I want to sell my house because I'm quite desperate for some cash as I have a so called business idea/plan and I need 50k cash to go on with my dreams. Now at this point It's hard for me to save up that much money as I'm 22 years old and honestly I'm struggling paying off the mortgage repayments let alone saving $$$

I was wondering if there was any possible way for a buyer to give me $50k in cash and reduce that money from the selling price? Or really is there no need for any of this? Also what happens if I ended up selling the property less than what I owe? What would the bank do then? Do I still continue paying off the remainder of the loan? Or does the bank take something off me?

You could potentially borrow against the increased value of the property, but if you're already 'struggling with repayments', then it might be better to sell. You haven't mentioned whether this is an IP or PPOR; that might sway the decision.

 

[CHAOS]

How good is your business idea / plan. Will it not be successful if you waited 12mths. Can you address why you are struggling to pay the mortgage at present - not earning enough, spending too much? What did you spend the 20k on?

Why do I ask this - if you are struggling now and the first 20k equity is gone. How long will the 50k last. If it is your PPOR then you will have to rent or live with parents. How much extra $ will actually be in you pocket.
- and there will be nothing to sell when that is gone.

 

[Jake Milne]

Hi Tony,

I do Vendor Advocacy which is a free service to somebody who is selling a property. Essentially I act as an unbiased advisor that guides you through a sale.

With that being said I'm siding slightly with CHAOS here; in that selling really might not be the best option; and in saying that I'm probably leaning towards you keeping what may be a good asset as opposed to risking 50k on a business (when 80% of them fail) and then being left with nothing.

If you're interested in sitting down for a no-obligation consultation we can look at your options fairly though and make a decision on that basis.

For transparency purposes if we do meet I'd like us to post the results here so somersoft can be assured that our decision is solely in your best interest, which it will be.