No Deposit Required

[Lofty]

Hi All

Here’s an opportunity to pick up a great property without having to put down a deposit.

We will finance 13% of the purchase price, INTEREST FREE for five years. If you can get an 87% loan, we will carry back $92,300 for five years, interest free.

Your costs to get into this beautiful property are Stamp Duty & Legals.

Purchase Price = $710,000
87% loan = $617,700

This property overlooks Secret Bay on Lake Macquarie and will rent for approximatley $550 per week.

4 bedrooms
4 Bathrooms
Triple Garage
Rumpus and large living areas

You can view photos at:
http://www.y-rent.net/rathmines.html

Thanks.

Cheers, Paul

 

[JoannaK]

how about some more detail on why this would make a great investment.

the caveat emptor forum is not just about "advertising", it's about the discussion and merits of particular investment opportunities.

you'll probably find you'll get a better response too.

 

[Lofty]

Hi All

Sorry about that. As an IP it would be heavily negitatively geared so it's not for everyone.

However $92,300 interest free, over five years may help to overcome that pain, along with the capital gain potential associated with the property's views, size and neighbourhood. Thanks.

Cheers, Paul

 

[The Y-man]

Lofty,

How big's the plot of land?

Cheers,

The Y-man

 

[Lofty]

Hi Y-man

705 sq mts

Cheers, Paul

 

[The Y-man]

Couple of questions:

What is the interest on the $92.3k after the fifth year?

Can it be paid out during the interest free period with no penalty?

Is the $92.3 k secured against the property? If so what mortagage arrangement will the bank have on this security?


Cheers,

The Y-man

 

[Lofty]

G'day Y-Man

The $92.3K loan will be limited to 5 years, interest free, i.e. at the end of the term, $92.3K will be payable to the seller.

Yes the loan can be paid out during the interest free period with no penalty.

The $93.2K loan will be in the form of a second mortgage to the seller, secured by a caveat on the property, i.e. it will not be a registered second mortgage, requiring a Deed or Priority.

Cheers, Paul

 

[Belu]

Lofty, as you say, this is a heavily neg geared property.

May I ask why you are selling it if your signature says:

"negative2positive
Turn your negatively geared property to positive cash flow."

Thanks

Ben

 

[Dazz]

As an IP it would be heavily negitatively geared so it's not for everyone.

I've got a suggestion - why not drop the asking price back to a more reasonable $ 450K....then it won't be so heavily negatively geared.

Then of course the yield will appeal to a wider audience and you'll have a much greater chance of selling it.

See - property finance isn't that difficult - it's quite simple really !!

 

[Lofty]

Hi Ben

Thanks for reminding me to update my signature ;-)

Cheers, Paul

 

[grossreal]

hi lofty
to me this is not that great a deal
but I can give you a better deal
35% vendor finance for 5 years signed but not registered second mortgage onthe property.
no interest for the 5 years with the ability of the investor to take out a 85% loan on the property and has 20% of the property available in a loc.
any increase in the value after 5 years after you take out holding cost is split 50/50 with then vendors and fall is carried by the investor.
the 35% is classed as vendor finance back.
now is the above a better deal.
it is to me and happy to look at it on these terms
the above is no money down but also cash available.
and thats alot better deal in this market.
I can bring down if need to repayments to cover the loan or increase as I wish.
now you could say noone will go with that deal.
well a couple of vendors already have and so have there solicitors.
oh and I don't discount the price the price is the valution price done by the banks valuer so we get true value ( well thats not really true as I have a good idea before I sign anyway).
just a couple of ideas for you

 

[Bill.L]

Hi all,

Joanna, you beat me.

Lofty, I do not consider your answer, as to why this would be a good investment , acceptable.

Why would this property have capital growth, given the current credit crunch???

What makes this a better investment than a cheaper area in a cap city (say Brissy)???

How does this compare to other properties in the same area??? What makes it a better deal than others??? (other than vendor finance for a small part of the price)???

bye

 

[Belu]

Hi Ben

Thanks for reminding me to update my signature ;-)

Cheers, Paul

Paul does this mean you have changed your business approach now? Are there no positive cashflow properties?

 

[Lofty]

G'day Ben

Nope still plenty of those left. Maybe I'll have to change our signature again to something like:

"Residential Real Estate Vendor Financiers
via negative2positive, No Deposit Properties, Rent To Own, Seller Financed Homes, etc, etc"

What do you think ;-)

Cheers, Paul

 

[Bon]

in Rathmines? I don't see much CG potential there...

 

[Belu]

Hi Paul,

As this is vendor finance and you are running a business by doing it - can I ask what value there is in going with you if you clearly don't have a clear business plan/direction?

What assurance do I have that you will still be here in 5 years or still have the same conditions in place?

Cheers

Ben

 

[Lofty]

Hi Ben

The purchaser gets an 87% first mortgage. Therefore the title of the property,transfers to the new owner. This is not an offer that involves an Instalment Sales Contract or a Lease/Option. The title transfers to the new owner at settlement, say approx 42 days.

We are left with a 2nd mortgage that we are supplying interest free for 5 years, secured by a caveat.

Cheers, Paul

 

[Bill.L]

Hi all,

Lofty, you have been able to reply to this thread a couple of times, but have not answered why this property would be a good investment.

How is this not spam, if you will not answer simple questions??

bye

 

[redsquash]

Whats the address?
How many sq Metres is the house ?
When was it built?
What capital growth has there been in this street in the last 10 years?

Hi All

Here’s an opportunity to pick up a great property without having to put down a deposit.

We will finance 13% of the purchase price, INTEREST FREE for five years. If you can get an 87% loan, we will carry back $92,300 for five years, interest free.

Your costs to get into this beautiful property are Stamp Duty & Legals.

Purchase Price = $710,000
87% loan = $617,700

This property overlooks Secret Bay on Lake Macquarie and will rent for approximatley $550 per week.

4 bedrooms
4 Bathrooms
Triple Garage
Rumpus and large living areas

You can view photos at:
http://www.y-rent.net/rathmines.html

Thanks.

Cheers, Paul

 

[Dazz]

Agreed, forget the fancy footwork on the finance.....tell us about the dirt and the box on it.