Paing 'Cash' for IP

From: Andrew S


I am REALLY new to this whole concept and have been spending time increasing my "financial intelligence". I my reading I have read that vendors are more likely to accept my offer to purchase their property if it is to be a 'cash' purchase.

It might be a silly question, but what does this mean. We all need to obtain finance in the early stages don't we? Am I missing something?

Please contribute to my financial intelligence...

Regards
AndyRoo
 
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Reply: 1
From: Asy .


Hi Andrew,

A cash purchase is one which is not 'subject to finance', you will still have a loan, but may be pre-approved, etc.

Well that's my definition anyway, others may have other ideas!

Hope this helps!

Larysa
 
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Reply: 1.1
From: Andrew S


Thanks Asyral

I thought there must be some logical way of explaining the phrase. I thank you for your fast response.

You will hear more from me as I post many more questions...

Andrew
 
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Reply: 1.1.1
From: Paul Zagoridis


Cash also means that there is no way you can't pay for the property.

The implication is that the bank's valuation is irrelevant because you have a LOC or Cash or sufficient other ready finance to settle quickly without waiting for bank processes.

Paul Zag
Dreamspinner
 
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Reply: 1.1.1.1
From: Andrew S


Thanks for the reply Paul.

I have money accessible in my own home equity, but the balance will come from a financier. Is there any way that this could be considered a cash transaction? If I read the reply correctly, I would need to have the 'banks' approval before I made such an offer.

Regards

Andrew

"Cash also means that there is no way you can't pay for the property.

The implication is that the bank's valuation is irrelevant because you have a LOC or Cash or sufficient other ready finance to settle quickly without waiting for bank processes.

Paul Zag
Dreamspinner"
 
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Reply: 1.1.1.1.1
From: Jude H


Hi Andrew,

I have just purchased a property for 'cash'. I have used equity from a LOC and then taken a new mortgage for the balance. I was aware that my current financial situation was able to support this cash contract so did not have pre approval. To do it without pre approval though you had better know your figures.

Jude
 
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Reply: 1.1.1.1.1.1
From: Andrew S


So I take it that there is a definite legal obligation when making an offer for cash?
 
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Reply: 1.1.1.1.1.1.1
From: Paul Zagoridis


There is a legal obligation when you make any offer. Contract law -- an offer is on the table until rejected or withdrawn.

Therefore use the cash price offers as a bargaining tool. But most vendors won't take your offer seriously until you offer a deposit and exchange.

Paul Zag
Dreamspinner
 
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Reply: 1.1.1.1.1.1.1.1
From: Andrew S


Thanks Paul, I think that has well and truly answered my questions....Next topic...

Regards
Andrew
 
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Reply: 1.1.1.1.1.1.2
From: Jeanette .


I don't know what state you're in but in NSW, section 54 of the Conveyancing Act says that contracts for the sale of land must be in writing. Any verbal agreements don't mean anything. That's why there is a problem with gazumping in NSW - because vendors can say they'll accept your offer and turn around and sell to a another person because there was nothing in writing.
 
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