PPOR Contract Price

Soon I will start looking for our PPOR.
I have been told that it would benefit me if I can have the written contract price 50K to 150K over the actual price paid, providing the Vendor is OK with it.
From what I understand this will allow me to lend alot more LVR wise to the point where I may not have to put any cash of my own in.
Is there anyone with experience of this? Would the contract price co-erse a bank valuer to up his valuation closer to that of the contract?

Ragards

Matt
 
Matt,

Not something that I have done but I have read about it.

Basically you include a reference to the terms and conditions of Attachment 'A" within the contract. Attachment 'A' includes a price reduction if payment is received by a given date.

If you go unconditional and then have trouble settling you would end up owing the full amount stated on the contract.

There are plenty of legitimate benefits to property ownership without pursuing dodgy financing plans.

Regards

Andrew
 
matt-t said:
Soon I will start looking for our PPOR.
I have been told that it would benefit me if I can have the written contract price 50K to 150K over the actual price paid, providing the Vendor is OK with it.
From what I understand this will allow me to lend alot more LVR wise to the point where I may not have to put any cash of my own in.
Is there anyone with experience of this? Would the contract price co-erse a bank valuer to up his valuation closer to that of the contract?

Ragards

Matt

Matt

Yes, I'd steer well clear of going down that route.

Not only can it bight you now but it will also definitely efect your credit rating and put a halt to any future Portfolio building plans you have.
 
if you want to make 20% value very quickly, you have 2 options, both are better than lying to the bank.

1 - negotiate a price that is 20% under market
2 - add 20% value through rennovation, development or change of use

both of these will need you to put 20% in at first, but you could then refinance and get it back quite quickly
 
1 - negotiate a price that is 20% under market
2 - add 20% value through rennovation, development or change of use

This is the more logical and honest way.
and definitely more feasible according to Aussie John.

I don`t think I could gamble on the integrity of the Vendor keeping their word also.


Thanks for the advice and comments.


Matt
 
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