Purchase with a credit card

Has anyone ever purchased property using a credit card? Or at least put down a large deposit with one? At the moment my card limit is $35,000, so that would provide a few free miles.

I keep coming up against a brick wall here in Perth - the general consensus is that using a credit card is a no-no as there must be an exchange of a cheque for the deed at the bank.

I'd love to hear from anyone who has successfully pulled this off - and if there are any previous threads on this subject I'd love to know about them. ;)

Thanks!
 
doesn't seem likely you'll have any luck with a REA accepting a credit card payment.....

re flybys, i used to be happy to do 'reimbursements' with my employer.... i.e. i would buy on my credit card lots of new IT gear for the company {$50k worth over a year}, and get reimbursed within the week. {I started as a contractor and was put on as a full time staff member.}

try and buy your next car on a card...
 
You may not be able to use a credit card directly- it may be possible to use a cash advance to contribute towards a depost though. (At 20%+ pa you would want to pay it off quickly though).

And you would need a savings record, with a saved deposit, to be approved by at least some lenders.
 
geoff, i thought of the cash advance line but a lot of cards now have a high cash advance establishment fee (%) for large amounts... last year i was taking out $30k cash advances to lend to a start up business with cash flow problems... risky I knnow.....but the risk/reward ratio worked out ok.

plus i don't think you get free miles for cash advances....flybys are loyalty points aren't they?
 
tfb,
Know you do bobcat/excavating stuff. Have heard of ppl doing great profit deals importing 2nd hnd excavating mach. from JPN and reselling here. Have you heard of such stuff?
ab
 
You'd have to check each card on cash advance rules.

A friend has used CCs to contribute towards establishment expenses (NOT a big proportion).

MrsW, as a travel agent, has had customers insisting that they use threir credit card (at 1.5% surcharge) to get extra points- which probably were worth less than .5% of the amount spent.
 
ab, we bought a used 7 ton excavator in July imported from Japan by Willtrac in Rocklea, Brisbane. Yes I understand they do alright out of it, and it is common practice now. Lots of car engines are also imported from Japan into Oz.

We paid 35k. Ringing around for quotes had put them above $50k.
We haggled the price down by taking it 'as is'. it ended up having a problem with the electrics which cost $500, and the tracks kept slipping off after the first week which cost another $1500 to overhaul the track hydraulics.
 
Hi Itinerantotter,

I have certainly used cc for all the associated fees such as stamp duty, initial offer deposit etc etc, but cant say that I've used it for an actual bank deposit.

I recall somewhere in the dungeons of my mind about being told that I couldn't use credit to pay credit. Can someone shed a little more light on this?
 
Thank you all for your input. Not too sure about the heavy machinery though!!

My cards don't give points for cash advances unfortunately.

Actually it's my better half who wants to do this, but because I'm the one who takes care of business in our partnership he's giving me a hard time about finding a way.

So, in a way I'm looking for reasons NOT to do it :rolleyes: - so any more advice from that point of view would be really appreciated! I'm certainly not a negative person. It just sounds like a nightmare to me! :eek:

Thanks!
 
I did a cash advance from an ATM or over the counter to pay a bill only to be charged around $15 I think for a $2000 transaction. I then discovered if I transferred the amount from my cc to my bank account over internet it was only .50 c. A big saving!!! Then just wrote a cheque from my account. You're right. You don't get flybys from advances only purchases.
 
low interest cc

There are low-interest credit cards out there in the 9.95-10.95% range. I've got two in case I need them. Useful for parking little purchases and or property related expenses.

Jireh
 
quintets said:
There are low-interest credit cards out there in the 9.95-10.95% range. I've got two in case I need them. Useful for parking little purchases and or property related expenses.

Jireh

But do you get points for anything?? That's the object of our exercise.

Cheers
 
itinerantotter said:
But do you get points for anything?? That's the object of our exercise.

Remember that there is nothing for free in this world. Cards that pay points actually cost more - the users pay for the privilege of earning points. Each point actually has a dollar value associated with it - and if someone converts points to something like Qantas FF miles - then there is actually money changing hands too (between the card provider and Qantas !).

The only way you can really make points work for you is if you don't even carry a balance on your credit card (or you use a charge card). If you ever get to the point of paying interest on your card - the value of the points you earn will be quickly diminished by the interest you are paying on the money.

Charge card which don't actually charge interest are a trap too when more and more retailers are starting to charge extra for you to use something like an Amex card (because it costs them so much to offer that service).

There are some good ways to earn points on credit cards, but you have to look at the bigger picture to make sure you are actually better off overall.

A free flight is not free when you've had to pay interest on the money you spent to earn those points.
 
Sim said:
The only way you can really make points work for you is if you don't even carry a balance on your credit card (or you use a charge card). If you ever get to the point of paying interest on your card - the value of the points you earn will be quickly diminished by the interest you are paying on the money.

I pay for everything I possibly can on my credit card, including renovations, new plant and services for my properties. Then I pay it in total at the end of the month - I'm lucky to have the cash flow to be able to do that.

So, what I need to find out is how to channel approved funds through my credit card to make a house purchase - it may be necessary to do it in several stages (which is why it sounds like a nightmare to me!). Finding traders to accept such a payment is the main stumbling block, followed by the fees they would necessarily charge.

I'm about to try it on a project home I'm building - as long the charges are not prohibitive it will be simple, as the progress payments are in manageable chunks.

Aiyoh!!!!! :(
 
itinerantotter said:
I pay for everything I possibly can on my credit card, including renovations, new plant and services for my properties. Then I pay it in total at the end of the month - I'm lucky to have the cash flow to be able to do that.

Ahh - that's different then, and exactly what I do.

The banks must hate people like us ! :D
 
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