Selling IP - 50% now and %05 after 6 months

[viphar]

I have an IP for sale and have been offered the price that I am happy about. The only catch is that the buyer will pay 50% deposit now which sits in Trust A/C with no interest and 50% after 6 months. The only advantage I have is that I still get the rent for that 6 months. The reason he wants to do this way is because he has put his IP on for sale and might take him 6 months. Also my IP is in a much better area for future growth.

Any advise is welcome and thanks in advance

Viphar

 

[viphar]

Sorry typo error. It should read 50% now and 50% after 6 months.

Thanks

Viphar

 

[DavidMc]

What will happen in 6 months if he can't sell his place?

 

[viphar]

As the contract has been signed with 50% deposit, he loses that deposit so it is in his best interest to buy my IP.

Viphar

 

[GoAnna!]

Unless that arrangement also suited the seller I would have thought a premium in price would be fair. Or do you feel that has already been factored in?

 

[viphar]

Thanks. No the premium factor has not been factored in as I have also had an offer from a cash buyer which I might consider if the price is right.

 

[Nathan]

i was ganna ask what are you going to do with the other 45%? but you corrected it

 

[DavidMc]

As long as the contracts are all nice and tight and you are happy with the price prima facie it's a good deal.

 

[boods99]

Viphar,
What is the market like in the area? Is it rising/falling/steady?
Boods

 

[Novar]

Bet the RE is pee'd off .. he/she will have to wait 6 mths for 1/2 commission.

In a slow market sounds like a good deal to me IF it's water tight.

 

[The Y-man]

Sounds quite generous. I hve heard of people doing 6 months settlement on only 10% deposit, so this is way better than that. Try putting in for a early release of deposit regardless - the RE nor buyer has nothing to gain by haing the money in the trust account, as ong as the contract is signed.

Cheers,

The Y-man

 

[boomtown]

Get a property lawyer to sign off on the contract.

 

[Ana]

You can usually organise to get the deposit released early. I have done this a number of times when the settlement has been longer then 30 days (it takes about 30 days to process so not worth doing if less then that). Ask the realestate agent to provide you with the relevant form. It just has to be filled in and signed by both yourself and the seller. If you organise to get your deposit released early, still only pay the realestate agent only 50% of their fee as their job is not finished until the deal is comleted.

Wishing you every success,

Ana

 

[viphar]

Market here is not bad compared to other parts of Australia. This suburb is good as there is great potentail in future. Also not too many properties for sale in this suburb.

Viphar

 

[viphar]

Thanks Ana for this useful info. Appreciate all your responses

Viphar