Hi, I am new to this forum and could do with some help.
I am purchasing the upper part of a duplex as an investment. Finance in place, all progressing smoothly. Both duplexes (2 bed up, 1 bed down) are currently owned by the same person. 1 bedder also on market but is not selling due to current layout not being the best.
I am interested in purchasing the 1 bedder as well but am not in a position to get finance at the moment. Would it be a good idea to approach the vendor re the possibility of vendor finance? In the long term there are many advantages of owning both duplexes - the main one being the possibility of turning it back into a 3 or 4 bedroom home. Currently rents are high & stable in his area so getting a tenant into the 1 bedder to cover the repayments to the vendor is not an issue. As a deposit for this place is my issue, I am wondering what people think of a vendor finance proposal whereby I agree to purchase the property for their current asking price in 3 years (current asking price is about 10% over value) & monthly repayments based on 1% above the standard variable mortgage rate?
Any thoughts/ideas?
I am purchasing the upper part of a duplex as an investment. Finance in place, all progressing smoothly. Both duplexes (2 bed up, 1 bed down) are currently owned by the same person. 1 bedder also on market but is not selling due to current layout not being the best.
I am interested in purchasing the 1 bedder as well but am not in a position to get finance at the moment. Would it be a good idea to approach the vendor re the possibility of vendor finance? In the long term there are many advantages of owning both duplexes - the main one being the possibility of turning it back into a 3 or 4 bedroom home. Currently rents are high & stable in his area so getting a tenant into the 1 bedder to cover the repayments to the vendor is not an issue. As a deposit for this place is my issue, I am wondering what people think of a vendor finance proposal whereby I agree to purchase the property for their current asking price in 3 years (current asking price is about 10% over value) & monthly repayments based on 1% above the standard variable mortgage rate?
Any thoughts/ideas?