Why extended Settlement ?

[7DD4]

About to put an offer in. What are the benefits of extended settlement for both the seller and buyer ??

 

[Rob Williams]

Sometimes the seller needs more time to find or renovate a new property. Or the buyer might want more time to get their ducks in a row for a development project, or they just need time to sort out refinancing etc before settlement day.
I've never needed a long settlement. Never bought from a seller who wanted one, either.
In my personal expereince, many of my deals have presented well to the vendor because I always go unconditional and with the shortest settlement I can, usually 21 days, but 30 if I want some extra leeway.

 

[Nathan]

i always try get long as possible... why?

say its neg geared by 200pw
that means ur holding costs over say 20 weeks saving you $4k, but u buy @ todays $$ value

 

[boomtown]

Per above. The longer the settlement the less time you spend negatively geared (assuming the price is the same) as a buyer.

 

[Perchy]

Hi,

My current settlement is end of September, contract was in June - long settlement due to my clause "vacant posession" (tenant in place) - also it gave me time to get the 20% deposit.

 

[josko]

I was able to get a 6 month settlement on my last property. The longer the better for the Investor, no negative payments and fantastic at times of Capital Growth.

Regards Jo

 

[farmilor]

I've got a 90 day settlement on my current deal. Give us time to get quotes and supplies etc. organised for renovations to start as soon as we settle. Also negotiating with the current owner to get access before settlement to do some repairs and clearing of the land (which will benefit both)

 

[Aaron Sice]

a lot of WA properties have long settlements because of the "subject sale" clause - ie, takes forever to sell so they need forever to settle.

 

[silversands]

A friend of mine purchased a house in W.A 22 months ago. Settlement was for 6 months. By the time it settled it had exceeded purchase price in capital growth by $245k! Now I would say thats a pretty good reason to delay settlement as a purchaser - if market conditions are right!

Regards Jodie

 

[f4j]

I got two months on mine. Why?
Because I didn't want to pay rent and a mortgage concurrently so I wanted my lease to expire + time to move and make arrangements.

 

[Superstitionist]

I must say I have never thought about the benefit of long settlement, in fact, I always do the opposite, I would try to settle as early as possible if the condition allowed, as at the back of my mind, another voice keeps remind me that the property is still not mine, and anything can happen unless it has been settled...

Oh...time to re-adjust the mindset again...

Super.

 

[marg4000]

Length of settlement can be a useful bargaining tool.

Our son bought his present PPOR in Melbourne 2 years ago. It was exactly what they were looking for, and he negotiated an excellent price as the vendor was building a new home and in his offer my son included a delayed settlement so that the vendor could move straight into his new home when completed.

As my son was keeping his present PPOR and turning it into an IP, it merely delayed them moving.
Marg