Long Settlement, anything to be aware of?

I have an opportunity to buy my first investment property today. It is "off market" but have been told if I match what I offered for next door (unsuccessfully) I can have it.

Only catch is that the owners aren't ready to move, they apparently saw the sale next door and thought if they could catch the under bidder they could have a no hassle sale.

They want settlement at the end of July... any issues to be aware of?

I have discovered I may have to hold off applying for finance because the valuation only lasts 3 months... anything else?

 

I have had NAB do 4 months from valuation to settlement before. But I haven't explored longer settlement than that before.

 

Most lenders will allow it to go out to at least 6 months. I've seen some (off the plan) deals where settlement was 8 months after the finance was approved.

I've also seen vendors rent the property they sold because they're not quite ready to move.

 

Maybe explore having the settlement earlier and renting it to the vendors until they're ready to move.

 

just make sure you have 10% deposit and all good. If its in Melb, valuation should not be an issue.

 

In Queensland (I see you're in Melb so possibly different, worth checking out), Stamp duty has to be paid within 5-6 weeks of contract date, nomatter what the settlement date. Your solicitor or conveyance team should be able to provide this info.

 

Totally agree.

@MondeoMan, you need to check out when S/D has to be paid. You wouldn't be the first one who had to pay it way before settlement.

 

not so in Melb