Not subject to finance..

Discussion in 'The Buying & Selling Process' started by Frosty123, 7th Apr, 2019.

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  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
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    Location:
    VIC
    Hi all,

    I'm about to put an offer in for a new PPOR property.
    I feel the price I am offering (if I am successful) is a good buy (around 5% less than other similar properties on a similar sized block that have sold in the past 3 months)

    I will have over 50% deposit, and no issue from a serviceability point of view, so I plan on putting in an offer with NO subject to finance condition.
    My only concern is how the bank will value the property. The house is very run down, and it is my intention to knock it down and rebuild soon after settlement.

    How could I feel confident that the bank will lend me the money from their valuation perspective?
     
    Frosty123, 7th Apr, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Rely on the cooling off period to get the Val done
     
    Terry_w, 7th Apr, 2019
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Location:
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    if your serviceability doesnt need rental income from the IP, then you would typically be fine at a 50 % lvr

    Unless you are stuck with one lender, this valuer, you may have other options to boot

    ta
    rolf
     
    Rolf Latham, 7th Apr, 2019
    #3
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Rolf is right. plenty of room for a low val.

    imagine $400k purchase with $200k loan needed.
    If the val comes in at $250k you would still be at 80% LVR
     
    Terry_w, 7th Apr, 2019
    #4
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  5. Stoffo

    Stoffo Well-Known Member

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    I have recently made an unconditional offer :D
    (It was a low low ball, being unconditional can save you many thousands, and the vendor time and worry )

    tbh it is stressful knowing you don't have an out clause :oops:
    Akin to byers remorse :p

    You will breeze it in @Frosty123 , relax :cool:
     
    Stoffo, 8th Apr, 2019
    #5
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