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Property Sales Question

Discussion in 'The Buying & Selling Process' started by Blackmores, 16th Sep, 2016.

  1. Blackmores

    Blackmores Member

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    29th Sep, 2015
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    Location:
    Melbourne
    Hi guys, we have a buyer that is very interested in our off the plan townhouse development. They are good people so we are quite interested in selling to them. The problem is they are short of approx $30k (We are holding out for $1.13m and they can only push $1.1m and they love the property) and both sides have absolutely no room to move anymore.

    I was wondering if it is possible to work out something with them such as they can pay $110k deposit now, $990k on settlement date in April next year and the remaining $30k shortage 6 months after settlement or monthly installment.

    Is there something like that? Or is it just silly on my part as he could always default?

    Thanks.
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Yes it can be structured that way, but how will you enforce it if they dont pay?
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Caveat? Second mortgage?
     
  4. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    All good to have but how do you enforce it it payments to first mortgagee are up to date? Personal guarantee? Will cost more than $30k to collect on it
     
  5. Magoo

    Magoo Well-Known Member

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    If you think your townhouse will grow in value over the next 6 month then say goodbye to them, if your concerned about oversupply take the money and de done with it. Tight margins to be concerned about $30k
     
  6. Agent30yrs.

    Agent30yrs. Well-Known Member

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    A second mortgage could work, but for the risk, hassle and cost I would have to agree with @Magoo, just do the deal. If not for just peace of mind, you could chew up to 10 or 15k in marketing, interest etc if you had troubles finding another buyer .
     
  7. Blackmores

    Blackmores Member

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    Location:
    Melbourne
    Thanks guys, all good advises. I will keep them in mind. Just that i have already discounted quite a fair bit on the property and it is the cheapest one around with one of the highest specs that why I am hesitant to discount further. But I will have a think and make my decision.
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You just lend them the $30k. With or without interest. Take a second mortgage registered or equitable un registered. They can pay you back in installments over x years or in a lump sum at the end of the term.
     
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