Rent house for year then own it?

Get legal advice.

 

I have been working 2nd job for 2 months but bank cant use that for 4 more months. (2 banks have said this).

So with 2nd job and extra 5k of savings i would be all good they said but need to wait the 6 months.

 

Appreciating help here. i will call vendor at lunch and see if i can get it in writing today to share.

 

This is all open to negotiation.

 

Finance will be difficult because the banks will not generally accept that you have paid $20k deposit in this situation. You will still only be able to get finance on the lessor of the value or the purchase price.

 

Isn't the general consensus here that its very risky with little benefit to you? Ie. Don't do it?

 

Yeah 80% of advice is dont do it but am getting advice elsehwere too including solicitor now.

SPoke to vendor at lunch and highly likely wont go through with it.


Has made another offer to me...he will take house of market for 6 months as long as i give him 10k depsoit, and buy house in 6 months when approved by bank for 360k (now why would i do that)?
If not approved or i change mind i lose 10k

 

I would avoid this as well. Just stick to your guns. Clearly the seller is desperate whether you feel like he is, or not. His behaviour screams desperate and/or questionable. 330k conditional on finance with a bank. Just stick with it. Keep it simple and clean.

 

And for goodness sake, hand the seller no money. Deposit should be in a trust account. Talk to your solicitor.

 

How long can a purchase contract be? Can a sales contract be signed with a settlement date in 2019? Subject to finance in 330 days type thing.
Then in the interim period you can lease wherever you like and if this happens to be the place you intend purchasing set up a rental agreement?
I have no idea if contracts can be set like this though.

 

The settlement date can be whatever date is mutually agreed by both parties and their solicitors.


not legal advice

 

30 years potentially - or longer.

 

Why don't you just offer them $350k with a 6 month settlement? That way you can get finance in 5 months time after you have done enough time in your job

 

Because we wanted to move in there asap and not have the family in 3 houses in 6 months....buts its an option.

 

Wouldn't there be a risk that you won't get finance in six months? Given the sellers behaviour my concern is that they do not want to sell anyway. I'm suspicious of anyone that wants cash up front, not in a trust account and handled correctly. If it was me, I would look for another house.

 

CBA 3months for casual

 

I have felt this the last few days. He has lived there for 25 years (and built it himself). seems like he dioesnt want to let it go.

 

He has dropped sale price to 370k for us.
Has offered (vendor Finance)
37k (10 per cent deposit) in trust fund at solicitor.
Live at house for 12 months at 400 a week at normal interest rates.
Then settlement in 12 months to pay remainder.....if we dont get approved by bank by then, we lose 37k deposit.

Likely to decline.
Thoughts. fair or not?

 

Could be good for you if the property is worth more than the contract price at settlement.
Bad if it drops in value, or if you cannot get finance, or if he refuses to settle in 12 months.

 

no it wont drop. It will be the same i reckon.