Vendor financing the stamp duty.... how does this play out?

Discussion in 'Property Finance' started by Paterson00, 2nd Sep, 2015.

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  1. Paterson00

    Paterson00 Well-Known Member

    19th Jun, 2015
    Perth WA
    Hi all,

    I am very much an amateur but have listened to lots of pod casts and audio books etc so know a few principles.I tried applying one as an offer on a property recently whereby I asked the vendor if they would be interested in a situation where they lend us the cash for the stamp duty ( or thereabouts) so that we could, hopefully get the finance to complete a purchase of their property.

    I was tempted to ask as it is a high price, $765k, has been on the market for over a year as there is a restriction on the area and I know that the seller does not even live in the property, they have another city pad and this is simply sitting empty surplus to requirements so I thought it would be worth a shot.

    The response I received was that they had spoken with their solicitor who had advised them that they would become second mortgagee's should they decide to go down this path and as a result they withdrew any interest at all.

    This would not be a purchase so much as an investment property, more so a place to live where we could also generate an income from the property as it has features that suit my wife's business although I know if we present it as a business purchase the deposit will be far far higher and push us off the table instantly anyway. Domestic would be the only way to go here.

    My question is that, was the advice received by the solicitor correct? I have not heard this before so was surprised.

    Thanks in advance and have a great day,