Purchasing Real Estate

CodeBuns
CodeBuns

I'm looking to escape the city bustle and purchase a little house out in the country.

I have enough money to buy it outright. Am I able to use this to my leverage? Do they prefer to avoid bank mortgages?

"I'd like to offer $450,000 - and i can pay the full amount in cash immediately."

Real estate is handled a little differently in AU as it is in USA (from my experience). In USA, you have a single real estate guy, who takes you around to see all the different houses. In Australia, each house is handled by a different company, and has representatives you contact if you are interested in the house. Also, housing is much more in demand in Australia, and things often go for much higher than listed, compared to USA, where they go for less.

Any tips for a first home buyer? Preferably from Australians with experience.

The listed price for the property is $400,000-450,000. Is it

SniperWish
SniperWish

Stay away, Aus is in a massive bubble

BlogWobbles
BlogWobbles

Get a studio apartment and put the other $445k in index funds. 5k being for rent, security deposit and some furnishings.

cum2soon
cum2soon

@SniperWish
I know, but i have a lot of money, and want SOME property.

I just want an answer to this;
I have enough money to buy it outright. Am I able to use this to my leverage?

idontknow
idontknow

@cum2soon

if you pay them cash

hairygrape
hairygrape

@idontknow
As opposed to what?

Deadlyinx
Deadlyinx

OP in a word: No.

The only advantage you offer as a cash buyer is a shorter closing time. As I seller I could care less if the money comes from a bank you borrowed it from or your savings account. I wouldn't accept a cent less just because you can get it to me 30 days faster. These are homes you're talking here. Not cars.

Methshot
Methshot

@CodeBuns
purchase a little house out in the country.
I'd like to offer $450,000
AU
You're willing to pay hundreds of thousands of dollars to live in a place full of these thing? I'm not even memeing, I saw a documentary about how wolf spiders crawl into people shoes in the country.

TreeEater
TreeEater

@Methshot
Ah forgot pic

FastChef
FastChef

@CodeBuns

I'm a Yank but I did exactly this. It's the best decision I've ever made. So much so I'm saving up to buy another property and then another and hopefully just keep putting it away and repeating until I'm sitting pretty.

Ignoramus
Ignoramus

@Deadlyinx
Wrong. Sellers prefer cash offers because there can be snags in financing a house. It's a lot of money. I've been beat by cash offers twice this month

Raving_Cute
Raving_Cute

Money talks motherfucker. If the buyer isn't motivated, they aren't going to accept a lower price just because it's cash. They get cash from the bank anyway.

Lunatick
Lunatick

@SniperWish
Aus real estate is actually reasonable solid. Majority of home loans are held by high income earners who can survive economic turbulence

Soft_member
Soft_member

@Lunatick
I don't think it's anywhere near as bad as US, but it's still pretty bad. We're long overdue for a bubble burst...

@Methshot
@TreeEater
What's so scary about spiders? I've lived in AU my whole life, and on my few trips to USA, i've seen far bigger spiders than i ever have in AU.

viagrandad
viagrandad

@Ignoramus
I'm not wrong. I've sold a home before.

A pre-approval letter from a bank was just as good as cash to me. Which is ultimately where the money came from in my case. That and most cash buyers low-balled themselves right out of a deal. Half of them I didn't even bother to counter they were so ridiculous.

As for being beat by cash offers, put in offers with 24 hours to respond. Your agent will argue with you but it cuts a lot of the bullshit and having your offer shopped around.

happy_sad
happy_sad

@Deadlyinx
Wrong. Paying in cash means your offer will not be conditional on selling your (current) home.

So yes paying in cash does have advantages.

iluvmen
iluvmen

@happy_sad
I've never received an offer with a contingency for the buyer selling their home first. If I did, it's likely I would have rejected it. So, you're right in that case.

Carnalpleasure
Carnalpleasure

@Ignoramus
@happy_sad
@viagrandad

I just bought a Melbourne townhouse and made an unconditional offer (I did get a mortgage, however. I was already pre-approved before I even started looking) with a 20% deposit, and I got the house for a little less than someone who offered a 10% deposit and subject to finance. The real estate agent still pushed for mine over the other person's, and the vendor chose my offer.

Then again the real estate agent had a vested interest as I offered to use their property management services for the house I already own, and the vendor was a huge bogan who didn't want to sell to asians.

TechHater
TechHater

@Carnalpleasure
Mind giving me some details on the townhouse?

What roads you on? How much did you pay? How big/nice is the place?

Dreamworx
Dreamworx

Why the fuck would you want to hand over a lump of cash instead of just paying the minimum intrest on a loan for the next 20 years. You could turn that 450 into 1.8 mil in 21 years with other property investments providing theyre good. Fuk idonundastan

Stark_Naked
Stark_Naked

You want to throw 1.8 down the toilet man go nuts

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