Could someone PLEASE tell me what the deposit is for a home? I have searched and searched and cannot get a straight answer. I have asked real estate agents in my home town & still cannot get a straight answer. it seems you can have a deposit as little as 3% - I thought the deposit was 10%, somone told me it was 20%, but the internet says all sorts of rates. Mostly the notes use 10%.
Plese help.
Regards
Paula.
Hi Paula,
Industry standard is 10%, but you can offer a variance on this depending on the terms of your offer. You could offer a higher percentage to make a more attractive offer, or offer a lower percentage if you need to reserve some working capital.
It comes down to the terms of your offer that will work for you to allow you to purchase a particular property and meet the needs of the vendor making them more likely to accept the offer.
Hope that helps.
Regards,
Rob
Thanks Rob. That certainly does help.
Regards
Paula.
I've been on the net, & the calculations for balloon payments is way over my head. Can anyone please explain how I calculate the balloon payment that Ben would have to pay in the vendor finance deal? I have worked out the payments over 30 years, but I've got so confused trying to work out how to calculate the balloon amount. I got the answer by using a balloon calculator on the net, but I'm sure that's not what I'm suposed to do - or is it?
From
Paula.
Hi Paula,
I assume you're asking this question because Part Two of the assignment says you need to assume "Ben pays his maximum deposit". I don't think that means the typical maximum deposit for the home; Ben only has $20,000 for a deposit, therefore that's his maximum deposit and that's what should be used in your calcs.
Cheers
Dash