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Buying property from a family friend

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  1. #11

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    Does seller own property 100% already with no mortgage of their own? Otherwise they can't sell it to you without repaying their own mortgage.

    Lending money between friends is one thing, but a property is something that will normally take you 20-30 years to repay. How much deposit you are putting down and over how many years you expect to be able to repay? Are you sure you can enter into such a long term agreement like this?

    Last edited by bdw; 27-04-2022 at 12:01 PM.

  2. #12

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    Quote Originally Posted by bdw:
    Does seller own property 100% already with no mortgage of their own? Otherwise they can't sell it to you without repaying their own mortgage.

    Lending money between friends in one thing, but a property is something that will normally take you 20-30 years to repay. How much deposit you are putting down and over how many years you expect to be able to repay? Are you sure you can enter into such a long term agreement like this?
    Fully owned. The owner has a FEW village houses lol. I am just looking to buy one unit/floor.

    Id love to enter a long agreement with FIXED rates. But this is just my wants, it would have to be agreed upon. I guess 20-30% downpayment.

  3. #13

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    Quote Originally Posted by D.YU:
    I would not go into an agreement if the title is not transferred at time of downpayment/signing. I guess things can go wrong and theres a level of "trust" since its almost like a transaction between family.
    Similarly on their side, they probably wouldn't want to give up full title until you've paid off either, so probably a sticking point. I imagine the scale of this loan is too ambitious and messy to do as a completely private arrangement.
    JAherbert likes this.

  4. #14

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    When it comes to this sort of money, I would not trust 'family' or 'family friends'. Make sure you are completely protected.


  5. #15

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    Quote Originally Posted by chobochobo:
    When it comes to this sort of money, I would not trust 'family' or 'family friends'. Make sure you are completely protected.
    or just avoid altogether imo
    TheBrit and JAherbert like this.

  6. #16

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    Quote Originally Posted by foxwendal:
    Similarly on their side, they probably wouldn't want to give up full title until you've paid off either, so probably a sticking point. I imagine the scale of this loan is too ambitious and messy to do as a completely private arrangement.
    In the scenario the buyer fails to make payment, the seller can take back the home through legal actions. Meaning buyer defaults the downpayment and all payments paid. Isnt this risk scenario a GAIN for the seller?

  7. #17

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    Original Post Deleted
    lol chill. This is prelim discussion on a message board.

  8. #18

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    vendor financing is not as uncommon as people think, but mostly between very sophisticated parties who do not need to go to a forum to ask what is the risk...

    and also, the arrangement would not normally be 20-30 years long

    hike likes this.

  9. #19

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    Quote Originally Posted by chobochobo:
    When it comes to this sort of money, I would not trust 'family' or 'family friends'. Make sure you are completely protected.
    I 'loaned' the money for my son to buy a flat -full amount. (in UK) In law I gave him the money. I've asked him to pay a sum back monthly and add a nominal interest amount. I'll be dead before it's repaid. I guess I shouldn't have trusted him...he'll probably cance! the monthly payments soon. I'm buggered!

  10. #20

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    Quote Originally Posted by D.YU:
    In the scenario the buyer fails to make payment, the seller can take back the home through legal actions. Meaning buyer defaults the downpayment and all payments paid. Isnt this risk scenario a GAIN for the seller?
    If you've got full title upfront, what secures the house for them against your other debts/bankruptcy? What stops you from selling the home, leaving HK with the proceeds and all they've got is your 20% downpayment?