Finance Options

Trades Considered:

We will consider "trading" real estate or other assets  as part of the purchase price. 

Up to 100% finance available on some lots to qualifying purchasers.

This is currently available through us on Lots 11 and 12. However, by using our mortgage broker, or yours, we should be able to help you arrange first mortgage finance externally and we are happy to lend on 2nd mortgage at a reasonable rate. This latter system gives us financing flexibility on most lots.
"Qualifying purchasers" means you need to be able to convince us that you have sufficient uncommitted income to service the debt.

Options

If you want to get a commitment out of us to sell at today's prices, but prefer not to commit yourself to the purchase at this stage, and/or you don't have a deposit to put on the property, this may be worth your consideration.
In fact, about one third of the "Silverstream Falls" lots were sold, long before titles issued, under similar "Option Agreements".
Intending purchasers secured their properties at the then valuation figures, by paying us monthly payments calculated at the bank interest rates at the time, based on the purchase price. At the end of the agreed period, they could either:

(1) Convert their total payments made towards the deposit on their chosen property. (Some switched their choice during the payment period).
OR
(2) Walk away from their potential purchase and sacrifice their non refundable payments. (No-one did this and suffered any loss).
(3) If values had decreased over the period, they could renegotiate the purchase price with us. (All values went up and not down so no-one did this either).

THIS DEAL IS STILL AVAILABLE ON SOME LOTS.

The intending purchasers have the use of the property in the meantime as long as they pay rates and maintenance in addition to the monthly instalments. Absentee purchasers pay nothing more than the monthly instalments.
The "Option" route leaves you free to change your mind without notice if, for any reason, you choose not to go ahead with your purchase.

Example of an option agreement on lot 12 - bold heading

Purchase price: $399,000

Term of option agreement: 12 months (this will vary depending on what is agreed with the vendor)

Interest rate: 6% (this will vary depending on what the market bank interest rate is at the time the agreement is made)

Option payment / month: $1995 ($399,000 x 6% / 12 months = $1995 / month)

At the end of the 12 month option agreement, should you choose to exercise the option and buy the property, you will have paid $23,940 towards the purchase price and the remaining balance will be $375,060.

Finance may also be pre-arranged with the vendor for when the option agreement ends, subject to lending criteria being met.

There is no doubt that if a new Silverstream Falls was to be started now, it would take at least 5 years to construct and deliver titles, and the cost would far exceed today's selling prices.

To discuss finance and ownership options, contact the managing director of Professional Contractors Limited:

PETER KENDALL. +64 (0) 21 942 146
EMAIL: pkendall33@ihug.co.nz

Peter is an Associate of the Institute of Bankers (U.K.) and has practiced as a mortgage broker in New Zealand. He spends part of the week in Tairua and the rest in Auckland and can call to see you in either location.

Please contact us for further information

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