We have received the following update for the Rita apartments at 14-18 Bent Street, Bentleigh.
We are excited to advise everyone that construction at Rita is progressing ahead of schedule, with Xerri Group, the builders at Rita, advising that completion is expected early June and settlement is now anticipated to occur mid-June 2017. We will keep you updated on progress as we lead up to settlement.
Funding Strategy for Your Apartment
In this current global financial environment, it is imperative to understand your funding options and assess your individual needs prior to seeking formal approval from a financier. Having a strategy in place will enable you to streamline the bank approval process and ensure that you are well prepared in a time when banks are limiting their lending exposure on new apartment funding.
If you have not already done so, we recommend you contact a finance broker immediately to ensure you are prepared well before settlement. Please let us know if you require recommendations for a broker and we will forward on contact details to you.
Strict Lending Criteria – Banks are being increasingly cautious as to who and how they lend their money. For example, other developers have reported recent incidents where buyers have not met the strict criteria set by their bank and have been forced to top up their lines of credit by gearing against other assets they own or inputting more cash. This is another good reason to start planning now.
Longer Approval Process – Funding approvals are taking longer due to the meticulous approval process of many banks. Different requirements from bank to bank are causing confusion and bank policy on lending is continually changing which only adds to the timeframe.
Conservative Valuations – The conservative nature of funding institutions is also seeing pressure placed on valuers. In some instances this is resulting in downward pressure on valuations, requiring purchasers to use more of their equity to ensure they can complete their settlement. Purchasers need to prepare financially for this possibility.
Transfer of Funds – Foreign purchasers
Transferring funds from overseas to Australia can be an arduous process and can sometimes take several months, especially if there are limits on transfer amounts. Once a request for a transfer is lodged, some foreign banks may hold the funds for days before actually commencing the transfer.
It is also important sufficient funds are transferred, more than enough to cover all outgoings that will be included in your Statement of Adjustments (the document which outlines your final amount owing). As the Statement of Adjustments cannot be confirmed until a few days before settlement, we highly recommend any funds requiring transfer are made based on an estimated amount confirmed by your legal representative several months before Titles are registered.
Please speak to your legal representative and/or financier in regards to transferring funds into an Australian bank account and/or your legal representative’s trust account, if required.
Late Settlement Penalties
Once settlement has been triggered you will have 14 days to settle your apartment (unless otherwise stated in your contract of sale). If you do not settle on time you are liable for significant penalty charges, amounting to hundreds of dollars a day. Your legal representative will be able to advise you further regarding your contractual obligations.
Should your bank require a bank valuation to be done, we are expecting that we will have access to site for valuers from May. We will advise everyone once a date has been confirmed by the builders.
Don’t forget to place your window furnishing order with the team at Lovelight, if you have not already done so.
Due to popular demand, Lovelight have been able to extend the cut off period required for orders to be ready for installation at settlement until May 19, 2017. To save a further 5%, place your order online at www.lovelight.com.au/rita prior to May 19, 2017 and use the following log in details:
See attached letter of offer for more information or contact the team at Lovelight on 1300 763 171 or at firstname.lastname@example.org.
Lovelight Quotation -RITA Apartments
Should you have any queries regarding your apartment leading up to settlement, please do not hesitate to contact the Settlement Team via email@example.com or on the following mobile numbers:
Tania Buttigieg – 0434 347 663
Natalie Hanrahan – 0408 444 271