Hi Guys,
This is my first post so I apologise if its a little longwinded.
A greater force was in action again when I discovered Steve’s book. After reading many real estate investing books by American authors and having everyone I know say ‘but you cant do that in Australia’ I was elated to discover that someone in Australia had put all those principals Ive read about into action.
Ive just about finished Steves book, and am trying to work out which niche would suit me best to start my investments.
Has anyone had any experience in flipping off the plan purhases? I’m thinking that this is the way I would like to progress. Any feedback good or bad would be greatly appreciated.
Look forward to hearing from you soon [
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GuccigalThis strategy was very good a few years ago. Some people became millionaires over night. I think things have changed now, and it could be a very dangerous strategy at this point of time.
In my job as a mortgage broker, I have seen a few disasters. One client purchased off the plan 2 years ago and when it came time to settle recently, the place had actually dropped slightly in price. The person only earned a small income and could not qualify for a loan. She wrote to the developer asking to be let out of the contract, to which she was told settle of be sued. She used a deposit bond for the deposit, so will probably be sued for the 10% deposit (at least).
On the other hand, one of my clients has made a few million $ within a year but buying off the plan.
Just be very careful and have back up plans.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
gucci,
Welcome to the Forum
Your post didn’t seem long-winded at all!As Terry said- the flipping OTP was “so two years ago!* as far as property fashion goes ;O) Definitely something that most property invcestors would not consider now- too risky, unless you decide you can afford to settle in case it doesn’t sell.
Terry- a quick question- I thought deposit bonds only required one to pay a few hundred of the full price of the property- not 10% ?
kay henry
‘flipping OTP was “so two years ago!* as far as property fashion goes ;O)’ hahaha, im guessing thats in relation to my screen name [
]Regarding deposit bonds, they only cost a few hundred dollars (worked out on a percentage basis) however if you dont/cant settle, you are still liable for the 10% deposit.
‘There is only one success – to be able to spend your life in your own way.’
Why not flip land. It is hard to find, everyone wants it. Watch your bank balance grow!
If you know of any, got plenty of buyers.Hi Picja1
Where are you located? I have seen heaps of land for sale, however I’m not sure it would be as easy to flip land, and would of course be location dependant and Im assuming it would need to be underpriced? (however I may be totally wrong, my experience and knowledge isnt in land itself.)
Would love to hear more about your suggestion. Are you a real estate agent?
‘There is only one success – to be able to spend your life in your own way.’
Guccigal
If you have experience in the development process, in terms of selling/acquiring holdings OTP, then I would recommend investigating projects in New Zealand where apartments in particular are being turned over several times before construction is completed. Many buyers originate in Australia.
However, as picja1 suggested, land would likely be the better and more profitable option. It would also be less risky.
Kay Henry – an upfront deposit of 10-15% is becoming the standard when acquiring OTP. For example, we require a 15% deposit [in Australia/New Zealand] which is retained if the buyer does not settle, as is any shortfall/costs we incur onselling the property to another buyer.
— Michael
I’m situated in QLD, however have associates that are Nation wide.
Location definately applies.
QLD- Bris,Gold Coast, Sunshine Coast, Mackay – Bowen, Rockhampton,Yeppoon Toowoomba Townsville.
NSW- Coffs Harbour*, Northern NSW, Wagga WaggaLook for not only residental blocks, but also large land parcels for development and unit townhouse sites.
It doesn’t have to be underpriced, but priced well, as land is hard to find for most people in certain locations (there are 2 yr waiting lists in some locations).
I’m a finance broker, working with a real estate chain.
Quote:hi g i bought off the plans a block of land 77grand and sold it 97 8 weeks later. real estate agent/taxes will take half my profits .also dont get paid until july after settlement.this was pretty easy money for my fist investment now do i go out and form a trust or invest individually im certanly learning cheers great forums tooHi beerboy
Good work for your first deal! I hope I have as much success. Do you mind me asking where you bought?
‘There is only one success – to be able to spend your life in your own way.’
The strategy is like beerboy said. However, once you are in the game and start to know a few people you can flip unlimited. Some guys out there are flipping a min 200 res blocks a week. There are some developers just flipping development sites to other developers, these guys are making millions on deals. But it is just simple flips, that’s all they do.
Half the time, don’t even need deposits. You have a long term settlement and due dillegence period, within this time you on sell and take their deposit.
You don’t need an agent either to sell (well, once your in the game, you won’t want one)as they will take the commision.
Quote:hi gucci i bought the block in margaret river w.a this place is going nuts land prices have doubled over the past 2 years. i am in the process of doing another flip.land prices seem to peaking so i may even build and sell it as ppr.prices here are to high for p/cashflow but great for capital gains.later
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