Off The Plan.
Ie. buying before the development is finished.
‘Eat rich food, barbeque a yuppie’ [greedy]
OTP = off the plan.
Fraught with danger they say…..
oh. k. no difinitely not off the plan. we managed to persuade the developer to release one of the two units he was securing for himself. but it turns out dads finance wasnt the soundest.
Andrew R Curtis
Rugby – you beat me by 1 min. The property may be yours.
At $200k its a bargain. The naturestrips are worth more in Hampton.
however, imho this one may have payed off. [were it off the plan]
but then again im not professing to know much about that sort of thing.
Andrew R Curtis
Why dont you just refinance? Go to another bank. Or see a mortgage broker?
Is it Hampton or East Hampton?
If it’s an area of good CG, why not look at going into partnership with a friend or relative.
I don’t know Hampton well but is sounds like a nice area.
I would exhaust all avenues before selling it.
‘Eat rich food, barbeque a yuppie’ [greedy]
harbinger said:
“expected rent is approx $270-280 for similar in area. definitely not +cf.”
Well, it is CF+ if I buy it off you for $130k, harbinger!! [thumbsupanim][thumbsupanim]
Must cost a fortune if it rents for that much [glum2]
kay henry
the problem which has was not aluded to during the process was that is was 100% financed. equal doses of ignorance [dad and myself] and blatant deception [other guy]
no refinace is going to solve that.
Andrew R Curtis
ok we are all looking at our ‘where is it’ map!
Kay your offer just took a backward step!Elves
Originally posted by Rugbyfan:If it’s an area of good CG, why not look at going into partnership with a friend or relative.
I don’t know Hampton well but is sounds like a nice area.
I would exhaust all avenues before selling it.
‘Eat rich food, barbeque a yuppie’ [greedy]
could you elaborate? did you have something in mind? how could a partnership help? do you mean ease the -Geared aspect?
We need to change the debt/equity ratios i think. does that sound right? or sell. i would love to be able to hold it but we got 2nd property at the same time which we would prefer to keep.
Andrew R Curtis
how did you finance?
line of credit?
P and I?
you might be able to restructure rather than refinanceline of credit for deposit.
fixed interest only for first 5 years, then var, 25 yr mortgage.
[ i think. dad was the only person in the loop for that. im really in the dark about what acually happened]
could you an opening in this situation [providing it is somewhat accurate? im not sure what the ratios are.]
Andrew R Curtis
hmmn whats the penalties if its fixed interest for 5 years….
The only thing constant is change
The only difference between a weed and a flower is a judgement
dad sussed it out and its about 2500 approx.
that doesnt seem much to me but its still $2500.
any help is really appreciated. cos the possibility we had before this thread was sell.
and its obvious thats not the best long term thing to do.
however we are focused short term here.
dilemmas dilemmas…
im curious as to what restructuring we could do that would change the situation suficiently enough for him to consider holding?
Andrew R Curtis
H, hi. now i am about to suggest something and know that i have very little experience in property at all, i am good at fixing stuff though.
Could you sell a contract for a percentage of the capital gains that this property should make over next few years for the amount of cash you need now. I’d be interested.
re read first line please, this just a suggestion, seek legal advice ya ya ya yada[strum]lifexperience
‘Could you sell a contract for a percentage of the capital gains that this property should make over next few years for the amount of cash you need now. I’d be interested.’
thats an interesting and creative idea. ill have a better look at that idea.
Andrew R Curtis
I take it you have cash shortage
personally I would have had a tenant lined up and in, at least giving income….you can sell with tenants anyway, 6 month leases arent bad…unless you cant rent it out???you would need to look at some of the following and Im no guru!
interest rate at time that has been fixed
if you changed and went elsewhere and it costs you 2500 to do so, if you negotiated a better rate, and I know some 3 year rates are less than 5 year ones, would that help? would you save? could you manage in short term?my accountant told me not to sell, but to hold. I dont always take his advice, but if there is a chance you can scrape thru, then hold to get something back….2500 is a lot to lose when you havent got it (assuming) to lose. But, cutting your losses can sometimes be a good thing…..
is it in joint names?
is it pssible to sell to someone else in the family?
so many variables…..
I would say go to a few banks, ask them to give you some ideas, see if you cant negoiate…eg longer terms? changing loan over to something ….oh I dont know!!!
The only thing constant is change
The only difference between a weed and a flower is a judgement
OK i have done some calculations, if you think the property is worth more than the 204000 bid above, then i will guess you think it is worth ummmmmmmmm. 205000?, if so then if you took a conservative 4% appreciation in value over 5 years which would come to an increase of $44,412 by the end of your 5 yr loan. You should be able to find someone to sell this to. If you sold it for say 20,000(the investor would be making over 100% over 5 years (better than 5% term deposit). Plus you could put it into the contract that you keep any capital gains above this.
In 5 years, you have property revalued or sell and pay out investor. Or roll deal over again.
Ps I think you smart to lock in Interest rates.
just a suggestion.Once again I have no experience, seek legal advice ya yada
Maybe see if the above punters want to bid at this deal…… go[xmas]lifexperience
You were asking about wraps. Basically in a wrap you become a financier, and you make your money on a margin between what it costs for you to borrow, and what it costs the person buying the place.
the hardest thing about wrapping is finding and qualifying a lead. Most people who you would wrap to wouldn;t be able to get finance the traditional way, (not even low docs) otherwise they would. So a high end property doesn’t really go with the usual kind of wrappee. Also bear in mind that if it was a 5 percent yielding property, a tenant would be able to rent the identical place for half what it would cost them if you wrapped it to them at 10 percent. Plus they would have all the maintenance and strata costs too.
I just very much doubt you’d find a suitable person to wrap the property to. Remember you have to mark up the property too, to guard against default, and then if you did, there’s always the possibility that the wrappee would last about 5 minutes and then default, and what would you do then?
I sound negative about wraps and I’m not really, but i think they are a strategy perfectly suited to a house that is going to cost a tenant the same price to rent as it would to buy,
as in, cashflow positive properties at the lower end of the market.
just my 2 cents.
Just whack it on the market and let the market get you the highest price someone is willing to pay at that time.Any alternatives to an agent sale sure saves you commission, but how will you market the property?
cheers-
mini
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