Is this possible?

Yes it is possible and legal – theideal situation is to settle on the same day.

Be aware that this was a common tactic to make good money in the last few years. Now that growth has slowed I would advise caution.

Do your research independent of the marketers claims.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hi Bonnie,

I would counsel you to undertake very thorough research on your ‘plan and the property.’

As MH indicated this approach was used by some investors (or is that gamblers) as a means of making a quick buck. It was especially promoted when long building timeframes were in place and while we were experiencing very high growth rates or, at least investors thought they were assured of high growth levels. Nonetheless a lot of home truths have now come home to rest with the inner city market – a hunting ground for many flippers – now being oversupplied and values are falling.

I would also take some time to include CGT liability in your calculation – you will need a 12 + 1 day duration from time of signing contract to qualify for 50% CGT exemption otherwise you will see approx 25% of your profit disappear in tax.

I would also encourage you to adopt a longer timeframe to your investing – in my mind now is certainly not the time to invest for the short term – invest for the long term sure.

Derek
[email protected]

Property Investment Support Available. Ongoing and never stopping. PM welcome.

As the others have said, flipping is strategy that was marketeered a few years ago, by people like Henry Kaye. It was in a very different RE market (a rising market) where people could basically set their own values. It was also in the days hwen OTP properties were considered to be “discount”- as in “you’ll be amazed how much this property is worth when it’s built in 2 years!” That MAY have been the truth during a short period of time, but markets change so rapidly, you would have to have paid a deposit 5 years ago for it to have gained real value. Also, 5 years ago, it wasn’t an oversupplied market, as it is in some areas now.

Get an independent valuer to see what they think it is worth. You may not be able to sell it for 30k extra on completion. In fact, you may be in a situation, when it is worth 30k LESS than you paid for it on completion- depending on where it is and what it is. There are some people who bought an apartment in an oversupplied area, with dreams of fabulous riches.. and then had to sell it in a damper market a few years later for 100k less than they paid for it.

I hate to be a pessimist :o) but would you be able to afford it if this was the case?

kay henry

Yep do research, not all off the plan places do well, I have seen a few people stuck with duds

A lot of people also tend to be more cautious when an election is about to happen, and given the possible interest rate market might be an issue after the election or even a change in government, would make me ponder the situation a little more carefully. You might get a better bargain by waiting….but only you will know this.

cheers

Elves

” a blind man may see what a sighted man may not”