Hi everyone there, we’ve come across a situation which put us on the crossroad so every advice you give will help us to make a sound decision of which way to go.
Just singed the contract with agent this morning for the first investment property we bought this year.
We paid $300,000 for this property and is put under our trust name.
However, agent came back afternoon and said the other party is very keen to acquire the same property and willing to pay $25,000 extra to buy from us.
Have asked our solicitor and she said there’s no problem we can do the directional transfer of the title before the settlement.
So has anyone in the forum dealt with the similiar situation before? What’s the cost involved and is it a easy way or a long, stressed way to make quick monies? [blink]
Any of your advice will be so much appreciated.[biggrin]
Want2brich
Stamp duty on the purchase, tax on your profit. Is the agent going to want a drink as well? Sounds like a very meagre gain for the effort you put into selecting and negotiating a property which appears to have been vindicated by this offer
thanks crj. We’ve tried to offer under the quoted price however we only got it for the lowest price on the quote.[exhappy]
I’m very interested in knowing if anyone here have done the same deal (directional transfer) and anything involved in transferring the title.
want2brich
Hi want2brich,
I think you may have missed the point of crj’s post. Regardless of what is involved in a directional transfer you’re still going to be out of pocket with stamp duty, capital gains tax and legal fees. This is going to eat into your $25K gross profit.
You have to work out what your net gain will be and whether it is worth your while. You could always ask for more money based on your calculations e.g. nothing less than a 10% net profit. Maybe this buyer knows something about the property that you don’t? Perhaps there is treasure buried somewhere..
yes you right OSienna, after a quick calculation i found out the overall profit left is about $7000, so i guess it is no point doing it.
If you have been offered that much straight away, I would probably investigate what might be going on as you may have yourself something special and make a better profit. [biggrin]
hi thanks for all your inputs. This property is on a good area only 9k from Melbourne city and we plan to keep it for 2 years (already have the tenant there and happy to stay) and pull down to build a new house. The block next door sold for $339,000 last December and medium price for the houses sold in the same street 3 years ago is $250,000. These are all the research we did before we purcahsed this property, hopefully this will give us a good start for our investments![biggrin]
Still, making $7000 for a few weeks (?) work is not bad. You could just go out and find another property.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
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