All Topics / Legal & Accounting / What happens if your property flip fails?

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  • Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi Everyone

    I was just talking to a family member about the technique of property flipping and a point got raised that I think is pretty valid:

    What happens if you don’t find a buyer by the end of your settlement period? Do you forfeit your deposit, or can you claim your refund back?

    BTW – I’m in NSW – I’m not sure if that will make a difference though.

    If anyone can help answer my question, I’ll appreciate it greatly.

    -Nikhil

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You settle on the property or lose your deposit and risk being sued.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of JayJay
    Member
    @jay
    Join Date: 2004
    Post Count: 59

    Terry is exactly right. Never, ever agree to purchase a property with the intention to flip it UNLESS you are in a financial position to settle it if you cant onsell.

    Potential upsides are great, but you should always make sure you have the downsides covered too. Flipping without a backup plan is not investing – its speculating.

    Jay.

    Profile photo of buzzwellsbuzzwells
    Participant
    @buzzwells
    Join Date: 2005
    Post Count: 83

    You could also call it punting.

    You can win big, but if you lose, you’ll be out on yer bum in the middle of winter without any clothes on!!

    Learn, Love, Strive. Make a difference!

Viewing 4 posts - 1 through 4 (of 4 total)

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