All Topics / Help Needed! / Off the Plan purchase…needs to on sell

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of lidia sherwinlidia sherwin
    Member
    @lidia-sherwin
    Join Date: 2007
    Post Count: 2

    HI there

    Purchased a unit off the plan in April 2007 (broadbeach), settlement will be Oct 2008. 

    After some timely consideration, yes after the fact, 'bright idea' will probably on sell, however not sure how to go about it. Does anyone know the 'actual' process?  And I would like to know were one stands regards the real estate agent's commission. 

    Purchase = $495,000.00
    2 bedroom, 2 bathroom, 1 carpark under cover, over looking the beach on Broadbeach, Gold Coast, level 4 in a 21 level building.

    Many thanks before hand:)

    Lidia

    Profile photo of THEHEATHTHEHEATH
    Participant
    @theheath
    Join Date: 2006
    Post Count: 27

    Out of interest, do you think you’ve made anything on it yet? Why are you selling, because you think obtaining finance in the future may be difficult?

    Profile photo of LenKLenK
    Member
    @lenk
    Join Date: 2005
    Post Count: 8

    Lidia –

    onselling is a common part of otp dealings. Easiest for you is to simply contact the agent/organisation that arranged your initial purchase. They will happily act as your agents in this matter. Of course, you are more likely to have some success if all of the otp units in the development have already been sold.

    The actual process is that the contracts will be organised such that there is a back-to-back settlement.

    Your original purchase is settled first, followed by the settling of the onsell purchaser.

    You will be liable for CGT if there was any profit on the sale, but as your purchase date (contract date) is more than 12 months, you will also be eligible for the GST discount if you wait until your contract is at least 12mths old.

    You will be paying the agents fees on the sale. Part of the deal, but if you use the dsame agent that made the initial sale to you, they may be amenable to giving a bit of a discount.

    Having passed through Broadbeach last week, there appears to be a lot of development on the beachfront all of the way from TweedH almost to Brissy. I saw many 2xbed 1 bath 1 car properties for sale in the ares. Even on Cavill Ave, the prices were only 30k higher. Given the expexted cap growth in the area, you seem to have a well priced unit, though you will be more likely to achieve a better result closer to completion time.

    Cheers,

    LenK

    Profile photo of lidia sherwinlidia sherwin
    Member
    @lidia-sherwin
    Join Date: 2007
    Post Count: 2

    I asked the question re on selling to ensure I know what I need to do, if I make the decision in 10 to 12 months.  I've been crunching the rental and growth figures on the property and realise that I do have a 'good' property.  Just need to cover my tracks as they say and obtaining finance will be no issue, so I am okay there.

    Cheers

    Lidia

    Profile photo of AlwayslearningAlwayslearning
    Participant
    @alwayslearning
    Join Date: 2003
    Post Count: 44

    lenk gave great reply have off plan units in sierra grand broadbeach time of settlement july nx year

    i feel closer to completion you will make more profit but by the same token cover yourself and have bank funding in place in case your forced to settle

    Profile photo of dimechodimecho
    Member
    @dimecho
    Join Date: 2007
    Post Count: 9

    Hi There,

    I'm facing the same issue with a lot of land which I'm on selling, only way to aviod paying CTG, Stamp and Agent fees really is to purchase the "at signing of contracts" "and/or nominiee" then once the property settles you need to nominate the person who will be on the title.

    Very hard to do, and can only really be done when dealing with someone you know.

    Apart from that, crunch the agent down to a fair trade, save on ur CTG and pay your out goings such as stamp.

    I've also looked into short term loans, i.e 1 week loans – not a lot of success their either, looks like you have to go through a normal lending to get the funds.

    Hope this helps.

    Cheers,
    DIM.

    Profile photo of mistadomistado
    Member
    @mistado
    Join Date: 2006
    Post Count: 16

    Out of curiosity if your first purchase is off the plan and its ment to be your primary residence but you decide to sell if before completion, I would assume then this would make it an investment property, and if that is the case I would forefeit the FHOG but would it be considered that i have already purchased my primary residence..and any future purchases would then be not entitled to being my PPOR , for tax purposes.

Viewing 7 posts - 1 through 7 (of 7 total)

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