Hey all,
I need some advice on a situation i had in mind. If anyone can set me right i would be grateful.
I have been looking at an off the plan townhouse. I had the idea that if i could pay the 10% deposit to the developer and create a contract where i would agree to pay the asking sale price by the required date, but try to sell the townhouse to someone else closer to the completion date without laying down the full price of the house by flipping the contract to somone else.
Is this possible todo?
If someone could help me out with the problem with doing this it would be great.
Thank youHi roy22
ALWAYS a dangerous practice to try to flip developer off the plan stock. Developers always tend to "push the market" when they set the price and in the current market situation you may find yourself "stuck" with a property you can't flip.
Suggest you look for good "used" property you can build some value into and then flip if this is your wish.
ok thanks for the feedback qgm.
No problem roy22. If you want to chat further email me at [email protected] I have experience in this field.
It is possible, but can be very difficult to do. You will need to make sure you can settle if you cannot sell. Stamp duty would also be payable by yourself and the new purchaser.
Terryw | 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
An example of where I currently have my PPOR – purchased off the plan ~2 years ago. GFC occurred prior to settlement. Resulted in 12 out of 60 units not settleing back in January when complex was completed. Today, 5 months since initial settlements, 3 of the properties still listed for sale by the developer. All of these were sold originally. There is an identicle complex next door to us by same developer. They have just recently started settling with similar numbers being resold by original developer.
I know a couple of people who had the idea of flipping who are now living in the complex due to the change in the economy. Very hard to predict what will happen so far into the future, and if things head south these projects will make things harder to get of due to many other people being in a similar position.
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