Forums / Property Investing / Creative Investing / Investment Properties in QLD through Put and Call Option

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  • Profile photo of Dreams Come TrueDreams Come True
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    @dreams-come-true
    Join Date: 2013
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    I recently got an Option on 6 Townhouses in Caboolture North of Brisbane, when I look at the properties months ago they were advertise for a really  low price. I called the real state agent and ask if I could buy one of them. But what a surprise when he told me that I couldn't, the advertising didn't specify that you need to buy all of them to archive the right price.

    Short history  I ended up contacting the seller directly and organizing a meeting with him. Through the meeting I found out that the properties were not strata titled and that this guy was more concern about his TAX bill that to sell and make  money out of the properties. I end up offering him the asking price if he could guarantee me a Put and Call Option with special conditions one of them was that he need to strata title the properties before the Option took place and my Option need to be for 180 days. Not only that before I entered into  the meeting I knew I could get a good deal knowing that the properties were totally undervalued.  We signed the option 3 weeks ago and I took 3 different REA to the place to give me an appraisal on the properties, now that they are on individual titles they were valued $60k above of what I negotiated, so far I have put 3 contracts through and my option Fee was $100 for each property. 

    On top of this I will be able to keep one of the properties as and investment been positive cash flow, taking into consideration that I would exercise my option for the negotiated price. If I want to get a bit creative a could do a lease option on this property and get some money at front and keep the cash flow that it bring plus using the benefits of depreciation for a period of say 5 years.

    Creativity is important in the property scenario, think different and solve problems.

    Eddie

    Profile photo of RPIRPI
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    @rpi
    Join Date: 2012
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    Thanks for sharing.

    RPI | Certus Legal Group / PRO Town Planners
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    Profile photo of Paul DobsonPaul Dobson
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    Well done Eddie ;-)

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
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    Profile photo of oc1oc1
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    Great work Eddie. Thanks for sharing.

    Profile photo of FreckleFreckle
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    @freckle
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    So lets see if I've got this right.

    We've got a developer with 6 units that's got too much coin and who now realises that his tax bill will be too high so even after he's gone to all the trouble and cost of developing these units thinks; nope…. I'm making far too much money out of this and I can't be bothered strata titling these to make it easier to sell them but when some person from outa the blue happens along I'll do that (strata them because he asked me so nicely) and give him a 60K /unit discount cause I really like the guy.

    Then wow!!! Within 3 weeks of signing we have 3/6 signed up.

    Cough cough cough….. damn I've got something stuck in my throat.

    Profile photo of TerrywTerryw
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    What about stamp duty?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of Richard TaylorRichard Taylor
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    No Stamp Duty on a Option Contract in Qld which i nice but of course SD on the Transfer to your name.

    Nice deal if you can pick those up all day long.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
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    You lucky QLDers. NSW and Vic have both introduced stamp duty on put and call options, assessable on the transfer value.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of RPIRPI
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    @rpi
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    And NSW doesn't like Disc trusts for land tax reasons either.

    Hopefully they follow through with the removal of duty on transfer of units this time around

    RPI | Certus Legal Group / PRO Town Planners
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    Profile photo of Dreams Come TrueDreams Come True
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    @dreams-come-true
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    That's correct SD is payable just in the case that the properties were transferred to my name.

    Using the nominee clause, the end buyer, specially if it is an investor is the one that pays SD, those that are first home owners are exempted.

    Those deals can be picked up  QLD007, just keep looking and looking and talking to people.

    I just secured one similar but this one is for a house on an acreage on the way to Toowoomba.

    The biggest challenge with options in residential property is when some solicitors dot get it, remember there are deal makers and deal breakers.

    In the case that I was forced to buy any of the properties , I would turned them into a Lease Option or Installment Contracts after purchasing to increase my cash flow. I may take  longer to get all the profit but as far a money keeps coming in !

    Profile photo of TerrywTerryw
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    DCT,

    Are you sure about that with the stamp duty? Have you sought legal advice?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Profile photo of Dreams Come TrueDreams Come True
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    Hi Terry,

    I wouldn't do options without legal advise.

    My solicitor is one of the best on the arena in QLD. Spark is his last name, he has done  my Options as well as VF documents for  some of my clients and associates.

    Profile photo of Dreams Come TrueDreams Come True
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    Hi Paul,

    I am quite new on this web but I have hear that you are one of the best person to talk about VF in the country.

    I am grateful that you are here sharing part of your knowledge and experience.

    Looking forward to keep posting .

    Eduard

    Profile photo of Richard TaylorRichard Taylor
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    DCT oh trust me i have done my fair share in Brisbane

    I did the old Nundah Bowls Club 53 unit development.

    1.15M – $3,25 in 18 months. Paid for the Annual holiday that year.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Dreams Come TrueDreams Come True
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    @dreams-come-true
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    Hi Richard,

    Very impressive, would you main if I can get a copy of your interview with API.

    As I have said before, I am quite new it the property game, still doing a lot of hard work and as immigrant some times is harder.

    my email is [email protected]

    Cheers.

    Eduard

    Profile photo of TerrywTerryw
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    Dreams Come True wrote:
    Hi Terry,

    I wouldn't do options without legal advise.

    My solicitor is one of the best on the arena in QLD. Spark is his last name, he has done  my Options as well as VF documents for  some of my clients and associates.

    That’s good. I was worried with you said ‘nominee’. Do must mean you are assigning the option whereas I took it as you were entering into a COS for land and then nominating another purchaser before settlement.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    Hi Eduard

    Sent

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Bruce from BrisyBruce from Brisy
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    nice deal – well done. Keep it up.

    Profile photo of matthewhornematthewhorne
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    @matthewhorne
    Join Date: 2012
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    Well done DCT!!!

    Sounds like a great deal you have done there. It certainly goes to show that there is always a deal to be made using the right strategies.

    Regards,

    Matt.

    Profile photo of Reno101Reno101
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    @reno101
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    Well done DCT , and yes agree the stamp duty is paid by the end buyer because you hold the option and are selling the deal to another party , and a caveat also covers yourself during the process, I did an option on a property which involved doing a renovation and organised the sale to the end buyer ,I was the option holder with a caveat in place ,12 months option , deal done in 6 months from option to sale ,good deal with good money made . cheers Greg

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