- andrew671Participant@andrew671Join Date: 2013Post Count: 1
Hey there everyone.
Was hoping to get some advice on everyone's thoughts on property options. I have been presented with what seems like an incredible opportunity I just have little experience in this area. The offer is to purchase an option on residential land in Western Australia for $21,000 with up to 100% return on each right to help with the formation stage of a property trust secured against a stapled security listing on the ASX.
HAs anyone heard anything similar to this or had experience in opportunities similar to this?
Thankyou so much for your time.
AndrewRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Don't tell me this incredible opportunity has been presented to you by a firm that tele-marketed you telling you had to act quick before all of the options were sold, promised the world, showed you some nice graphs etc.
Seems too good to be true doesn't it….. well the good news is it is.
I have used Call Options on many a development deal and Yes they can work well but do a forum search on the subject and you will see these firms are cropping all over the Country offering the same thing.
They may their money today and you sit and wait for 8-10 years on a whim and a prayer.
There are better things to invest in.
Yours in FinanceRedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
Agree with Richard, sounds to good to be true…
Land options are standard and can be good, however, please perform diligence on the developer as well as the area as there will be a period of time before you see your returnJimmy86Participant@jimmy86Join Date: 2013Post Count: 46
It's funny how 'they know' they will get you a 100% return…
Letter to Santa:
Please give me the Crystal Ball this company has so I can know what returns I will get in the future.
… sorry already getting smashed with xmas music in the shops…. im already loosing it.
Personally I would only invest if i knew the area like the back of my hand. It's funny they are marketing to you (I assume your not in WA) for property in WA. Just something to think about.Ryan McLeanParticipant@ryan-mcleanJoin Date: 2010Post Count: 547
If you organised the deal and analyses the returns yourself then that is probably the only case where this may be a good investment.
If the company is paying sales people to sell this to you the chances are that they have already taken all of the cream off the deal for themselves. Meaning its probably too good to be true.
I have seen many people break even or lose money after being promised certain rates of growth or return.
Do the research yourself. Don't rely on a salespersons wordsDanielle.AllanMember@danielle.allanJoin Date: 2010Post Count: 8
You just need to be prepared to lose the 21k if it all stuffs up. If its legit then it could return well. But if property falls in a hole and the development falls over you have nothing.
DaniellecarllarzParticipant@carllarzJoin Date: 2014Post Count: 10
Great response from Danielle.
If this was really from a telemarketing style promotion, i would say dont even bother.. if it was presented through someone you know or someone reputable. I would agree with Danielle, if you have 21k to throw away, why not ?!
For most people however, 21k is not worth a huge risk, when you CAN make good money with 21K over time.New Age PropertyParticipant@new-age-propertyJoin Date: 2014Post Count: 15
On a side note to this thread, Richard, how do you find people who are willing to enter option deals with you?Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Work very closely with a number of development orientated real estate agents.
Yours In FinanceNew Age PropertyParticipant@new-age-propertyJoin Date: 2014Post Count: 15
Thanks Richard, I'll up on that idea.