jempireParticipant@jempireJoin Date: 2001Post Count: 19
I have an opportunity to purchase a house on an 850sm block and an adjoining 450sm vacant land. I don’t want to pay for both titles now but want to secure a price for both and settle and take possession on the house first in 30days and the vacant land 6mths later.
Does anyone have any ideas on the best way to structure the offer for this to occur?
Your ideas are greatly appreciated. Thanks in advance.
Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
- This topic was modified 4 years, 5 months ago by jempire. Reason: Wordsmithing
Call Option or extended settlement.
Yours in Finance
0-40 properties in a decade. Ask me how.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Extended settlement on the vacant block is the simplest – which is generally the type which is less likely to scare off the vendor/real estate agent if they’re involved.Adrian CahillParticipant@adriannqldJoin Date: 2003Post Count: 127
In negotiations, when people get stuck, ask question that make people think up on a higher or more abstract level (we call this Chunking up). Example; what for, whats the purpose of that.
“Whats the real reason for selling both blocks together now?”
If they want to sell it all together for security, how else can you make them secure?
If they want to sell it all so they no longer have to worry about, how can you accommodate that?
If they need the money, how much money do they actually need and when? how can you accommodate that?
Guessing, your purpose is to make money, so how can you make money and satisfy their higher purpose too.BuyersAgentParticipant@knightmJoin Date: 2005Post Count: 330JaneParticipant@ppginternationalJoin Date: 2015Post Count: 3crjParticipant@crjJoin Date: 2004Post Count: 618
they might need to sell both together to get the capital gains exemption on yhe vacant block if the house is their PPORDavid SiacciParticipant@david-siacciJoin Date: 2014Post Count: 17
Do they own them outright or is there a loan?
If there is no loan ask them to sell one to you and register as first mortgage. They have good security and an income in the form of interest. Buy the other one as you were going to.
If there is a loan offering a couple of thousand as option fee(not refundable) or covering outgoings during the option period may satisfy their needs.
You know there are tonnes of differing scenarios and they all effect the offer you will make to satisfy what they need.