Forums / Property Investing / General Property / 70% Below Market Value?

Viewing 7 posts - 1 through 7 (of 7 total)
  • David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75

    Hi guys,

    Just doing a bit of Suburb research and stumbled onto the following:

    Click here to check out property

    Just wondering why this property has been sold for so cheap?

    Is it a sale for a family member? Did the owners default on their loan?

    Where can I find out more info?

    Cheers,

    David

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75

    Here’s another strange transaction

    Kulbina Dr

    Anyone have any clue what’s going on?

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Trashed, structure or flood, bank resale, etc etc etc

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    As Jaxon said, many options. You could always call the REA and ask? 😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Ben
    Participant
    @benmstarlinesecurity
    Join Date: 2015
    Post Count: 14

    Properties are sold cheap for many reasons but this is one possible dreadfully corrupt but, as far as I know, still legal scenario. Maybe there are some legal eagles out there who can put the Jonny Badboy’s of this world in jail for me.

    So we have this business owner. Let’s call him “Jonny Badboy”. The business is earning money and is going along fine. Jonny is close to retirement and has been trying to sell his business for the last few years but unfortunately he’s been unable to sell it.

    The business has always paid suppliers on time but recently has been running up a lot of dept with trade creditors and is stretching them all out to 90 days. They accept and extend the credit terms. After all, Jonny Badboy has always paid their account and the suppliers don’t want to loose the business.

    As Jonny Badboy is close to retirement and decides to pays himself a “well deserved” but huge bonus that year. The bonus is so handsome that now the business cannot hope pay any of it’s accounts. Jonny Badboy uses the huge bonus to pay off the mortgages on all IP’s instead of using the businesses money to pay it’s suppliers. Jonny Badboy then transfers all the now debt free IP’s into his spouses name at crazy cheap prices (as you see here) and even avoids paying much in stamp duty. Then, because he hasn’t paid his suppliers, they force him into receivership and he declares personal bankruptcy. As none of the IP’s are in his name and he’s now a bankruptee the trade creditors can’t touch him and he sails away into the sunset, spouse by his side, with all his suppliers money.

    As he’s close to retirement he doesn’t give a rats that he’s declared himself bankrupt and he knew that he was never going to be able to sell the business for anywhere near 90 days worth or trade credit so he justifies to himself that this was his “only option”. He did it for his kids.

    Dirty rotten scoundrel.

    • This reply was modified 1 year, 9 months ago by  Ben. Reason: expletive changed
    • This reply was modified 1 year, 9 months ago by  Ben.
    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Ben unrelated, but yeah you’ve pointed out something I have heard a few times.

    Surprising still today it seems this can be done.

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    Sometimes it can be a mistake from the agent too.
    other times some people hate agents and sell too cheap as a result .

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

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