Forums / Property Investing / Creative Investing / purchasing & selling an untitled land in Melbourne

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  • Profile photo of TC962TC962
    Participant
    @tc962
    Join Date: 2018
    Post Count: 1

    hi guys,

    recently i have been told by someone about a new investment way in real estate.

    – buying an untitled land with long settlement date (approx 15months) with only 5% deposit and sell it when it’s getting to the settlement date.

    for example, land value is $250,000 when he purchased in early 2016 and 5% deposit is $12,500. settlement date is late 2017. around July 2017 he sold the land at $310,000

    basically he used $12,500 as capital to make $47,500 profit in 15mths. does it sounds real?

    is there anyone have done this before?

    wide open to any advise or comments. thank you!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Yes sounds real and possible.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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

    Yeah, can and was done by many investors over the years.

    Need to watch the downside though: what if you can’t on-sell (at a higher price or at all) prior to settlement? 😬

    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)

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    It’s just selling something for more than the initial purchase price. Have to factor in any related government charges and taxes which will still be incurred.

    The key to the strategy above is buying land/property which rises substantially in a short period of time. (ie in the example above the land appreciated in value by 24% in a bit over a year – in reality this isn’t going to happen often or consistently, any strategy will look great when you use random numbers like that.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of yuolyuol
    Participant
    @twerty777
    Join Date: 2018
    Post Count: 4

    I am in a simillar situation, I bought land early last year, its has now appreciated about 40k before settlement. I would like to sell it because of changes in my financial status.

    I have tried advertising it in gumtree, I have got a lot of interest (40 enquiries in 3 weeks) but no one is ready to deal with cash component of the nomination.

    Is there a better place to advertise, or an easier way to sell, I have looked in this forum but cant find a sub for such sales. (I am new around here)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    You mean you are trying to commit a crime – money laundering and duty evasion and are complaining that strangers won’t help?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of yuolyuol
    Participant
    @twerty777
    Join Date: 2018
    Post Count: 4

    Really Terry!!!
    why all the value judgement and you dont know me?
    I am a simple OZ guy just trying to hustle and make a living in this tough world.
    As you are a structuring lawyer, I believe you have helped people play the system in ways that my little money cant even imagine.
    And I am not saying anything you do is illegal, but we can all agree Google and apple paying almost zero tax yet someone like me paying an effective tax of 30% isnt fair. Yet its legal.

    If you want to be helpful, you can advise me on the risks of the approach I am taking but dont give me labels Mr.Panama

    read my post carefully, the only way of selling I know before settlement is nomination, if anyone knows a better way please advise (legal means preffered as I think this is a legally straight website)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Really Terry!!!
    why all the value judgement and you dont know me?
    I am a simple OZ guy just trying to hustle and make a living in this tough world.
    As you are a structuring lawyer, I believe you have helped people play the system in ways that my little money cant even imagine.
    And I am not saying anything you do is illegal, but we can all agree Google and apple paying almost zero tax yet someone like me paying an effective tax of 30% isnt fair. Yet its legal.
    If you want to be helpful, you can advise me on the risks of the approach I am taking but dont give me labels Mr.Panama
    read my post carefully, the only way of selling I know before settlement is nomination, if anyone knows a better way please advise (legal means preffered as I think this is a legally straight website)

    Sorry to have offended you oz guy.

    Can I ask why you were wanting someone to ‘pay cash component for the nomination’?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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