Forums / Property Investing / Help Needed! / Unique property deal

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of TinpotdeveloperTinpotdeveloper
    Participant
    @tinpotdeveloper
    Join Date: 2017
    Post Count: 7

    Property for sale house 4 bedroom and 500m2 residential block for offers mid $500k range. Property will be in your name.

    I will require to buy back property in contract after 3 years

    If rented will return $465 per week rental – great location.

    Willing to pay margin on original purchase price to buyer when repurchasing in three years – lets discuss what you want to be paid

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 269

    Tall order.

    It’s basically a finance deal (presuming you will eventually buy the property). Definitely buyer will want to make a healthy profit. Taking into account purchasing costs and opportunity cost, you might find that it won’t be cheap to buy back the property…

    Which suburb is it in?

    Will you be renting it?

    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 TinpotdeveloperTinpotdeveloper
    Participant
    @tinpotdeveloper
    Join Date: 2017
    Post Count: 7

    Hi Ethan

    Its in Picton NSW and yes it would be rented out until repurchased

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 240

    Good luck Tinpotdeveloper.

    Ethan means the buyer incurs fees on the way in and out, even a guaranteed rent isn’t great. unless you guarantee to buy back at same price or market value.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,016

    Property for sale house 4 bedroom and 500m2 residential block for offers mid $500k range. Property will be in your name.
    I will require to buy back property in contract after 3 years
    If rented will return $465 per week rental – great location.
    Willing to pay margin on original purchase price to buyer when repurchasing in three years – lets discuss what you want to be paid

    Why would someone want to enter into such a deal? The entry and exit costs would be about 10%, the property would be cashflow negative and the prices may drop in 3 years. What is the potential advantage for a buyer?

    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 IllusivedreamsIllusivedreams
    Participant
    @illusivedreams
    Join Date: 2018
    Post Count: 2

    Agree with Terry cant see it happening.

Viewing 6 posts - 1 through 6 (of 6 total)

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