Unique property deal

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

Developerme
Participant
@tinpotdeveloper
Join Date: 2017
Post Count: 11
July 25, 2018 - 12:28 pm
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
Ethan Timor
Participant
@ethantimor
Join Date: 2016
Post Count: 282
July 28, 2018 - 5:50 pm
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)
Developerme
Participant
@tinpotdeveloper
Join Date: 2017
Post Count: 11
July 30, 2018 - 8:20 am
Hi Ethan
Its in Picton NSW and yes it would be rented out until repurchased
Jaxon
Participant
@jaxona
Join Date: 2014
Post Count: 284
August 3, 2018 - 3:59 pm
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.
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone Me
JPA Financial Services Pty Ltd
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 4, 2018 - 9:06 am
Developerme wrote:
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 Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Illusivedreams
Participant
@illusivedreams
Join Date: 2018
Post Count: 4
August 8, 2018 - 2:34 pm
Agree with Terry cant see it happening.