All Topics / Value Adding / Placing Options on Units – Developments

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  • Profile photo of batts71batts71
    Participant
    @batts71
    Join Date: 2004
    Post Count: 57
    August 18, 2005 - 7:46 pm

    Hi guys,

    Following on from the previous post about options on land.

    I have heard of investors placing options on units at preconstructions stage – and later.

    Could someone explain how this process works, and the pro’s/con’s.

    Or direct me to some good reading (books/websites)

    Cheers,

    Batts

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031
    August 18, 2005 - 11:57 pm

    hi batts71
    Never had an option on a unit but would only look at it if it was a put/call option and call was at completion.
    As you can lend on put/call options.
    lenders I think wouldn’t accept an option as a pre sale so there would be no advantage to the developer.
    A put call option (I can ask)I think would go as a pre sale ( an if so then a developer may look it) maybe a broker would have this answer.

    here to help

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