DM

Probably need to no more about the deal but have done several deals like this previously with no problems.

As i say more information needed first.

Digit, the property is a development site and is required to be valued by a valuer as such, taking into consideration the highest and best use of the property.

As a matter of interest, what did the banks valuer come back at? Was it similar to the value that your valuer came back with? Did your valuer assess the site in its current form, zoning and at its H&BU or based on the current DA? (if it is the latter, it may pay to get the valuer to revise the valuation to reflect the H&BU).

Doesn't sound that great a deal. This is a business transaction, and emotion should not be a factor, and if the deal doesn't stack up FOR YOU you shouldn't do it.
If he needs to sell as you say, you are giving him a win by buying it at all.
You could always tell him it is only worth $260k and offer him $250k (assuming he needs the cash as you mentioned) and still with the 7.5% lease back. There's nothing to stop him from re-negging on that down the track though.
Especially if you reckon it will only be worth $260k in 2 years; why would you pay more than $250k and then sell for $260k in 2 years; the cap gain tax will wipe out almost any gain.
If you don't sell after 2 years, and then have to rent on the open rental market, you may not get a return anywhere near 7.5% and the cap gain hasn't been that good.
I can only see the upside being a short-term decent rent return with some good on-paper deductions. Your only hope would be a better cap growth than you've predicted.
If you could get it for around $220k with the 7.5% leaseback then you may have a decent deal. Be prepared to make a very short settlement on that offer though.

Alright guys,

Here is an feedback. I paid initial deposit $500 to do soil test and initial quotation. At the time, sales rep said they will get back to me in 14 days. Today its already been 6 weeks and no contact yet.

After 2 weeks I got a mail stating that it will be ready on early next month. Hence I called sales rep. that if you can't even deliver initial quote which you promised in 14 days then I don't want to continue with you guys. He said 14days are 14 BUSINESS days and it will be ready next week. Since then its already 2 weeks but no contact yet. Day before yesterday got message from sales rep that stuff is ready and someone from head office will call me to book an appointment but no contact yet.

lets see.. wait n watch for an update on appointment. I wonder what will happen once I am looked into thier contract

My free advise to Mr Barry Suckling, Director of NBG is

1) Never promise something which you can't deliver. in other words always "Under Promise and Over Deliver" thats the key to successful business.

thanks
DM.

Doesn't sound good!!  Our contracts were due this week – I rang yesterday and requested they be mailed so I can go through them and then meet with them with any questions.  Hopefully they will be in the mail tomorrow!

If you already own the land, then transferring to a trust could incur stamp duty again as well as possible CGT and legals fees etc.

Before we go down the structuring avenue:

1) Switch the P & I repayments on your loan to interest only and if you want to increase the repayments on your PPOR by the savings.

2) See if you current lender has a 100% offset account linked to your home loan. If so have all of your income now and future into this account and have the interest only repayments coming from this accounts.

If you are paying variable rate you should be able to do better with this. Who is the current lender ?

You are too late to change the title of the land from your name to a Trust name without triggering a possible stamp duty and CGT issue. Still maybe viable but consideration needed before jumping in.

More information needed to give a qualified answer.