Forum Replies Created
Hi guys,
I failed to see the advantage of this process.
It would appear that under normal circumstances (eg. not using loopholes) stamp duty has to be paid. So that’s no advantage
It would also appear that you have to find a deal in the fuirst place that gives you extended settlement periods 60+ day to give you time for stritching up your deal. If you don’t find a buyer that sttles within your settelemnt period then you you still have to come up with the entire purchase amount. So that advantage is also out the door in that scenario.
So it would appear that a number of things have to go your way for this to work which looks like it makes it a little risky.
Anyway, I haven’t done it nor do i know anybody who has. Perhaps someone could tell there story how it actually was achieved.
Thanks
Hi Steve,
I have just terminated a contract and I know from the bank that i cabn only borrow sround $220 000.
I live in Brisbane and these days I can’t even get one project for this price that would come with many problems, more then its worth let alone do what you suggest and do many reno project simul.
I wonder how people like myself could get into this investing game ?Cheers
Chefpop,
just to make you feel better i tell you my story with RE.
I bought my first prop as a Devine package in 94 in Logan (sounth of Brisbane) because they were the only guys who did an LVR of 95% and since I didn’t have much deposit and wanted a place I signed up.
I bought it for $115k then and probably paid a good $10 more then if I had bought the land myself and build the house. To make matter worse a few years later houses in the treet were selling for $80k etc. I still got that place today now of course its worth around $230k and is +ve….
An even worse experience and loss of money happened to me second purchase. I bought it I think around 99 for $186k in Brisbane and due to long term unemployment was froced to sell it a year later for $202k. We all know hat happened in 2000 and beyond.
Yep, you got it I just sold the damn thing when the RE took off, and I saw it today on the market for $430k….OUCH !!
Hope this makes you feel better, because now that I relived it all for you I feel rotten.Cheers
Thanks for the feedback.
I too have my doubts about the prices and in particular the fact that they are fixed. Quality is usually not an issue because most of the stuff they are flogging is new developments etc, but I thing they are more then fully priced and definetly not cash flow positive at least not the once I have seen on there stock list.
Thanks again and keep em coming.
Cheers
Reading all this raises an interseting question ?
Is it sufficent to rely on the Bank Valuation alone ?
In many cases this is done free of charge to the buyer as part of the bank covering themself and therfore can save you the hassle and cost of getting an valuer.
However, I have heard that the bank valuation are lower then market valueAny thoughts anybody?
Hi Steve,
just joined yesterday this geat site and got your newletter.
I read about your multiplication by division strategy and thefirst thing that came to my mind is the same question a few other since then have posted and that is How can you expect to find $40k prop that has gone upi to $80 for $40 again !!
I would be very interested to get some live example you have done including the location were you managed to do this.
Thanks
