All Topics / The Treasure Chest / Quick cash or Buy & hold?

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  • Profile photo of Jarrod_2Jarrod_2
    Member
    @jarrod_2
    Join Date: 2002
    Post Count: 3
    July 19, 2003 - 4:03 am

    Hello Everyone,
    I haven’t visited the forum for a while, however I have a question to put to the forum.
    I live in Geelong, Victoria.
    A family member has agreed to sell me a 2 BR , 2.5 story, architectually designed Inner city town house with bay views and rooftop garden. The price agreed too is 300K. This is well below the fair market value which real estate agents estimate to be 400k+ (the family member knows this).
    I had planned to get a loan for 300K and buy the property in 6mths time when it is built. I would then live in it for 1 year and sell after that time or rent it out.
    My problem is I have to work in my current job for another 6mths to qualify for the loan plus the time whilst owning the property. I don’t like the job but it gives me enough money to qualify.

    Is this the most effective way to profit from this opportunity? buy & hold

    Or should I, as in John Burley’s book and another similar book describes , use the exchange of contract method or “quick cash deal” as it is more commonly known.

    Would this be a better alternative in this situation/time?
    note: the family member has agreed to let me try this option if I choose.

    Or is there any other idea’s that may be better suited?

    I appreciate all replies.
    Jarrod

    Profile photo of hwd007hwd007
    Member
    @hwd007
    Join Date: 2002
    Post Count: 247
    July 19, 2003 - 4:28 am

    Hmm, if you intend selling it, then why dont you just get your family member to sell it and give you the profit ? hehe. seems much simpler.

    Profile photo of acwireacwire
    Participant
    @acwire
    Join Date: 2003
    Post Count: 3
    July 19, 2003 - 4:41 am

    Hi Jarrod,

    You need to work out what your long term goal is. If you require quick cash, then organise to onsell. If you would like to keep the property for cashflow, you will have to work out if it will actually be positive. It sounds to me that you aren’t happy with your current employment status so with that in mind I would go with quick cash which will give you leverage in other investing ventures.[:)]

    Profile photo of Jarrod_2Jarrod_2
    Member
    @jarrod_2
    Join Date: 2002
    Post Count: 3
    July 19, 2003 - 5:02 am

    Thanks for the replies,
    I think onselling and using the cash to fund other investments is a wise idea. I will even ask if the person selling it to me will sell it and give me the profit! Great way of looking at the question.
    Jarrod

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