Hi Everyone
I was just talking to a family member about the technique of property flipping and a point got raised that I think is pretty valid:
What happens if you don’t find a buyer by the end of your settlement period? Do you forfeit your deposit, or can you claim your refund back?
BTW – I’m in NSW – I’m not sure if that will make a difference though.
If anyone can help answer my question, I’ll appreciate it greatly.
-Nikhil
You settle on the property or lose your deposit and risk being sued.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry is exactly right. Never, ever agree to purchase a property with the intention to flip it UNLESS you are in a financial position to settle it if you cant onsell.
Potential upsides are great, but you should always make sure you have the downsides covered too. Flipping without a backup plan is not investing – its speculating.
Jay.
You could also call it punting.
You can win big, but if you lose, you’ll be out on yer bum in the middle of winter without any clothes on!!
Learn, Love, Strive. Make a difference!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
