Greetings and salutations,
I am a long time reader and have learnt heaps, been stimulated and amused by these forums.
This is my first post.
I have 12 acres of land with a small home in an area zoned for subdivision into 1 acre blocks. Council has indicated subdivision would be supported . Over the next 1-3 years I plan to develop the land, selling a few blocks of 1-5 acres and keeping one. The home is about to become vacant while I do some renovations, and rather than get in a rental tenant for a short lease, I wondered if I could do a wrap “off the plan”, that is with an agreement to buy the house with an acre of land on vendor finance, before the subdivision has proceeded. Possibly I could find the tenant and not charge the deposit until subdivision has occurred.
Had hoped to keep the whole block for longer but the negative cashflow is consuming all my income, so I can’t maintain it financially (or the mowing!)Any thoughts?
Thanks. Dallas
“If you look long enough into the void the void begins to look back through you.” Nietzsche
Interesting ?????
Have a similar in VIC with a subdivision on a corner block.
Basically , I cannot sell house and land until the new title is created ….
a VT contract would have to show title details and we dont have UNTIL the titles office issue all the splits …..am open to hear any ways around this ????
Wes
Legally you can’t sell a property title on terms if you don’t have it. But you could possibly issue an option to buy the property subject to approval.
you could possibly ask for deposits as expression of interest from prospective buyers subject to subdivision approval. say 1%-5% of the price.
Or if the problem is servicing the loan, you could find a investor partner who takes on a share of the deal for cash.
We have a country block we are holding too, we put cows on it to keep grass down and make a few extra dollars. Or you could lease the land for horse/cattle agistment.
Good luck
Live, Learn and GrowLifexperience
Hi
I agree. An Option is probably the best way to go in the circumstances. Good luck with the subdivision. Sounds like it will be lucrative for you.
If you are keen to hold the properties, could you look at releasing some of the equity to fund the negative cashflow. I’m doing it with one of mine and it sure beats selling them as we all know that every time we do we both deplete our assets as well as forego capital appreciation. You might want to consider this, esp. if they are in an area where the long term capital growth is healthy.
I’ve just done this with a property with my bank. They did two vals – one un-subdivided and one subdivided and are lending on the equity of the subdivided lots.
Hope this helps with your thought processes. Can’t help with the lawn mowing however!!!
Megan
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