I’ve seen a great site for a block of appartments, however I wish to know how to put an option on the property, get development approval, then resell for a profit to a developer or the like.
How do i put an option thingy on this??..please help
Loanwolfie[biggrin]
You just have to approach the owner and put you offer to them. If they accept it, talk to your solicitor about getting a option contract drawn up.
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
Loanwolf
What State is the property in?
Cheers Richard
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http://www.yourstatefinance.comIP funding and US property finance
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Its in Qld. The property is sitting on 800sqmtrs but it doesnt have any car parking or driveway. Its in a prime position but on a kind of a slope. The owner wants early 300’s but is willing to negotiate. If there was a way to get council to build an access kerb on the foot path, then maybe a level of carparks (groundlevel) could be built and appartments on top. Seaviews and cbd vista available the higher you build.
How much should you generally pay for an option?
I’d like to purchase a particular 1 br unit in a couple of years… it’s worth about $140,000 now.
Loan Wolf
Feel free to email me and i will send you back a basic Call Option contract we use in Qld.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Ian,
I have heard that 1% is reasonable to pay, but you can negotiate anything you want. I haven’t used options before, but that’s what I’ve been told.
best thing is to talk with the seller and if they are willing to grant you an option ask what they would like in consideration for a period of 4 months or whatever it takes you to get your DA.
I would guess somewhere in the order of $5 to 10,000, might get you the deal for a block of flats.
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582Hi loanwolf
Usually its 12 months but I have bought 2 year option from vendors.
Its usually 1% they are handy and you can make money as long as you can get what you want.
I posted an option yesterday that lost over 500,000 (not sure of the post have a read and youll see my response)(i can send it to you again if you wish)because it was zoned wrong and they had paid for all da fees.
So be carefull that you have done your figures
they are not all roses.
You take the cost of da and associated cost and then hope that some one will buy at the end.
If your smart (I think I am) and you can’t sell using the option we wait until the option runs out and buy it off the owner with your da attached all depend on the timing.
currently here in sydney of the 4 projects on my desk they are all options.
and they are not in a very good bargaining position.
The other thing to remember is developers are both buyers of raw sites, which this is and da sites which you hope it to be.and priced accordingly I buy da approved sites for ease of process.here to help
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