flipping or onselling

hi suzieq
I will give you my differences, maybe there not the same as yours.
1.flipping is were you have purchased via a put call option or paid 5% exchange and made a profit(on paper) and you as they say flip it to another purchaser Know if you have done your home work( as a good kid)you would have set up your structure to allow for any gain.
2.on selling is a little different as you own the property and when you resell you must have a different structure ( again doing your homework)because of capital growth and a host of other costs
and 3.If your settling agent doesn’t know the difference sack it and get another one because the people you have behind you must be good at what they do. sorry to be hard but this isn’t rocket science.
thank god ( sorry badger)you didn’t ask about trusts he or she would be saying the only trust he or she knows is trust me.

here to help

suzieq

You say you have placed a deposit on a block of land so i asssume from this you have signed a contract.

It is unlikely that the Vendor or Developer will allow you to replace this with a Put / Call Option as he will see you as merely a speculator and probably want to increase the price.

The Put / Call Option should have been drawn up initially.

If you want to sell now you will need to draw up a sale contract which will trigger a double stamp duty issue.

You can try and have simultanous settlement dates by using a Transfer by Direction but ensure that you have sufficient cash funds avaialble in case your purchaser has a problem and cannot settle with you.

An alternative would have been to purchase the block of land in a Pty Ltd company name and then sell the shares in the company. I have commented on this strategy on a earlier post in response to another question.

This would alleviate the payment of double stamp duty unless of course the Company was considered “Land Rich”.

In saying all this each State has its own laws on payment of duty. In Qld there is no SD payable on an Option but this will vary throughout the Country.

Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.com

Specialising in US & IP finance.

hi suzieq
Sorry but this is why I keep saying the structure is very important from the start.
As richard has said put call options or caveats are put on at the start,
I just offer today on a property with either put call or caveat.
what was the deposit and what state, in nsw anything under 5% must be agreed as exchange or is classed as a deposit ( bit of a difference)
I would need to know which state and how you purchased or deposited the land, this will give me and one of the wizards here a chance to give you a light at the end of the tunnel.
Sorry but profit is not much good if half is taken because the structure is wrong.
The structure is very different between hold, flip, build and sell, or ppor.
and richard is right you can’t go back so write this off to learning.
As for cash flow short fall caveat lending is possible but suzieq don’t go down that track unless you understand how it works and its benefits (sounds like you need a broker give finamce friend or one of the sticks brokers a email and have a chat)( I call all perthez the stick I think it ok)
hope this is as clear as mud.

here to help

Pty Ltd purchase of the land? Qld007 you’re a genius.

thats actually one of the best ideas i’ve seen on this site.

does any body know what the cost of incorporating a Co is? a mate of mine said it was about $1500