Hi guys,
I know, I know. Buying off the plan is never a good idea. However, there is a company calling themselves mentors that pitches:
– $379k townhouse for a 76K deposit in Officer
– you get refund of deposit after settlement
– initially negatively geared by about $2k per year and positively geared after 5-ish yearsThe median price for a 3 bed unit in that area is 339K, so we would be buying below market value. Growth rate is 15% on realestate.com. However, you get the deposit back after settlement. Essentially leaving you with a 303k purchases price. I have been sent all the details and they look good – provided that we see growth…
what does everyone think?If that’s a rebate the valuer will take this off the valued amount, so this can heavily affect your LVR and require you put further funds into the deal.
Fundamentally, any good investment doesn’t require these shenanigans.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Fundamentally, any good investment doesn’t require these shenanigans.
Spot on.
Just had a similar conversation with a client recently.
The property was coming with rental guarantees, free legal advice, etc.
If they need to thrown in so many sweeteners then you’ve got to question the quality of the investment.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
They say they are buying these developments in bulk. This is how they are negotiating the discount…
Make sure you disclose to the lender.
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
They say they are buying these developments in bulk. This is how they are negotiating the discount…
They wouldn’t actually be ‘buying’ the developments, they’re just second tier sales jocks. Anyone with a mobile phone and ABN can do exactly the same – and do!
Property is easy to sell in Australia, you don’t need to provide massive ‘incentives’ to sell them. So why give away massive discounting? It’s all about maximising the profit in your own pockets, which I have no doubt they are doing. ;)
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
What are your actual goals/plans here? The property is in Officer which isn’t that flash yet is nearly $400k. Why not skip the OTP idea and get a real house in a city that’s actually in growth phase like Adelaide or Brisbane?
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
This is dodginess at its finest. Selling something overpriced so the pricetag gets recorded as a “precedent” for all and sundry to see and use as a benchmark for current prices in the area, and refunding a portion to make it all fine with the purchaser after the fact. However it’s mortgage fraud, pure and simple.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
smelly
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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