hi guys,
recently i have been told by someone about a new investment way in real estate.
– buying an untitled land with long settlement date (approx 15months) with only 5% deposit and sell it when it’s getting to the settlement date.
for example, land value is $250,000 when he purchased in early 2016 and 5% deposit is $12,500. settlement date is late 2017. around July 2017 he sold the land at $310,000
basically he used $12,500 as capital to make $47,500 profit in 15mths. does it sounds real?
is there anyone have done this before?
wide open to any advise or comments. thank you!
Yes sounds real and possible.
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
Yeah, can and was done by many investors over the years.
Need to watch the downside though: what if you can’t on-sell (at a higher price or at all) prior to settlement? 😬
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
It’s just selling something for more than the initial purchase price. Have to factor in any related government charges and taxes which will still be incurred.
The key to the strategy above is buying land/property which rises substantially in a short period of time. (ie in the example above the land appreciated in value by 24% in a bit over a year – in reality this isn’t going to happen often or consistently, any strategy will look great when you use random numbers like that.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I am in a simillar situation, I bought land early last year, its has now appreciated about 40k before settlement. I would like to sell it because of changes in my financial status.
I have tried advertising it in gumtree, I have got a lot of interest (40 enquiries in 3 weeks) but no one is ready to deal with cash component of the nomination.
Is there a better place to advertise, or an easier way to sell, I have looked in this forum but cant find a sub for such sales. (I am new around here)
You mean you are trying to commit a crime – money laundering and duty evasion and are complaining that strangers won’t help?
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
Really Terry!!!
why all the value judgement and you dont know me?
I am a simple OZ guy just trying to hustle and make a living in this tough world.
As you are a structuring lawyer, I believe you have helped people play the system in ways that my little money cant even imagine.
And I am not saying anything you do is illegal, but we can all agree Google and apple paying almost zero tax yet someone like me paying an effective tax of 30% isnt fair. Yet its legal.If you want to be helpful, you can advise me on the risks of the approach I am taking but dont give me labels Mr.Panama
read my post carefully, the only way of selling I know before settlement is nomination, if anyone knows a better way please advise (legal means preffered as I think this is a legally straight website)
Really Terry!!!
why all the value judgement and you dont know me?
I am a simple OZ guy just trying to hustle and make a living in this tough world.
As you are a structuring lawyer, I believe you have helped people play the system in ways that my little money cant even imagine.
And I am not saying anything you do is illegal, but we can all agree Google and apple paying almost zero tax yet someone like me paying an effective tax of 30% isnt fair. Yet its legal.
If you want to be helpful, you can advise me on the risks of the approach I am taking but dont give me labels Mr.Panama
read my post carefully, the only way of selling I know before settlement is nomination, if anyone knows a better way please advise (legal means preffered as I think this is a legally straight website)Sorry to have offended you oz guy.
Can I ask why you were wanting someone to ‘pay cash component for the nomination’?
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
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