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How to 'on-sell' a property without purchasing it

Discussion in 'The Buying & Selling Process' started by aussieB, 4th Sep, 2015.

  1. aussieB

    aussieB Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    71
    Location:
    Darwin
    Situation : There is a unit available for way under market value. Comparable sales in the same complex were over 100k of the asking price. Is there a way I can on sell this property ?
    It is very easy to find a buyer who could pay at least $30k over the asking price and still be getting a bargain. I am not sure if this is what buyers agents exactly do, because a BA is engaged buy a buyer.
    So, if this is possible. What are the steps involved to on sell this unit ?
     
  2. CU@THETOP

    CU@THETOP Well-Known Member

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    19th Jun, 2015
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    Location:
    Brisbane
    You could enter an option with a "or nominee" clause in it- but check with NT lawyers on that first. Why not pay $5000 for the Mark Rolton / Massland starter course and even more for the platinum mentoring program (much better than the gold one) to guide you through this process of which only public speaking gurus have full knowledge.
    Note: the bit about options was genuine advice- the rest about Rolton etc was sarcasm. Sim is there a sarcasm emote???
     
  3. Perthguy

    Perthguy Well-Known Member

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    Location:
    Perth
    It is possible. My brother in law did this in Perth. This is one way to do it:
    1. put in an offer and have it accepted. Get as long as you can for finance and as long as you can for settlement.
    2. during this time, market the property. Sell it and make settlement the day after your settlement.

    Of course you have to pay stamp duty and conveyancing costs. My brother in law did this and make quite a bit.

    The other strategy is to use an option agreement but it might not be legal in your state. You would have to check that out first.

    There is some basic info about option agreements here:
    http://www.yourinvestmentpropertyma...property-when-you-dont-have-money-175455.aspx
     
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  4. tobe

    tobe Well-Known Member

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    18th Jun, 2015
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    Location:
    Melbourne
    Where is the unit? In Victoria you cant nominate the property for a higher price unless you agree to also pay stamp duty (whether or not you settle the property).

    If it is so easy to sell this property above the asking price, why don't you offer to do so for the current owner for a share of the profits?
     
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  5. aussieB

    aussieB Well-Known Member

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    19th Jun, 2015
    Posts:
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    Location:
    Darwin
    @tobe the unit is in Darwin. I used to live in the complex and from what I recall the unit is the property of the state/territory - I don't think the gov would be interested in doing business with me as you suggest. Darwin real estate is doing so bad that developers of prime CBD units with guaranteed sea views etc are offering a 10% discount as a starter conversation. Till a few weeks ago, a free car was a bonus, now its the norm for one particular development. REAs also tell me that very soon they will be offering upto $26k in cash (matching the FHOG ?). Which means the only problem I may run into is finding an immediate buyer.
    As @Perthguy says, if the process of onselling means I have to own it at some stage, then I might as well hold it for 6 months or so as an IP. This seems like a very good deal given the current market, but if the market tanks further, I may be in a soup :eek:
     
  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Location:
    Oz
    There is a difference between a FALLING market, and a genuinely UNDER market property. Make sure you understand the difference and the risks, as you have said if you buy cheap but can't sell, then you probably haven't bought under market price, you just bought the new market price. As you can see property markets can and do fall. If you are definitely keen on holding long term there is nothing wrong with buying in a distressed market, but remember you might see further falls or a few yrs of flatlining before the increase.

    Regarding using options to onsell pre settlement each state has its own rules, you need to speak to a NT property lawyer to structure it correctly to make sure you don't pay double stamp duty.
     
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