Flip

[WebBoard]

From: Mike .


FLIPS?
From: David P
Date: 03 Nov 2000
Time: 10:54:21

I have seen mention of "flips" in a few posts. Can someone explain what this is?

thanks, David

 

[WebBoard]

Owen

Reply: 1
From: Mike .


Re: FLIPS?
From: Owen
Date: 03 Nov 2000
Time: 16:16:28

My understanding of flipping is where I buy an IP and then on-sell it to another buyer before settlement. For example, I buy an apartment off-the-plan for $200K, wait 12 months for completion and on-sell to new buyer for $230K. Looks like this -

Deposit Required - $20K

Balance - $180K

My up front cost, a Deposit Bond - say $1000

New buyer gives $20K to deposit bond company, $180K to vendor and $30K to me minus my original $1000 cost and I profit $29K.

Obviously I pay capital gains on the profit at 1/2 my marginal rate. I still don't know who pays the stamp duty and on how much though.

Never done this and maybe never will. Just my 2c.

 

[WebBoard]

Robert

Reply: 1.1
From: Mike .


Re: FLIPS?
From: Robert
Date: 03 Nov 2000
Time: 11:22:32

It's were a person negotiates a deal on your behalf and you pay a consulting fee.

Robert

 

[WebBoard]

David

Reply: 1.1.1
From: Mike .


Re: FLIPS?
From: David
Date: 03 Nov 2000
Time: 15:17:28

Ok, thanks. David