Property Flipping - Dos and Don'ts????
- Thread starter S and B
- Start date
Sioban
From your post I am not entirely sure that you understand the concept of flipping.
Usually you would use a Put & Call Option with the Terms of the purchase contract contained in the Option Agreement.
In Qld Stamp Duty is not payable on Call Options and as you will not settle on the deal or is any loan interest. Obviously there maybe funding costs along the way to cover DA etc etc.
If you flip the deal through an Agent then Yes you will incur Agents Fees.
From your post I am not entirely sure that you understand the concept of flipping.
Usually you would use a Put & Call Option with the Terms of the purchase contract contained in the Option Agreement.
In Qld Stamp Duty is not payable on Call Options and as you will not settle on the deal or is any loan interest. Obviously there maybe funding costs along the way to cover DA etc etc.
If you flip the deal through an Agent then Yes you will incur Agents Fees.
Yes, DONT do it!
Unless you're an experienced investor or rich enough to cover any losses. It's same as gambling because there are no guarantees that the property will grow in capital in such a short time.
The best investment statergy is to BUY & HOLD. Meaning INVEST FOR THE LONG TERM.
Richard
That's true, that if you have the knowledge of the techniques and the market, you can do well through flips.
Your point about put and call options was well made.
Some years ago, people made some good money through straight flips- just buying in the name "plus nominee", and selling it on. That loophole was closed for many in recent years- but the technique is still avaliable in the US.
In Oz now it requires a lot more knowledge and sophistication. Yours was not a simple buy/sell transaction with not much work on your behalf.
(Congratulations though- very well done!)
Have a look in the innovative techniques section for flipping... there are heaps of posts. For example:
http://www.somersoft.com/forums/showthread.php?t=26404
Maybe this post could be moved to that section?
Steve
http://www.somersoft.com/forums/showthread.php?t=26404
Maybe this post could be moved to that section?
Steve
Hiya,
Richard, have you posted about these stories before? I may have missed the thread, but, I would imagine I am not the only one here who would like to hear a little more if you are happy to divulge?
Cheers
James.
I'm looking into property flipping. I would REALLYappreciate any tips that more experienced investors can offer me.
Particularly, what are the costs involved in flipping - stamp duty, agent fees, interest paid on loan. Anything else?
Any Dos and Don'ts?
Thanks
Sioban
Sioban, what do you think flipping actually involves? Also, are you reading US stuff or Australian info on flipping?
Alex
Like I said for "EXPERIENCED INVESTOR ONLY". Because if someone is just starting out in property investment and cant afford any big losses then for them it's a gamble. It's not something I wanna discourage people from but you have to be absolutely certain that what you're doing is going to pay off.
Well done on ur successful flip. How long was the whole process? How did your other 2 flips go?
By the way SIOBAN here is some more info on Steven Mcknights site about flips. http://www.propertyinvesting.com/strategies/flips
That explains it abit better.
Cheers,
Ahmad
