Put & Call Options

[Rockstar]

(see next post for P&C part 2 - as file was too large for 1 attachment).

Here is part 2

 

[Perthite]

Hello
Have you done any sucessful property option deals or do you know anyone in Perth who has? I'm wanting to find out more information on the process.
I've been doing some reasarch, going to seminars etc but would really love to talk to someone who has had real experience.
Thanks...

 

[urban cowboy]

Guys thanks so much for that info - sorry I missed them when u posted, been out of the way a bit of late - will have a squiz and get back to you.

cheers


Perthrite - I haven't, but I'm sure there are a few here who have

 

[reeco]

and how did this go i wonder?

 

[WinstonWolfe]

otherwise I like to keep it simple- standard REIQ with lots of special condits... pre incorp clauses. Due Dilligence, subj to DA approval. Maybe a non refundable deposit.

You call that simple...and fair?

in a rising market, 'subject to DA' is often manipulated by the developer/buyer to drag out the DA approval process.....most commonly to
- secure more OPM for funding project.
- find someone to flick the DA approved site to for higher profit.
- delay release of finished product to market at higher profit.

In any event, any vendor that agrees to 'subject to DA' deserves the rough end of the pineapple this promises.

 

[cu@thetop]

You call that simple...and fair?

in a rising market, 'subject to DA' is often manipulated by the developer/buyer to drag out the DA approval process.....most commonly to
- secure more OPM for funding project.
- find someone to flick the DA approved site to for higher profit.
- delay release of finished product to market at higher profit.

In any event, any vendor that agrees to 'subject to DA' deserves the rough end of the pineapple this promises.

For where a buyer is getting DA over land sold by pensioner under contract with my spec condits:
From a vendor point of view it is fine if there is a time limit on it. If at the end of the period there is no approval then the buyer needs to make a choice of either abandoning the DA or going unconditional and risking not getting the DA they want- or pay for an extension.

Where buying off the plan from a developer (the scenario you refer to) completely unfair to the buyer for the reasons you outline.