Someone offered me a barter exchange from car to property investment?????

Something interesting that came out of my expectation. I intended to sell my car through a popular website and I expect when people call up, they'd be interested to buy your car in cash. Today, I recieved a phone call, something I have never encountered and I would like to hear from you whether this is legitimate or not and if so, what are the advices I should ask or do.

There was this lady who rang me saying she is some kind of agent and her client is looking for a car and is interested in mine. Then she asked me whether I am interested in some kind of property investment as part of the exchange deal. She said a guy will be calling me next week to discuss the proposal of some good deals provided I am interested. And if I am interested in one of their property, the deal will be exchanging my car for whatever the price is worth for and if the property is worth more than the car, then I will be paying on top of that.

I then asked why would I go under you if I could go through the real estates or go through websites like domain.com, realestate.com.au etc. to search for the properties I want and they said because they have a better price deal that is not available on the market. She said it will be a bit of everything varying from commercial to private properties ranging from NSW all the way up to Cairns.

This is the rough idea that I heard. I will hear what the guy has to say later when he contacts me later on but I somehow find this to be fishy so thats why I want to ask whether someone has been offered like that before when the purpose is actually for selling the car??? Or this is some sort of scam?

Your answer will be helpful

Thank you
 
Sounds like it's complicating a simple transaction and also introducing risk of unknown consequences.

Also seems like a sneaky way of the buyers/selling agents marketing to unweary potential purchasors, trying to convince them they are getting a bargain investment property purchase opportunity.
 
Things must be tough that they need to resort to getting a buyers list from an online car sales site. Quite clever actually.

I would be very wary. Ask yourself:

Were it not for this contact based on an unrelated matter, am I actually in the market for an investment property?

Where are these deals that are so hot they can't be put on the net? Sydney? In the boonies? Are people moving into or out of the areas where these deals are located?

If the properties stack up, what are the expected yields?

How do these compare to other investment property yields?.......or other investment asset yields at present?

If you consider it is a scam, report them to the adsministrator of the car sales website they got in contact with you from. ACCC, FIDO and ASIC may also be keen to hear about them.

I am not a cynic, but a sceptic. This could be legit or a very sneaky covert way to increase their database of clients (suckers) without spending big marketing dollars.
 
It is possible to barter exchange your goods and/or services for other goods and/or services. The most common way barter occurs is within a barter exchange company that provides the service of recording the transactions between third parties for a fee. I have a list of ATO rulings in regards to bartering which I will post if I can find them in my archives. Until than I would recommend speaking to an accountant that is savvy with these transactions because you will be liable for stamp duty (Office of State Revenue) and possible GST/CGT (ATO) on barter exchanges.

If the property happens to be valued significantly higher than the vehicle, and you still wish to continue with the transaction, be prepared for some frustration if you need to seek a loan from a financial lender to cover the difference in value. Buying property that has a barter component does not fit the usual model the banks are use too and you may be turned down by several until you find one that is willing to work with you on the deal.

ATO Website Barter section

Addtional Note:

After re-reading your post the scenario that comes to mind when someone want's to exchange a vehicle for an investment property is time-share accomodation. Which I would not consider an investment property. Interesting to hear what this deal is about.
 
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There was this lady who rang me saying she is some kind of agent and her client is looking for a car and is interested in mine.

G'Day fabulous

Welcome to the Forum!

Sounds like a great idea!

There is someone looking for a motor vehicle, who has a property (block of land, old house out in the sticks) that is surplus to her requirements

She has come across a barter company, and engaged their services. They have approached you: Are you interested in exchanging your motor vehicle for a block of land / house out in the sticks?

We never know when opportunity knocks on our door. Blasted energy sales people (we mutter) but hey! until we open the door we don't know who, or what, is there!

If the property is interesting to you, you will still need a Solicitor / Conveyancer: The owner gets what she wants - a different car, and you get what you want - to not have the car - but instead of cash, you get a 25 acre property in a dead mining town (or wherever).

As always, this is caveat emptor for her and for you.

I know someone who got a block of land in exchange for a second hand kitchen.

Keep an open mind and you may be very surprised what can come into your line of vision. Exploring possibilities doesn't mean that you have to act on them, but you will never know if you don't at least have the conversation.

Did I mention that I drive a 1993 Mitsubishi Star Wagon? I don't rate motor vehicles high on the list of 'assets' (which they aren't) but I certainly rate property - in all it's shapes and forms - as an asset

However, if this is a quarter acre of Moon then perhaps it's not such a good deal .... but then again, if Virgin get the Shuttle working, a quarter acre on the Moon could be an amazing opportunity!!

Cheers
Kristine
 
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yeh dont be scared of it, certainly explore it. I was making some offers on property with some art as part deposit - found a couple of interested people but generally very difficult, everyone is very skeptical
 
Wow, I didn't expect a massive replies after I was out for dinner for a few hours.

First of all, I would like to say, thanks for the tips and advices and I will keep in mind as the progress continues on. Although I don't know if it sounds too good to be true, but I'd have a crack to see what the guy has to say.

I searched through the internet about this method and I haven't seen anything that is related to this or heard that is a scam so it will be very interesting to see what it comes up. I mean, after what she had offered, I was going to say "No thanks" but after a split second thought, I said to myself, "Wait a minute, since she said the guy is going to give me a call next week to talk about the proposal, then I will see what he has to offer me". So I feel overall, I have nothing to lose. After the guy has told me what properties have offered for me, I will do a good research to see whether the property or land is really that value or whether it's just a method of sneaky marketing strategy.

I am quite surprised that no one has encountered this kind of situation before as I thought maybe there was at least someone who has heard of it i.e. exchange for car and property deal.

I will certainly keep you updated from time to time, but not until this weekend or early next week since I was informed I would be contacted by then.

Please feel free to continue on the conversation if there is anything that is advisable or otherwise, stay tuned!

Thanks once again
 
I am quite surprised that no one has encountered this kind of situation before as I thought maybe there was at least someone who has heard of it i.e. exchange for car and property deal.

heaps of it goes on - I know a developer that traded land for a boat, land for houses etc. some agents specialise in it, I think it is quite interestin personally. some years ago I nearly sold a townhouse for barter points, a merc, a pallet of wine and cash... ultimately I got a better deal just taking market price in cash tho.
 
heaps of it goes on - I know a developer that traded land for a boat, land for houses etc. some agents specialise in it, I think it is quite interestin personally. some years ago I nearly sold a townhouse for barter points, a merc, a pallet of wine and cash... ultimately I got a better deal just taking market price in cash tho.


Oh yeah, I also forgot to mention, the other 'guy' that the agent mentioned is actually a developer too who has been few decades in this field but I still find it a bit awkward that he would find an agent to find a car on his behalf rather than on his own. It's more common if buyers find a 'buyer's agent' to look for a property that may suit their need rather than cars since property can be purchased anywhere whereas house\land properties are unique products.

So you are saying, generally speaking, you'd be better off taking the market cash rather than trading for a property? Just like trading in cars, we all know that if we trade in cars to car dealerships, the price we get offered will be lower than selling it privately. Similar theory here, no?
 
heaps of it goes on - I know a developer that traded land for a boat, land for houses etc.

My Dad used to call them "swapsie deals" and he was always on the lookout for opportunities to obtain something that he had been looking for or to be able to provide the other party with something of Dad's that he no longer needed. Mind you, at that stage, a gentleman's handshake counted a great deal and the "sharks" were not so many.

Frizzle
 
So you are saying, generally speaking, you'd be better off taking the market cash rather than trading for a property? Just like trading in cars, we all know that if we trade in cars to car dealerships, the price we get offered will be lower than selling it privately. Similar theory here, no?

it really just depends on the deal. if you don't mind say 20% of your purchase price being paid in 'stuff' for exmaple then its fine. you may be getting 10% above market anyway.
 
Maybe I'm too cyncical...but...i reckon the other guy doesn't even want your car...the propeties will be marked up by the value of the car and then you will be offered a discount to the value of your car...they'll then onsell the car and repeat the process (possibly simultaneously as it sounds like they have a few properties...)

Then again...it could be legit and a fantastic deal...like others have said just be very aware =)
 
I had exactly the same experience about a year ago - selling a high end car through carsales.com - a lady called and offered a similar type of deal. Sounded way too fishy - by all means follow up but personally set a swathe of alarm bells ringing!
 
Just a quick update. Today I recieved a call from a lady who talked to me yesterday and I thought she would give me an update of the deal. However, the funny thing is.....everything was exposed.

The first thing she did was introduce herself and thensaying that her boss is interested in buying my car and is very likely to proceed etc but he doesn't want to pay by cash but rather use the properties to exchange it. She totally forgot who I was. I let her keep talking (and basically, she said the same thing as yesterday), and then at last, I replied "Hm...sorry you spoke to me yesterday" and then she was embarassed before she could recalled what was happening. All she said that the boss will call me next week..

Now from my prediction, it could seem to be legitimate but she is just trying to call up every seller and say the same thing in order to attract or lure to get into business.

I think I am likely to pass on the offer. I smell something fishy.
 
It is obviously a scam. What is the price of your car? Whats next the land is worth double the car and you have to pay them only 50% more? Plus you are going to have to pay stamp duty on the market price of the land.

Move on sell the car for cash. If its such a great piece of land you can always buy it with the cash you received from the car later couldn't you?
 
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