Last night I went to a 'free' seminar run by the 21st Century Academy about buying wholesale land. To sum it up, the Academy has bought a large amount of farm land just south of Shepparton VIC. They say the land is planned to be developed into residential starting in 10 years time.
They are selling options to buy blocks of land for when this occurs. The options cost max $22k per block and then no more to pay till the land settles in 10 years in which case it's expected the land will triple in value from $90k to $270k. Paying today's prices for tomorrows land.
Has anyone else seen this / looked into it / taken up the offer?
Hubby and I are keen as it all sounds good. The only thing about it that bothers me a little, is that it will pretty much max out our equity (if we buy 3 blocks) and then will have to find extra money to make interest repayments unless we borrow more and capitalise, and we probably wouldn't be able to sell before 10 years as it'll be harder to sell an option then an actual piece of land ... so we'll be locked in.
The options may also be tax deductible so on hubby's tax bracket it'll work out to about $13k per option after tax.
Hubby is meeting with the guy again today.
They are selling options to buy blocks of land for when this occurs. The options cost max $22k per block and then no more to pay till the land settles in 10 years in which case it's expected the land will triple in value from $90k to $270k. Paying today's prices for tomorrows land.
Has anyone else seen this / looked into it / taken up the offer?
Hubby and I are keen as it all sounds good. The only thing about it that bothers me a little, is that it will pretty much max out our equity (if we buy 3 blocks) and then will have to find extra money to make interest repayments unless we borrow more and capitalise, and we probably wouldn't be able to sell before 10 years as it'll be harder to sell an option then an actual piece of land ... so we'll be locked in.
The options may also be tax deductible so on hubby's tax bracket it'll work out to about $13k per option after tax.
Hubby is meeting with the guy again today.