Wholesale land?

[Savanna100]

Can I draw your attention to a few things???
Look at the extent of the recent floods in Shepparton;
Check out the demographics, substantial welfare recipeint population etc;
Focus on regional centres like Albury, Ballarat etc, your $66k would go miles further there.

Learn a lot more about property investing by reading as much as you can before you start looking at edgy complicated things like options on future land subdivision.

 

[BV]

what if these guys pocket your money and close down and you're left with the loans and no land?

 

[long88]

Hi jodie,

you need to understand the "options", you own nothing, just the right to purchase the land at the agreed price in 10 years time. so this is the same as speculating that the price of that piece of land will increase in 10 years time.

would you rather have that $$$, buying property trust ? or maybe buy 33k worth of bhp/anz/nab share, and still get dividend payment ? (at least have some cash flow coming in) while still have some upside for potential capital gain.

it doesnt says on the contract, that after 10 years, price of that land will be 207k guaranteed ?

good luck

 

[The Y-man]

.
The options may also be tax deductible....
.

...and may not. Get a tax ruling for this.

Do this ONLY if you are not going to be ruined if you lose the entire amount you put into the game.

Approach with the same mindset as a lottery.

The Y-man

 

[Jodie701]

Didn't do it

I know's it been awhile, but thought I would just update.

Thanks everyone. I know I came across as being a bit daft. I felt a bit stressed out as it was happening so suddenly and I had no info in hand about the deal and wondered if there was any last minute info to pass onto hubby before the meeting.
The meeting went well, so hubby signed up because there's a 3 day cooling off period from the time you receive the information pack. It took over a week for that info pack to come through and in the meantime we could only find information that appeared to be less than positive. The info they gave us wasn't what we were expecting and didn't ease our minds, so we decided to pull out.

A special thanks to CDD. You helped us kick start our own research. It's true that the areas they were trying to sell us are in areas not expected to be developed until after 2031. There would also be an oversupply of smaller blocks as according to the Shepparton housing strategy for the next 20 years there is a need for approx 4900 blocks with average size 800 m2, and approx 1600 blocks with average size 400 m2.

 

[mary&mat]

Great to hear jodie7091...it looked worrying from the start!

Glad you'll be putting your hard earned money somewhere else...hopefully somewhere safer & more lucrative!

Regards,
M&M

 

[topcropper]

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.
.

Farm land? Probably good that it all fell through. If they bought it as farm land, then perhaps they paid farmland prices for it plus a bit? Perhaps they paid $10,000 per hectare? That's what good farm land is worth. If they wanted to sell it to you for say 22k for a quarter acre. That's 22k for a tenth of a hectare. That would price the farm land at 220k for a hectare when it sells for 10k.

All speculation of course, but for someone wanting to do this sort of a deal, I can't see why you wouldn't just go and buy a small block on the edge of town off a farmer. A lot of my mates have done just that and have seen land prices go up by factors of 10 times, as the land changed in value from farm prices to real estate prices. Everyone around here wants 5 or 10 acres on the edge of town.


See ya's.

 

[topcropper]

There would also be an oversupply of smaller blocks as according to the Shepparton housing strategy for the next 20 years there is a need for approx 4900 blocks with average size 800 m2, and approx 1600 blocks with average size 400 m2.

Why would anyone be silly enough to cut land up into 400 m2 in Shepparton? That's tiny and why do it?


See ya's.