Buying Investment Property the Hard Way

We had a client interested in buying investment property at North Lakes but decided to do everything himself rather than using our cost-free service.

How did he go?

Not good at all. First, the only blocks available were under construction and not accessible, but the salespeople were not even interested in speaking to him about buying an investment property unless he was in a position to sign an unconditional cash contract or show evidence of financial pre-approval.

As you may or may not know we buy our land in advance from the developer using a “put & call” system where we pay $2K for an option to purchase then the client pays $2K to the developer and pick up your option.

In this way, my clients buy direct from the developer at our builder’s price and eliminate sales commissions and double Stamp Duty, but at North Lakes that is now about to end.

The development of North Lakes is in its final stage and because demand is exceeding supply even we will soon be restricted to unconditional cash contracts.

The negative of this is that it would cost our clients more due to double Stamp Duty and holding costs.

The solution

While we can continue using our option system at North Lakes we will do so, but if we have to incur further costs, there will be no more at North Lakes.

We currently have a block at North Lakes packaged as a SMSF Purchase with a client in the process of buying it.

For those interested in buying investment property the easy way, we still have stock at Stone Ridge at Narangba and North Harbour but it is getting scarcer and more expensive by the day. Contact our office to schedule a free, no-obligation consultation.

Steve Taylor

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