Yesterday I had the unfortunate situation where I had to part with $216,000.00…
I say unfortunate because I didn’t physically get anything for it….
All it would have taken to make me smile would have been:
- A bottle of wine
- Some flowers
- A thank you card
- Or a box of chocolates — to say thanks for paying $216,000!!!!
But I didn’t get any of that…
All I got was a receipt saying that I’d paid it…and then pooooof!!!
The monies disappeared into the ether!!!
In 2006 my wife paid $350,000 for a house….
In 2007 I bought a block of land for $348,000….
In 2004 I bought a duplex for $177,500…..
I could have bought a very nice 2nd hand FERRARI or BENTLEY with $216,000!!!
Yesterday I paid the horrid thing developers know is inevitable…
CONTRIBUTIONS…
AKA DEVELOPER’S TAX!!!!!!!!!!!!!!!!
It was inevitable I had to pay it so I could get my titles for my land subdivision , so really I had no choice…
And this is one of the factors that kills deals, council costs are the same whether you’re developing in cheap areas or expensive areas.
In this instance it was MORE THAN 10% OF THE SELLING PRICE of the land!!!
Add onto that GST, agents commissions, holding costs, legals, where is the PROFIT THEN?
That’s the secret to it all..
Here’s another video in the Finding Cracker Property Deals video series…enjoy!!!
To check out this 1 minute video go here:
http://www.advancedpropertystrategies.com/findingdeals-3
Til next time,
Nhan
