A client who pays the full purchase price now risks a total of AUD 21, 630 that is (AUD 19,110 and at least initial conveyance costs equivalent to AUD 2,520) if the transaction goes wrong for whatever reason. However, with Land Options, the stress-free payment of AUD 465 per month means that all one risks on the 1st month is only AUD 465 and AUD 4,620 on the 10th month. Since cost of land acquisition is postponed, a loss for whatever reason on the 1st month or 10th months limits the risk to the payments made.

What that means is, if the property appreciates in value for the next 2 years, then the equity created is wholesomely the purchaser’s. Remember, the buyer shall not pay any bank interest because there is no need to get a loan for this acquisition. Whilst the equity created remains the reserve of the purchaser, the vendor continues to incur land rates until the day the purchaser exercises their right to purchase the parcel of land before the agreed expiry date. Mandatory costs of acquisition will only be settled after the purchase price has been settled at the agreed future date.

For instance, if the Sale price is AUD 19, 110 for 1/8 acre of land to be settled in 2 years, the client only pays AUD 465 per month for 10 months. The buyer who opts to seek finance or pay for the land upfront will also have to immediately pay for some of the costs of acquisition including initial costs of the finance application. By the end of the term all costs including bank interest may be well over 45% of the Price of Land (AUD 9,660). The least amount required to meet the initial expenses excluding the 2-year interest may be AUD 2,520. Assuming this parcel of land appreciates to AUD 23,310 in 2 years, then it is right to say that the equity created is AUD 4,200 for the 2 years the client held the position. Remember the purchase price was AUD 19, 115 but the buyer only paid AUD 4,620 (10 instalments of AUD 465). What this means is, AUD 4,620 gave a yield of AUD 4,200, a remarkable return on investment of 45% per year. The customer who purchased upfront pays AUD 21, 630(19,110+ 2,520). This means the investment of AUD 21, 630 yields only AUD 1,680 in 2 years’ equivalent to a low yield of 3.9% per year.

Land Layby Australia Pty Ltd gives our buyers the chance to own properties with the little they have from the wide range of products that we have.