Australia Prime Real Estate - Commercial Real Estate for Sale and Commercial Property for Lease in Australia -Bartercard - Australia Prime Real Estate

BarterCard

"Let's Trade"....

WHY SHOULD I BUY OR SELL PROPERTY WITH A BARTERCARD COMPONENT ???

Sound property investment provides an ideal way to utilise Trade Dollars for long term wealth creation.
By using Trade Dollars for part of the purchase price and minimising the cash borrowings.
In recent times Real Estate has become an important and much sought after comodity throughout the Bartercard network.
As a result, properties from a small block of land to multi-million dollar commercial developments are being sold in Australia.

LISTING AND SELLING PROPERTIES WITH A BARTERCARD COMPONENT.

Real estate offered with a Bartercard component is listed at the same price as the cash market, with a Trade Dollar component. Since the first recorded settlement in 1996, in excess of $125 million dollars worth of property have been sold with a trade component of over $43 million. Bartercard can also provide an interest-free line of credit to approved purchasers. This assists members to build up their Trade Dollar component, which the majority of large banks and mortgage institutions will lend against.

BENEFITS FOR BUYERS

Using your goods and services to purchase property: Bartercard is ultimately the partner which effectively allows you to purchase your property with the exchange of your goods and services, reducing the real cost of the property. The real cost of Trade Dollars in real estate transactions: The real cost of property in cash is significantly reduced when properties are purchased using a trade component. For example if a member’s cost to generate a Trade Dollar is 30 cents in the dollar and a property is purchased for $200,000 with a 35% trade component ($130,000 AUD + T$70,000), the real cost of the property is $151,000. Members who have a lower cost of trade (high margins) have an even lower real cost. This means that the deposit on a $200,000 property has a real cost of only $21,000. Access to Bartercard’s interest-free line of credit: Bartercard’s interest-free line of credit allows buyers to purchase property immediately (conditions apply). When purchasing property using trade, Bartercard can increase the buyer’s trade limit to meet individual needs in raising a deposit, allowing the buyer to pay back the trade component of the sale over time through their goods or services. The interest-free line of credit enables buyers to purchase property quicker without having to save for a deposit. Wealth creation: Utilising Trade Dollars to purchase property is an ideal way to cash convert, whereby properties can be purchased with a trade component. Purchasing property with Trade Dollars is clearly an effective avenue for building an investment portfolio.

BENEFITS FOR SELLERS:

Selling property with a Bartercard component enables sellers to have access to 55,000 members globally to advertise properties.

MOVING IDLE PROPERTIES:

Selling Real Estate with a Bartercard component is also effective for property developers when the property market is slow. For example, a developer had a block of beachfront units on the Gold Coast and when the demand for property declined in the cash market, the developer allowed the remaining units to be listed with a trade deposit of 35% of the selling price. In two weeks six units were sold with a sales value in excess of $3 million.

CASH CONVERSION:

Utilising Trade Dollars to invest in properties can convert cash in a variety of ways. Renovations conducted on properties using Trade Dollars increase the capital value of the property. Renting the property is another avenue of cash conversion as it increases the yield percentage. Similarly selling the property also enables cash conversion.

BENEFITS FOR DEVELOPERS:

Sell properties faster than in the cash market: Properties listed with a Bartercard component are sold within an average of 14 days! This is a much shorter time frame than is generally offered within the cash market. Bartercard Real Estate has over 4,000 registered members interested in purchasing property on trade who receive current listings on an ongoing basis as soon as properties are listed. Bartercard establishing benchmarks: Developers can utilise Bartercard Real Estate to establish benchmark evaluations for their properties. For example, a developer may start a development of 50 apartments and provide Bartercard Real Estate with six of the apartments for sale directly off the plan. Bartercard Real Estate could sell the apartments in a short period of time for the market value without costly upfront sales and marketing campaigns. This saves the developer vital cashflow in addition to providing the developer with an indication of the market value of the apartments. Reduce cash outlay for future developments: Developers utilise the trade generated from the sale of their properties to then purchase new development sites and buy building materials. This conserves valuable cash and reduces borrowings and interest payments. What are the benefits of investing my Trade Dollars into real estate? Remembering the real cost of their Trade Dollars in real estate transactions is the unique benefit. Say, for example, your cost of a Trade Dollar is 60 cents. If you purchase a property for $200,000 with a 35% trade component - that is, $130,000 AUD + T$70,000 - the real cost of the property to you in cash is only $172,000 AUD! The advantages to members with a lower cost of Trade Dollar (high margins) is even greater. Do the math on your own cost of Trade Dollar in an investment property.

HOW ARE PROPERTIES PRICED ?

All of Bartercard's Real Estate listings are listed at the same price as the cash market with a Trade component. In some cases, a current valuation or market appraisal is available, although this is not essential to list a property.

CAN I PAY THE DEPOSIT IN BARTERCARD ?

Yes. Bartercard Real Estate has a registered trust account which holds the Trade deposit for the purchase of the property. The deposit is used as part payment at settlement, along with a voucher for the remaining component of Trade Dollars. This deposit, plus a voucher and the cash, is then paid to the vendor upon settlement.

IF I DO NOT HAVE ENOUGH TRADE DOLLARS, CAN BARTERCARD INCREASE MY INTEREST - FREE LINE OF CREDIT ?

Yes, Bartercard Australia can offer an increase on the interest-free line of credit to approved purchasers. Please ask your Trade Co-ordinator or contact for more information.

HOW DO I OBTAIN FINANCE FROM THE BANK IF IT DOES NOT RECOGNISE TRADE DOLLARS ?

Bartercard Australia has a strategic partnership with financial institutions who offer highly competitive finance packages. These financial institutions recognise Bartercard Trade Dollars as a component of the purchase price of real estate and they are willing to allow Bartercard to take a second mortgage on a property if there is suitable equity. There are also many independent finance brokers in Bartercard who can assist with finance in a Bartercard Real Estate transaction.

IS GST APPLICABLE ON REAL ESTATE ?

All real estate transactions have different GST applications depending on various factors. Please consult your accountant and solicitor on each individual listing.

HOW CAN I CALCULATE THE STAMP DUTY TO PAY ON REAL ESTATE ?

There is an excellent online calculator for Queensland transactions. Visit www.osr.qld.gov.au and then go to the transfer duty calculator.

CAN I PAY SOME OF THE PURCHASING EXPENSES IN TRADE DOLLARS ?

Depending on the area you are buying in, there are many avenues open to you in terms of spending Trade Dollars. Many Bartercard members are involved in related industries such as conveyancing, building and pest inspection, quantity surveying and valuing. Consult Bartercard Real Estate or your Trade Co-ordinator for more information. Stamp Duty to the State Government is definitely not payable in Trade Dollars.

I WANT TO CASH CONVERT MY TRADE DOLLARS. IS REAL ESTATE THE ANSWER ?

Members often cash convert their Trade Dollars by renting the property, conducting renovations using Trade to increase the property value and then ultimately make a capital gain when they sell their property. Real estate should always be looked at as a medium-to-long term investment.

HOW DO I FIND OUT ABOUT PROPERTIES FOR SALE WITH A BARTER CARD COMPONENT ?

If you are looking to purchase and wish to receive email updates on listings, please send your full name and email address.

Disclaimer: this information is a guide and for promotion purposes only. Whilst all care has been taken, no guarantee or warranty is implied as to its accuracy.