Property swaps: ditching unwanted assets
Now you can swap real estate you don't want for a piece of eco-estate - new property exchange.
Now you can swap real estate you don't want for a piece of eco-estate that a developer doesn't want.
That's the deal being offered by a property bartering website, recently launched by a developer who says his aim is to diversify his own real estate portfolio.
Ian Meyer, major shareholder in the company responsible for the R3bn Leloko development at Hartebeesport Dam, has launched http://www.propertybarter.co.za/ where he hopes people will engage in bartering in general as well as swaps for property.
"This is where you can swop your flat in Gordon's Bay for a Mini Cooper Convertible if you find a party with the asset that you want, and they want yours," he said.
Or, you can exchange your property or land for developed, serviced land in Leloko Eco-Estate.
Meyer said a "nominal listing fee is charged", as opposed to the up to 10% estate agent's commission, to have your ad placed on his website.
The website can also put parties in touch with valuations' experts and legal consultants to facilitate transactions. The South African Revenue Service needs valuations, noted Meyer, to determine transfer duty/VAT.
If the values of the properties are not equal, an agreement must indicate how the difference is to be paid.
Meyer denied he was struggling to sell in Leloko and said that he wants to swap some of his units for other property because the bank regards his current concentrated real estate portfolio as high risk which means he "loses out on balance sheet".
He said he has swapped about R60m-worth of property for mostly land others were struggling to sell and then decided to launch the concept as a business.
"Most property owners own a global currency that has value and can be traded. The client does not need to apply for any financing - the client uses the currency he/she already owns."
There are many people, said Meyer, who own assets or property they do not utilise. "This can be traded for land situated in one of the property hot spots in the country. They can then convert this into cash or keep it for the great growth potential," he said.
What's the catch, we asked? "There is no catch," said Meyer, with a hearty laugh. "Every developer has their own recipe. Mine is the balance sheet. I don't chase cash," he said.
Meyer said he is a seasoned property developer and anyone who is in any doubt of his financial soundness need simply visit Leloko.
Article from: www.sapropertyinvestor.co.za