Bartercard Real Estate

How It Works

Buying

By using trade dollars for part of the purchase price you can reduce your cash borrowings, thereby reducing interest costs. This may result in the property being positively geared, providing both cash income and capital gain.

Sound property investment could provide an ideal way of using trade dollars to achieve long-term financial prosperity.

Because Bartercard members earn trade dollars by the provision of goods and services to other members, the actual cost of their trade dollar can be less than a cash dollar. This can result in a margin (or purchasing discount) to the buyer on the total purchase price when buying a property.

A typical example:

Purchase price
$500,000
Cash component @ 75% of the purchase price
$375,000
Trade Dollar component @ 25% of the purchase price
T$125,000
Cash cost to generate trade dollars @ 60c = T$1
$75,000
Margin (or purchasing discount)
($50,000)
True cash cost of property
$450,000

As the example above shows, by leveraging their gross profit margin, the Bartercard member has achieved $125,000 equity in the property with a real cost of only $75,000 cash!

Bartercard may also be able to offer you an interest-free line of credit - this could give you a fantastic opportunity to purchase a property without major cash outlay.

If you are not a Bartercard member but would like to know more about the benefits, simply call 1300 BARTER or email property.listing@bartercard.com.

Selling

Bartercard Property offers vendors a cost-effective marketing strategy that can achieve a quick sale and is more likely to achieve the asking price as the purchaser is already receiving a discount by using trade dollars as part of the purchase.

By marketing your property through Bartercard your listing has the potential to attract the attention of thousands of business owners - many of whom are looking for investment properties.

Vendors promoting property through Bartercard will often achieve a quick sale at the best price with the versatility of either using an agent, or selling yourself.

For property developers selling a new development off the plan, initial sales via Bartercard Property can set high benchmark prices, this is because as Bartercard members, by leveraging their gross margin when using trade dollars to purchase property, are generally willing to pay the asking price.

From a developer’s point of view, selling property on Bartercard can assist with pre-sales of their development to source finance and reduce holding costs, sell slow-moving stock and maintain their margins.

Furthermore, using Bartercard Property as a marketing tool can also reduce the number of unsold units at the end of an otherwise successful development. The following example shows how effective marketing through Bartercard Property can be.

"A developer was marketing a townhouse subdivision in Sydney. To expedite the sale of all units in the development, the developer listed the remaining units with a trade dollar deposit of 30% of the selling price. In only a few months the entire development was sold-down with Bartercard members purchasing a large number of them, and without the developer having to reduce the selling price on the less attractive units!"

Another major advantage to vendors, is that sales can be achieved without excessive marketing costs. The only costs involved when selling a property through Bartercard are the normal transaction fees charged on the Bartercard component only.

Bartercard Property provides a platform to introduce buyers to sellers. Bartercard does not participate in the negotiation process between buyer and seller.

Disclaimer

The information on this website is general information only. Accordingly, this information does not take into account your investment objectives, financial situation and particular needs. Before making any investment decision based on the information contained in this website you should consider talking to a financial adviser, and assess whether the information is appropriate to your particular investment needs, objectives and financial circumstances.

Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice.

Sound property investment could provide an ideal way of using trade dollars to achieve long-term financial prosperity.

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