Tax Sale Forum > Properties for sale

Looking for large acreage hunting land

(1/1)

Jayz:
100+ acres, no more than 4 hours driving distance from Toronto.
Please PM or email details. Thanks.


BTW, property 2 here is still up for sale OR TRADE  ;)
http://taxsaleproperty.org/forum/index.php?topic=816.0

Dave2:
Your property 2.  What do you want in trade?

Jayz:

--- Quote from: Dave2 on January 05, 2011, 03:50:02 PM ---Your property 2.  What do you want in trade?



--- End quote ---

Dave2, what I meant by "trade" is simply that you buy mine and I buy yours.

Dave2:
Jayz:

My point in this one is the issue of cash versus non cash trade.

First as a starting point I will assume all taxes will be paid in a fair and prudent manner.

You have an income earning asset and as a result financing is more readily available then for example rural land.  Without getting into your personal situation let us assume for illustration that your property has a value of $250,000 and there is a $175,000 mortgage on the property. 

Let us assume I offer to trade you some rural land of equivalent value (thats a whole other issue in terms of the trade) that is debt free.  Realistically the best you can likely hope to refinance it is at 50% loan to value and probably at a much higher interest rate.

Thus at the conclusion of the trade  we have the following situation:

a) I have an income earning asset that is much more liquid. The problem for me is that
all my holdings are in one asset.  Paraphrasing a famous saying " Man who have all his eggs in one basket better take care of that basket"

b) The advantage for you is that you have a number of assets you can sell or dispose off.  The problem is you have to come up with some additional cash to cover the mortgage. 

If both parties to a trade are debt free it is one situation.  If someone has a mortgage it gets more complicated because we have to remember how much cash do you have to
come up with.

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