Just following on from what I recently covered on this topic, options are extremely useful and when you understand the fine art of how they work you really open yourself to having alot of control and power within the property market. It gives you the ability to control big values of property for relatively minute amounts of cash.

The most important thing is to ensure that your option contract is a good one. You need to get a good option contract that has been drawn up by a qualified property solicitor. You should ensure your legal rep has done the agreements before and has at least 5 years history in the area of property. If you dont have a property specific solicitor then ask your current legal rep if they know someone who has experience in this area.

You dont want to go an get an option, meanwhile get a DA approved, and then find out that your option contract doesnt hold any weight and the vendor has onsold the property to someone else or will now not sell to you.

When optioning property you generally do so for two reasons; to make sure it fits or to come up with the cash…or both!

To make sure it fits you may want to go and get a DA done and then either develop yourself or onsell it to someone else to develop. To come up with more money you may put the contract in place so you can then get your finance together or get investors together to make the deal happen.

Any good property investor or budding developer needs to understand this subject of options inside out, they really are one of the most powerful tools in a developers arsenal!

Cheers, Carly