Using BarterZone trade dollars in Property Trades
Tuesday 26 January 2010, 12:55PM
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Trade Dollars are creating a stir in the market lately with alot of purchasers offering vendors part payment in BarterZone Trade Dollars and the balance in cash. This happened on a property where the purchase price was $650,000 and the purchaser offered $450,000 cash and T$200,000 BarterZone Trade Dollars to the vendor. The vendor had no idea what the trade dollars was about and sort my advice as I run the property/commercial division for BarterZone Ltd. They called me and I explained that firstly they would need to become a member of BarterZone to recieve Trade Dollars from one of our members but they did not need to become a member until they were satisfied with what they could expect when receiving trade dollars.
In discussing where they were going long term it was established they wanted to buy a section and head overseas and come back and build in five years time. They also wanted to help their son into a business.
I found them a section for $220,000 from another Barterzone member who accepted T$110,000 BarterZone trade dollars and gave them an interest free loan of $110,000 for 1 year.
I found a business owner in our BarterZone network that wanted a partner and accepted T$75,000 BarterZone Trade Dollars as payment which allowed that member to buy more stock.
This left the client vendor with $T15,000 BarterZone Trade Dollars. they paid fees of 4% to receive the initial T$200,000 being $8,000 including GST and 4% fees when they used the T$185,000 BarterZone Trade Dollars being $7,400 including GST.
There were no real estate agent fees involved as it was a private transaction so hence saved $25,000 in fees but paid $15,400 to BarterZone for the Trade Dollar fees so saved $9,600.
This took about 3 weeks and with a bit of advice from their solicitor and account found that if they were happy, it was all good. I got the agreement in writing for each transaction first so the parties could see the benefits to all concerned.
If your business could benefit from BarterZone Trade Dollars we have members seeking products, goods and services and real estate opportunities.
Contact: Terry mob 021 125 1987