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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST
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To: elmatador who wrote (13827)1/26/2007 1:59:00 AM
From: energyplay  Read Replies (2) of 218072
 
Do people in Brazil do real estate options ?

Often a large developer in the US will buy an option to buy a tract of land for for future fixed price.

Let's say the current market price for 10 acres might be 200k

A builder will approach the land owner, and ask for a 5 year option to buy the property at 250k. The builder pays the landowner maybe 10k for this option.

If the value of the property goes way up, say to 400k, the builder will exercise the option, pay the land owner the 250k, and then build houses or offices or whatever.

Or, the builder might just sell to the property to another builder for the 400k.

If the value of the land doesn't go up enough, then the builder is only out the 10k, instead of 200k.
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