Afternoon everyone,
Who here has had experience or is having an experience with buying some land and building one of the above things? My partner and I are selling both our houses and wish to be full-time property investing by May next year, ambitious i know, but not apologising for it! [biggrin]
Anyway, we are thinking of doing one of the above things (duplex/triplex/townhouses) by buying the land now and getting all the building organised and ready to begin when a house of ours in sold.
I just wanted some experiences from people, did you have a good experience doing this (profit-wise) or bad???? Is there another suggestion you may make (i.e. sub-dividing or spec home) etc etc… anything you can add would be much appreciated.
Thanks for reading this far if you made it! [biggrin]
Denyell
Ive done a bit of that but the market is changing where Ive done it. Dont be afriad to buy recent sales reports and walk the streets to compare the product you will be doing to what has recently been sold, Factor in everything, even the interest payments during the contrustion cost forms part of the building cost. If it is predictable that there is a dollar to be made, dont forget the agents cut and capital gains tax, then go for it but remember that you do not need to sell to take your profit. If structered properly you and depending on the new value you could refinance, take out your initial deposits, not pay tax, rent the property out and repeat the process. If you need more help you can PM me.
Freedomfighter,
Thanks for the reply, much appreciated, we believe that where we live (Sunshine Coast, SE QLD) there is still some money to make, however, you make a good point in re-financing to ‘go again’. Do you do this full-time? Also, a dumb question…what do you mean by ‘PM’ you?
Denyell
Hi Denyell
PM means Private Message.
You click on the PM button at botton of message, type the message you want to send to the recipiant and press post new reply.Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
I do it every 6 months or so depending if land is registered or not, but I dont do it full time as I have no building skills, I usually contract the work out to liscenced builders. Remember, start small and think BIG unless you got balls, but carefully study the market and make heaps of low offers on land as they are not selling as hot as they were 12+ months ago.
Where about in sunshine coast are you and whats the price of land.I’d always been of the impression that “species” were for builders and tradespeople. Is there enough margin in them for “laypeople” to take them on? (Freedomfighter?)
“I’d always been of the impression that “species” were for builders and tradespeople. Is there enough margin in them for “laypeople” to take them on?”
Good point Marney, a mate at work was talking about doing the same thing and I questioned the same as you.
I suppose if the market is running hot then you can make some $$ but at the moment when its flatter it would have to be less rewarding. If you kept it and made it +cf
Althought with duplexs/units you can rent them all out for multiple incomme streams. Check whether you could also sell these seperately as this might be an option.
Matt
A good idea is dual occupancy, buy a house that can earn you rent now and get a relocatable for the back. Dont skimp on the job, steel posts with the screw top, full height for options later and then get it tenanted asap. You pay a bit more in rates but 2 incomes in one title awesome.
Problem is the site has to be big enough to get the approval for the back. Allow for things like sloping blocks near river have a limit as to how far you can build etc.Research then act.
Happy hunting.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Thanks for all the thought and replies, much appreciated.
Also what I actually meant by full-time was not doing the building ourselves, but buying & developing and selling and renting full-time. Property investing full-time.
Currently we are leaning towards selling the IP, and using that money, and some equity to guy some land and build a duplex/triplex. From there who knows, it will depend on the individual figures.
Is there anyone out there we could crunch numbers with via PMing when we find specific land etc?
Cheers
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