Folks,
Very new to the world of property so please pardon any ignorant statements:)
I have two blocks of land of 500sqm plus in yangebup WA. The growth has astounded me as I ourchased my first block for 190k in september last year and last week was offered 330k for it which i was fairly pleased with. I also have another block roound the corner and am at the stage where i am wanting to consider my options.
The one thing I dont want to do is sell anytime soon. Can anyone out there tell me what i should be doing with these 2 blocks of land and why.
Obviously options are build and sell, build and rent out or just leave them as vacant land until the marina is up and running to fully realise growth potential.
Would appreciate anyones thoughts on how to proceed.
Thanks
Do you already have titles? If so, why won’t you flick em and move on to another deal? People are paying a premium for titled blocks ATM. Bear in mind that most new estates in WA at the moment have plenty of blocks that are held by investors with much paper profits. Will they be able to settle and hold should the market take a turn? 3 years ago, who would have thought by only putting $1K deposit down you can settle in 12 months time and make a killing such as what you have done. Wow, its easy isn’t it? However this is not the norm but the exception. A lot of newbies in WA could be caught up in the hype. Do they know the ramifications of putting down cash offers just to secure the block in hope that the market continues to rally and another woodduck will be round the corner to buy it off em? I am aware of one individual whos interested in doing a deal as he has the land but can’t access the equity as titles aren’t out yet. I doubt he will be in a position to settle either. He might do OK as he bought into earlier stages.
Not many people can afford to fund the monthly cash flow on $200k empty blocks of dirt. Once Dola gets their act together and imagine if you had to settle 3 or 4 of them and no one could? Thus putting them all back on the market.. all at once? I hear recent stage releases have over 50% investors lining up. EOIs are taken in the name of their mum, dad, spouses, kids, dogs….
If you built, it will take 12 months and you will only receive about $280 per week rent. Even then it will be around $220k turn key.
However the momentum is still there in WA ATM and will continue for the rest of the year but it certainly will be interesting times when cab drivers and every man on the street is now a property investor, sorry I meant land speculator.
Good luck mate.
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