Background: I'm looking at IP investing in Brisbane in either the Northern or Southern cooridoors about 25km out (along road/rail to sunshine cost / gold coast respectively). Residex predict good growth in these areas.
Question: Is it worth building as opposed in buying in these areas? Has anyone done the numbers and able to provide a rough overview of the value proposition for building please? I am going to follow a acquire & keep strategy (so I'm not looking at selling straight after)
Thanks
Building a 250K+ house on a block of land (200ishK) will save you about 15-20k in Stamp Duty (if you bought a 450K built property) and also there are excellent depreciaton tax benefits.
Land values have risen quite considerably last year therefore you have to spend more time in looking for good deals…they are out there if you look hard enough. Anything that gives you a margin of around $50k should be good enough.
I have been referred a couple of deals with these sorts of margins in them over the last 2/3 weeks.
Richard Taylor | Australia's leading private lender
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