All Topics / Help Needed! / Profit in house and land packages?

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  • Profile photo of DilleyDilley
    Member
    @dilley
    Join Date: 2013
    Post Count: 1
    July 13, 2013 - 4:39 am

    I am aware that the land developers make a nice profit from house and land packages but is this an easy way for an investor to make money from simply signing the contract, very patiently (many delays expected!) letting the build proceed and selling the end product?

    We wouldn't need finance so no interest to pay.  But not sure what a completed build is worth in a newly developed area in terms of profit?

    We are in Perth.

    Any thoughts?

    Thanks

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    July 13, 2013 - 4:44 am

    Hi Dilley

    You can turn a profit if it's in a rising market and it takes a while to complete. It's quite a gamble though.

    You need to take into account all the other costs associated with the purchase when working out your profit margin too – such as stamp duty, legal fees, etc. There's also CGT when selling.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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