Is it worth building new and selling for profit?

Viewing 3 posts - 1 through 3 (of 3 total)

sampson_701
Participant
@sampson_701
Join Date: 2013
Post Count: 20
March 23, 2016 - 11:20 am
Hi guys,
Asking for a friend and curious myself. Wondering your thoughts on buying off the plan in a new subdivision and then selling on completion… I’m not a fan myself as there is continuous supply as the development continues to expand, but guys are buying for $450k, waiting 16 month for build then selling for $550, then there is CGT I presume. What’s your thoughts, is it worthwhile? I’d rather buy closer to city and ronovate personally…
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 23, 2016 - 12:12 pm
If you can sell and make money then it may be worth considering, but there is a fair bit of risk involved. What if values drop and you cannot sell for example.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
BuyersAgent
Participant
@knightm
Join Date: 2005
Post Count: 338
April 2, 2016 - 2:18 pm
Supply and demand is going to guide end prices. If there is continual supply of cheap land then the only gains are from construction costs rising. I would rather target limited supply locations (more commonly established areas) close to big ticket drawcard items that people want to be close to like train stations, beach, etc. Regular resale of new built homes will attract income tax too, better to buy and hold income producing investments for period of time to get 50% exemption on cgt.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone Me
South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au