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Thanks for the constructive comments Cintaku!
I will definately take your advice on board. I think your right-investors want to know that they are doing the right thing by everyone including the buyers. Obiously in your mind i havent painted a picture which shows a win-win to all. There is definately a win for the buyers as they get home ownership and capital growth so ill improve on that one, thanks mate.Ashley_New Builder wrote:Thanks everyone for your comments. I think perhaps you are making things a lot more complicated than they need to be? My thoughts are to simply build a house to live in for maybe 12 months or so, then sell and repeat the process. I am simply looking at building up equity each time until we are debt free. For example, buy block of land for $300K and build new house for $300K retail value (as a builder the true cost might be around $250K). Sell for $650K. This leaves a profit of around $100K before selling costs. If I used a builder other than myself and paid retail value the profit would only be around $50K. Does this make sense?Ashley,
I am a builder and investor myself. We build houses and then sell them using vendor finance. It has proven to be a very sound business model giving us the initial profit ($10000-$20000) when the buyer moves in and then a very strong cash flow until you get the big chunk of profit in 2 to 5 years time. Good thing is you can spread some of the tax over the years and there are no selling costs.
