I have found some land for $1000 in WA.
What are your thoughts??
Thanks guys!Thoughts on what? Size, location etc would be helpful in allowing people to give you an answer to a question you may be asking
“Looking forward to the day when I can tell the boss where to go”
I’m sure there’s lots of land in WA for $1,000 or less…
Much of it is desert & a long way from infrastructure.
Building property in these locations is pretty close to worthless.
There are also some councils that have been selling land really cheap (or even giving it away) with condition that you build within a certain timeframe & occupy the property for a certain number of years – is this one of those?
Tell us more about where the land is.
Cheers,
Aceyducey
As acey said lots of land either cheap or free with certain restrictions. Even if you find an area where you aren’t required to occupy the property you will find that nobody else wants to occupy it either.
Might sound cheap but what good is it to you?
Nathan.
The thing you have to watch is the cost of building.These areas offer cheap land because to a certain extent they are isolated.But if you look at the price of building you will find that it is cheaper by half to buy an established house in the same area.
For example;I live in Dongara WA.It is on the coast and land starts at $60 000 It costs about 70 000 to have a basic kit home built.When you add in the extras like sewerage and fencing and gardens you could be up for about $150 000.
Now just 30 mins drive east is the town of Mingenew.Here you can buy a block for $2000 and build same house for $70 000 etc. Total cost after extras about $100 000.
But you will still only get $130 p/w rent for either of these properties.
Now if you were to buy an established house in Mingenew you can get a very nice one for $50 000.
And get $120 p/w rent.
So in my opinion anyone who bought land and built on these cheap blocks would be going backward.
You would be better off buying two or three properties at $50k a piece and receiving up to $360 p/w.
Thats my 2 cents worth.It doesn’t matter how much the land costs, after loan repayments, rates etc unless you have a tenant it’s going to be a -ve cashflow property.
If you are considering building then you have to weigh up the “opportunity cost” of lost deals as you take your eye off the ball – so to speak. That is, the time spent on building could be better spent locating +veCF deals.
Cheers
Jeff
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