Hi all,
would like your suggestions/help. If you were going for H&L package (4×2), which area,
Ellenbrook
Anchorage
PT Kennedy
Success
Bertram
Baldivis
MerriwaWould appreciate any feedback on this. It may possibly be a build and sell and try to cash up. Many thanks, Marisa
My 2c has always been to buy next to the water Marisa..
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I am also hoping that someone will reply who has possibly gone through this process a few times
and could give me some ideas.Also, with market changing is this a little risky, as I would possibly be selling on completion?
Would you make money on that? Wouldn’t the interest you’ve paid while construction has happened eat all your profit up?
Me personally, I’m a north of the river girl. Ellenbrook would be the way to go for me. Ahhhh wineries galore!!!
Steph.You would certainly need to do the figures and include all holding costs as Steph pointed out.
I would get an idea of end value from someone other than the vendors agent – they will possibly be quite optimistic on end value – esp given it will be 6-9 months down the track.
Consider holding it for 12 months to get the CGT discount. However tenanting it may well reduce the market you can sell to and may take away that “new home feel”.
At the end of the day you need to take everything into account and make your decision. I have had clients do very well out of this type of project but I think we all agree that the market is softer now than it has been for a while.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Marisa,
Have you considered looking at Vale. It is a new subdivision right next to Ellenbrook but it is a private estate. The land is very reasonably priced and the restricted covenance on each property are excellent – ie, each house has to have a double lock up garage etc…
We have just bought a block there for $115,000 and the equivalent size in Ellenbrook is a little bit more expensive.
Just an idea you might not have thought about yet.
Good luck and PM me if you need any further info.Thanks for your help and comments. Any additional areas that I have left off the list would be appreciated.
As far as CG goes I was advised that I can avoid this by purchasing block (only need to pay $500 deposit) holding for 9 months, then commence building.
Apparently on completion of building you apply to ATO for CG exemption (not sure of form/name)… This is new to me, never heard of this?? , has anyone??
As for would I make money?? dont know, but will find out soon, once I have final figures… Though, I do know people who have made between $25,000 – $50,000 on completion of project homes, they build 4×2 with double garage, aircon etc. and homes are reasonably good quality homes.
I was also advised today that in certain areas the home could be sold prior to completion due to demand.
Thanks.
Marisa,
Someone on here (and I can’t find it now, but perhaps someone else can) made the comment ath you bought a land and building package then the 12 months starts from signing up on the package, however, they said if you bought land and just held it then purchased the building separately then the 12 months would start from when the building was signed up for. I wish I could find the thread but jsut thought I’d mention it as it may be a factor in how you do a project like this. I don’t know the reasoning or even if it was correct but as it was mentioned it’s worth checking out.
Regards
PK
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