I have close friends who have purchased several blocks of land, had home built, and resold them for considerable profit. They have assured me that each house reaps around 100k. I would love to give it a go, and looking at properties in my area (Brisbane North) it really does seem feasable. I don’t want to get burnt though. Has anyone tried this avenue? I would love to hear from you – any suggestions, for or against would be helpful. Thanks in advance. Kayleen
Kayleen
This is a great strategy and many have made excellent profits.
These profits were largely due to rising land prices during the construction phase. Now that the market has normalised it will be harder to duplicate these results.
Currently you will find that due to increased land and construction costs you would barely make a profit. As an example :
Northside land……….$150 000
Construction cost…… $150 000
Purchase costs……….$ 10 000
Holding costs………..$ 10 000
Total……………….$320 000Property value……….$350 000
However once you add selling costs and taxes you barely break even.
Having said that we are currently involved in 10 projects in the northside which will give a profit of around $90 000 in 7 to 8 months.
Regards
Sailesh
http://www.developersedge.com.au
130073 5934
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