Hi All
What would those with more experience than myself (newbie to IP’s) suggest when it comes to sticking with land or building on it and then selling what you build. For example we have land that can be subdivided in to 4 good size building blocks… should we just sell the blocks of land or build homes on each and then sell?
Thanks all, I look forward to getting some feedbackEvery project is different depending on the outcome of the feasibility. i.e add up your costs for the land, analyse the market to ascertain what you could sell it for to find out the possible profit. Be sure to include holding costs against the time it will take to sell. Then do the same again only this time include construction costs & construction time. Compare the two profit amounts and decide if the extra work of construction is worth the additional profit – if there is any. You could also check to see if it is worth holding onto a property when considering the rental yield.
Someone on the forum was saying just sell the land, don’t bother building the other day, because he’s in the same position.
It’s really upto you and would definately require more research so you know the best path to take. You could always sell 2 and have a go at developing the others, or if you dont need to sell you could sit on them for a while. Imagine what they might be worth next time we have a boom?
If you are a builder sure, or if there is %30k or more profit in each one sure, this is taking into account that the homes will probably cost 20-30
percent more than you estimate to finish properly.
I have been in the building industry for 25 yrs and have seen first hand the stress it can cause, the extra time and money it can cost.
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