Am just about to dip my toe into property investing but not sure which way to go. Have land in mind to put house on (for resale), near Toowoomba. Options seem to be have a) builder do it (high cost); b) put a kit home on it or c) buy a house and have it put on land and do up (owner/builder these last two options). Only drawback to b) & c) as far as I can see, is no builders insurance in case of subsidence or structural faults, which may inhibit buyers. (My brother, who has some experience with building, will help me actual work and contractors and so on.) Land will cost $85,000 for 2 1/2 acres, and sale of homes in this rural Qld area of similar size are currently $230,000 to $320,000. I would need to borrow around $100,000 to do this but I have 100% equity in my own home, valued at $305,000. What do those with more experience think? Option a) is not feasible (no real profits). With options b) or c), worse case senario with finished house only realising $200,000 I figure profit will be in region of $30,000. Am I being unrealistic?
Trudy,
I have looked into putting a removal home on a property in the area you are talking about…And there are alot of upfront costs to this type of investment. It is a great way to make money but may also tie up a substantial amount of funds during the renovations etc.
I would recomment calling the local council and getting advice on costs associated with what you want to do. There may be a certain sum they will require upfront to guarentee that the property meets council standards at the end of the project…This can be thousands of dollars ( I was quoted up to 50,000) depending on the condition of the home you are relocating to the property. There may also be a headworks cost and a parkland contribution, so ask about these in relation to the property you are looking into.
Toowoomba Council was very helpful and you can access lots of information on the website: http://www.toowoomba.qld.gov.au or by phone: 07-4688-6611
Good Luck,
Mapleleaf
Achieve the Dream!
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