Can some one please advise me about the house and land package? There are some house and land package available in my area in the outer south east in Melbourne. The deal is like that. You pay a deposit of $1k for a house and land package of $270K – $280K. The balance is payable at complition and hand over. It usually takes about 6 month to hand over. Is there a chance of selling the house at a small profit immidiately after hand over? Can I even sell the property before settlement? If so how does it work? How can I sell it to some one else before i get the actual ownership? Any advice and share of experience will be highly appreciated.
Regards
SharifHi guys! still waiting for your feed back about the house and land package.
Sharif
Hi Sharif,
firstly you should double check the agreement, as most house and land packages are set up as a construction loan.
I am not saying that is the case here but worth double checking.
Also when dealing with house and land packages there are some things that need to be checked to ensure a profit is possible.
1. check the market within the area this can be done by going to a research site such as this or this
2. check the company building the house provides a time frame guarantee usually 4broom 2 bthroom home should be about 4 months from settlement.
3. in regards to onselling your property yes you can sell it straight away however if you can wait for 12 months from settlement you will reduce your CGT (capital Gains Tax) by half. ie if you make $50k on the property in 1 year you will only pay CGT on $25k.
4. You have made the right decision in looking for advice first, make yourself very knowledgable and this will reduce the risk.
P.S. 1. research all market area's it is not always best to invest where you live.
2. ensure also that the estate you are buying in has good access to amenities such as schools, shops, public transport etc.
hope that helps
cheerssasharif wrote:The deal is like that. You pay a deposit of $1k for a house and land package of $270K – $280K. The balance is payable at complition and hand over. It usually takes about 6 month to hand over.Regards
Sharifwhat size of land and type of hosue is this ie floor pla nsize number of bedrooms etc
If you can secure it on 1K and dont have to buy the land and get a construction contract and avoid all interest then it might be a good deal. Its easy to check the value of the land and compare the building costs by m2.
So tell me how much for both components and how much is the rent ?
Also would pay to get a Residex projection as the area might be a dud.
Thanks. It looks like I may need to do some more home work.
Sharif
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