A friend of mine recently showed me this land for sale and I was wondering if it was a good oppurtunity or not. I have little experience with real estate in general and no first hand experience with developments. Basically the specs are the following:
Land of 714m2
Approximately 5 min walk to the nearest beach
Located near Nowra (3 hours south of Sydney)
Approved plans for 2 x 3 bedroom 2 bathroom townhouses available
For sale at $165,000He is planning at buying the land, building the townhouses and renting them as vacation homes. Other places in the area seem to be available at $150 a night at winter rates, much higher in the summer.
We asked a relative for some basic advice and got back prices of construction to be $1500/m2 building space, $20,000 landscaping and $10,000 connecting services. All up would be approximately $500,000 to build both the properties. Does this sound realistic and feasible? Also how long would it take to construct both the properties, I would assume 9 months to a year but I could be way off.
Having a general look in the area, seems to be able to get a price of about $450,000 for each property at the end, if he was to sell them instead of holding on and renting it out.
Overall, does it seem like a good investment? Is there anything significant I have missed or underestimated?
Culburra ???
Yes the land is in Culburra, I couldn't think of the suburb when I was first typing it up and my friend just told me it was near Nowra.
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