Hi All,
I am a newbie, I am looking at buying a subdivided block of land at the rear of the property in the eastern suburbs of melbourne. I am unsure because of the value I am paying for it and the return on investment. Also the property has been in the market for a long time.
appreciate any help or guidance.
cheers
newbie
+
on market a long time
= fatal (financial) combination.
Hi there,
What did you intend to do with the block? Have you had a chat to council and a local draftsperson about whether your plans would be possible? Have you had a chat to some builders to understand how much your construction would cost? And a mortgage broker to understand if you could get finance for such a construction and at what interest rate?
The results of such investigations might show you why it's been on the market a while. It might cost too much to build on the block to make it worthwhile.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Great post there by JacM – couldn't have said it better! I can assure you that if it was a fantastic buy then one of the many developers in Melbourne would've snapped it up by now.
If you're wanting to make sure of the numbers, speak to more than 1 draftsperson / planner / designer and then add much room for additional costs and go from there.
Why not buy a block in the eastern suburbs, subdivide that and then sell one or both of the new lots?
Cheers,
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