Hi,
I have 2 blocks of land in QLD.
I live interstate now.
I bought it 7 years ago for $150K each. Both around 2500sqm. It posses excellent views.
It’s worth around $250K or so? But I was thinking if it is better to build a 4×2 house on it then sell or just sell the block and take the profit. Which method is better for investment returns ?This is a very general question and it depends mostly on your situation and what you want. You need to determine what it is that you want first. Do you want a quick and easy buck, more bucks but not so easy or do you want a long term investment?
If you want a quick buck, sell now, pay the capital gains tax and walk away with your cash in hand.
If you want a higher return but more time, more investment and potential downside then develop and sell. You’ll need to qualify for the finance to build and service the progress payments for the duration.
If you want an easy long term investment then sit on the block as I assume you’ve been doing thus far and wait for the capital gains.
For greater long term gains develop, rent the places out and use the rental to service the debt, wait for capital gains.
This is general advice only, you’ll need to speak to an accountant or other professional for advice tailored to your situation.
Tom@SadhanaConstructions | Sadhana Constructions
http:\\www.sadhanaconstructions.com.au
Email Me | Phone MePerth builders of developments and bespoke homes
Further to what Tom has mentioned, it will also depend largely on whether you are able to secure finance to do a build. If you cannot, then building is not an option anyway.
Maybe do a bit of a look into that to see if you are eligible for construction finance or not.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Jacqui & Tom ,
Thanks for the advice.
The problem is I bought the 2 blocks by cash. There is no loans on it.
Hence, just paying the rate and Water rate but no income.
So was thinking how best to manage the money to another property or let it sit there.
Do I need the money – Can say Yes or No, dependsThe other issue is, being inter state, it’s hard to construct and having to rely on unknown builders to do a good job.
And the horror stories if you are not there to monitor the construction phase.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
