All Topics / The Treasure Chest / anyone tried land only

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  • Profile photo of 224013224013
    Participant
    @224013
    Join Date: 2003
    Post Count: 8

    I keep seeing these parcels of land in country tows going for what seems like good money yet I have not seen anything here about land
    aaron

    Profile photo of HaroldHarold
    Member
    @harold
    Join Date: 2003
    Post Count: 80

    Land is often a consideration because you have the freedom to create whatever positive geared scenario you can think of with the new building.
    eg. duplex, multioccupancy, granny flat

    The downside is:
    The land is not in established area known for tenacies
    New buildings cost more than old ones often
    holding costs while building
    Council restrections

    And lots more…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Hi

    Land is booming anywhere along the eastern coast. Many places have doubled in 12 months, some even tripling. Some people ahve purchased multiple blocks ‘off the plan’ and made a killing.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of puissancepuissance
    Member
    @puissance
    Join Date: 2003
    Post Count: 72

    don’t forget to include GST in your cashflow

    Profile photo of ArtyArty
    Participant
    @arty
    Join Date: 2003
    Post Count: 884

    We bought 20 acres in Kyneton early last year, we were going to build our home on it. It cost $90K.

    We changed our minds, due to the time it would take to build and add the utilities to a remote site, and decided to sell and find established.

    6 months later we sold the land for $145K, easy money… then deduct the Capital Gains Tax of %30.

    I still am interested in buying land as a CG investment on the side.

    The only disadvantage is that you havent got tenants to pay your land loan, so you still need to pay the loan out of your pocket.

    Hope that helps a bit..
    Arty.
    [:)]

    Profile photo of RitaSt.RitaSt.
    Member
    @ritast.
    Join Date: 2003
    Post Count: 28

    Yes Terry land IS booming along the eastern seaboard. We bought a block, one(short) street back from the water that every one thought was too expensive at the time. 20 mths ago. It has already doubled in price and we are selling to give us the start to get into +IP’s.
    Consider:
    no income from land is the big down side
    and high interest repayment if you borrow 90% like we did.
    expenses : rates, and regular mowing
    hold for at least 1 YR. 50% less in CGT

    Hint: also look at land with pull down houses insitu. old blocks are usually much larger in area i.e. 900sm. as to new 400-500sqm. With councils policies of medium density living in many areas it becomes possible to turn a profit by subdivision into 2.[:D]

    Profile photo of aj_2aj_2
    Participant
    @aj_2
    Join Date: 2003
    Post Count: 86

    Thanks folks
    that is food for thought saw some land for $2000 thought it may be to good to be true
    aaron

    Profile photo of babsbabs
    Participant
    @babs
    Join Date: 2003
    Post Count: 38

    Hi 224013,

    I’m the same as arty2003 we purchased 37.5 acres of residential property in Knowsley (can’t be subdivided), 25 min from Bendigo Population 70,000, 10 mins to Heathcote (vic) for $31,500 about 4 years ago, we have just sold the property for $95,000 we were rapt, to give you an idea of how we located this property, we saw in the Weekly Times and Trading Post an advertisement for reposessed properties, I rang the number he sent me a coloured booklet of all the properties which have been reposessed by the banks, it was fantastic. We marked which properties we were interested in, rang him and he gave us the address to go and have a look. I think he’s still advertises in the paper, in the real estate section(sorry can’t remember his name) have a look and go for it, we had fun getting away from Melbourne on the weekend go up there, and relax, we also had Lake Eppalock 5 mins from us, to swim and do a bit of boating, it was great. Plus when we were finished with the property we made a great profit.
    I should also tell you, if you do find a property don’t tell you future neighbours how much you’ve paid, that was our mistake, but they asked! all the other properties which were the same size 37.5 acres they paid $60,000 and people get a bit disgruntle when they find out how much you paid. But if you do your homework properly you just can’t lose.
    Good luck!

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281

    Buy big blocks, with a rentable house and subdivide.
    That’s really my only property strategy now, I’ve posted before about this, you still get the income to partly pay the costs.

    Profile photo of mammabearmammabear
    Member
    @mammabear
    Join Date: 2003
    Post Count: 3

    I”m looking at land but am in a different situation than the norm. I have acquired around $80,000 in trade dollars with a bartering company that is just now doing a deal with some land developers in SE QLD near the water. I’m yet to be advised of the cost of the plots and the percentage of real cash to trade dollars but I suspect I could make some money here. This is of course if the land is realistically priced for the area. I will be doing my homework price wise before doing any deals but does anyone know how tax applies to the selling of land bought in the way I’m describing? I have just sold my house and am looking at renting for a while and using my house profit to invest in this land and may be build something on it to rent out or sell.
    Any ideas anyone or comments?
    [:X]Bev

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