Hi,
I have an issue and like to seek everyone’s view on which is a better investment solution – i.e.building a house vs leaving the land undeveloped?My concern is if I build, I may be overcapitalised the property. If I don’t build, the demand for land in that area is poor.
Why do you think they are your only choices?
Sounds like either option is unattractive so why not consider option 3?
Sell the land and buy something that improves your current situation.
Simon Macks
Residential and Commercial Finance Broker
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Well, that’s another problem. The demand is not that encouraging as predicted.
The place has good highway (35 min to CBD), train services, schools, near melbourne airport, plenty of green and it is a forwarding industry hub for Victoria.
Just don’t understand why the demand is better at north eastern area than the north westen area.
Hi Tomtkb,
What is the tenancy situation at the moment and how attractive are rents? At least if you build and get a tenant you will have some incoming cash to support your debt (I am assuming you have a mortgage). If you are worried about over capitalising just build something basic.
Todd Burns
http://www.freepropertyhelp.com.auThe Rental market is average but a basic house would cost abt 260K while the median price is about 230K (land and house)
Tomtkb,
Are you saying that a basic house would cost $260K to build or does this include what you paid for the land?
Todd Burns
http://www.freepropertyhelp.com.auHi Todd
The price quated is just for house, kitchen cab, landscaping, carpet .. not inclusive of the land.
Tom
Hi Tom
How many quotes have you had – it doesn’t sound cheap for a basic house to me unless the landscaping is very expensive. Did you look around display villages to find the best value? Does your quote have a breakdown to show the cost of the building seperately to the other costs?
Sparky
How much would a basic house cost in Melbourne now say :
4 bedrooms 2 bathroom. Single storey.?Any developer would like to advise?
Hi Tomtkb
Can’t help with Melbourne but we have just completed a 2 storey 4 bed 2 bath dble garage home built by a Sydney builder for basic cost $164,000 plus site costs and a few variations bringing it up to around $185,000. We are about to commence on the other half of the block a single storey with base price of $93,500. The same company has good prices on duplexes starting at around $174,000 for the pair.What is the base price on the house you have been quoted for? If you contact Michael Yardney he develops in Melbourne and could probably help you out.
Sparky
Hi Sparky,
Thanks – I do not have a break quotation, only lump sum. I.e. Cost of the House, landscaping, Kitchen Cabinet, build in wardrope and lights.Hmm I guess the non basic came out to be hundred K. Is that right?
Regards
TomHi Tom
When I said basic cost I was really meaning for you to include things that normally come with a project home such as at display villages, their prices generally include things like wardrobes and kitchen cupboards and not things like carpets, light fittings and landscaping. Before you go ahead and sign up with your builder be sure to shop around and compare what he is offering you with what would be on offer with a project builder. What is the size of the house you hae been quoted on? If the house is $100,000 then $160,000 on landscaping would be massive!
Sparky
Hi Tomtkb,
I got a quality 4x bed, 2x bath, 2x garage house built in QLD about 18 months ago for close to $150K complete with everything required to get it to tenant walk in stage (even had a garden auto watering system and remote garage door).
I would be very surprised if you could not get a complete package for under $200K from a VIC builder. Try http://www.metricon.com.au (they were my second choice) and i know that they are originally from VIC
Todd Burns
http://www.freepropertyhelp.com.auThank you so much – I shall give it a try and let you know the outcome later.
TomI have manage to check out the website, the prices is about 140k plus basic house – no paving, carpet nor landscaping.
Would paving, carpet and lanscaping cost up to 100K?Regards
Tomer..no[blink]
Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
What would be the % ratio for the additional? i.e. Basic vs basic plus paving, carpet, lanscaping
Tomtkb,
Why don’t you ring up Metricon and ask them what a complete package would cost?
Todd Burns
http://www.freepropertyhelp.com.auYes I have and waiting for response.
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