what I would like to kno is what sort of percentage profits are atchievable out there in regards to the completion of a house or development of some sort and the valuation on completion.
Sean Chinnery
Gees Sean – how long is a piece of string? I know of guys who really know what they are doing to buy a block and resell it a couple of months later for 100% profit. I know developers who claim to know what they are doing being lucky to break even (and often lose money) after two years of working on a project. Your typical margin use to be 20% gross on a project, but these days developers are letting that slip down a little towards 15% as things get squeezed (land owners selling with profit already being built in, rising building costs and a flat resale market). The trouble is the second hand market is looking so cheap now compared to replacement cost. Old development stock that is just coming onto the market is also very competitive as they are constituted of land fom a couple of years ago and buildign contracts struck 12 to 18 months ago.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
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