I am considering building a house in vic and selling it for a profit. In my area it seems that you can build a house for around $220000, however looking through the realestate guide similar houses in the same area are selling for up to $300000. Am I missing something? are there any hidden costs that I might not know about?
Please helpyes you are forgetting one thing…….Land.
Sheesh i dont understand these people.Sooner or later the man who wins is the man who thinks he can
There may be many other costs not included in the package incuding landscaping, fencing, driveways etc.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
if you dont ask you will never know.
im guessing you have factored the land into your 220k. you need to think about interest costs. ie if you borrow 200k to finance the deal and it takes over 12 mos to build then yr interest bill will be reasonable. aslo you will have
– cpaital gains tax on selling
– stamp duty on buying
– broker/legal costs
– interst cpsts (as above)
– also when building a house you need to factor in 10 pct leeway as bulding very rarely comes in on budget. try a dn get a builder that will give you a fixed quote – and also negotiate a completion time with penalties for delays. timing can be everything..hope this helps
yeah thanks….
oh I was factoring in land
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