Hi everyone, My partner and I have recently bought our first property. We are considering building a house to lease 12 months and sell for a profit.
I have researched and come up with an estimate of $250, 000 (incl. land and landscaping) Are there any hidden expenses that I may have left out?This profit will allow us to have finance approved for larger developments in the future. Are we going around this the right way? Is there a faster way of making money sooner?
beth – ‘is there a faster way to make money sooner?. nice double entendre…
have a search of the develpment part of the website and you will see posts relating to costs asscoiated with developing
cheers
Don’t rule out keeping it and avoiding the capital gains tax that you would otherwise pay (even though after 12 months it would be 50% discounted). You can use the extra value in property to secure finance for more deals + you get good depreciation on a new building.
Live, Learn and GrowLifexperience
Hi Beth & wellcome to the forum,
Factor in C.G Tax, selling costs and break costs on finance if applicable, have you consider the option of holding and accessing the increased equity for future investment? cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Life X, Snap..
Good point on the depreciation, cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks, guys for your responses.
I will look into a few different mortgage calculators.
-Beth
[email protected][biggrin]
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