Greetings and Salutations!
Some time ago I purchased a block of land for a real song. I know now that I must build to turn this aquisition into a true investment.
My dilemna is “Do I build or Buy another property first?” I am currently renting.
I am very new at this and find sleep is at a premium. I have no idea if this is because of information overload or realisation that a dream is finally being fulfilled.
What is the best direction from here?
[confused2]
It comes down to return on your investment dollars.
Will you get a better percentage return by selling block without house on it or by building and selling/holding with a house on it?
Having said all of that the information given so far is somewhat limited so the responses will be a little superficial too.
For example what are you investment plans, have you the financial capacity to borrow (and support the extra borrowings) for additional property and/or to build something on this block of land. How long have you had the block andthe expected ‘profit’ margin and whether or not more growth is expected.
Derek
[email protected]Property Investment Support Available.
I agree there’s not enough info for a sensible answer.
Some land is worth buying to build on later, other is not worth buying at all, yet another should be built on yesterday. I wish now I would have a parcel of land I sold at a loss in Sydney around 1989-90, due to high interest rates, business problems and lack of foresight on my part.If I’d either built&sold then, or just kept the land ’till now, almost the same result would’ve been achieved. My funding requirements would’ve been quite different, though.I may have been able to do it one way, but not the other.
Regards
first choicefirst choice
Don’t forget stamp duty and cgt when working out for yourself which way is the best way to go. Personally I would develop the block of land. Borrow against the land to build on it, and if nec keep borrowing against the improved value as you go. The learning experience alone will make it all worthwhile.
If you sell the land you will have to pay cgt on the sale and then stamp duty on the next purchase.
Develop and rent out and you won’t have either.
Julian.
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