Do I build? Do I wait?

Viewing 4 posts - 1 through 4 (of 4 total)

zap
Member
@zap
Join Date: 2004
Post Count: 3
January 23, 2006 - 1:35 pm
I have an investment property in Perth on a triplex site 800m2
but I am looking at building 2 houses 3×2 each. I have had
differing opinions and I am now confused. With building prices
very high do I wait or plunge on ahead.
We bought the property for $85k in 1999. The house is an old
homeswest 3×1 and currently rented for $140/w. The land is
worth about $280k-$300k with the house worth next to nothing.
Any ideas out there?
Cheers Zap
Zap
MTR
Participant
@marisa
Join Date: 2004
Post Count: 663
January 23, 2006 - 2:18 pm
Hi there, can you provide more info, where is the property??
Also why 2 units, if zoned triplex 800?
(Hard work never killed anyone, buy hey why take a chance)
giddo
Member
@giddo
Join Date: 2005
Post Count: 152
January 24, 2006 - 12:47 am
My comment might be of lesser value, as I am a lonng way from Perth.
My thoughts are – Is there a really great reason why you would not fully utilise a triplex block?
I bet there is. You have probably identified a demand for houses have you??
Giddo
http://www.standrewsplace.com.au
KNOWLEDGE IS POWER
grossrealisation
Member
@grossrealisation
Join Date: 2005
Post Count: 1,031
January 24, 2006 - 8:02 am
hi zap
not sure of your rational for 2 houses instead of 3 as the more the higher profit as I see it but you will need to check your figures very well to see which to go for.
your are in a bull market over there so its very important to hit the market at the right time as when and it will the steam comes out of the market and its still got some to run, the pricing will come back to its normal levels.
build times are the main problem in the wa area around perth and have extended out past what I would class as reasonable.so be carefull having said that yes price of materials have gone up and will keep going up they never fall so my advice if your figures are correct start build
2 months ago as 2 months from now the prices will have gone up again.
the chinese and african markets are not worried about our material costs ( as they swallow or products)nor are billiton or rio as they sell them and you wouldn’t be in the heated market if they never bought them its round about we mice play.
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]