Looking for advice on the pros and cons of building an investment property. Currently houses are taking 12-18 months to build. Would it be better to build or to buy an established investment property?Currently live in our house where we have a small mortgage.
This is a fairly long process with money only going out, none coming in. First find & buy land, even using a display house you have to shop around, decide which one, sign up approvals from councils then wait for it to be built with the inevitable delays. Once built you have to carpet, window furnish and then start outside with garden. For my money I would be buying – incoming day 1.
Fern
I totally agree with fernfurn. Get it rented from day one and no hassles with building. Save that for later in the scheme of things.
Wylie
It could also depend on your skills. If running and coordinating a project is your thing there are some good savings to be had when building especially if your really into getting your hands dirty.
I would estimate I saved 50-60k on building my place but I dug the trenches, shoveled the gravel,helped the plumber, stood the roof trusses and battens, did all the painting plus numerous other tasks. Also had to do battle with getting tradesmen at a particular time of the project.
We got what we wanted where we wanted it which was a big consideration.
I enjoyed it but dont think I would do it again like that. Next time around which is soon I shall just do the project management side of it.If you have a busy schedule then as an investment property you may be better off buying something established as fernfurn said money comming in from day 1.
Dave
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