Ben5Participant@ben5Join Date: 2015Post Count: 2
Im trying to think out side the box and come up with a quicker investment return if there is such a thing. I’v been trawling the net for information but have not found anything of substance.
– What i’v been thinking is putting as small deposit as possible on a bloc of land, and when it finalises and registers sell it hopefully at a profit.
Im building two new houses in Queensland at the moment and i could not help but notice when my land finally registered it had already grown in value by 10%.
Does anyone have any information they could pass on, or put me in touch with the right facilities to do this? Or is this a bad idea?
I’d love any feed back,, thanks..TerrywParticipant@terrywJoin Date: 2001Post Count: 16,173
don’t forget stamp duty and you will be taxed as income with no 50% CGT discount even if held more than 12 months since exchange.
You also need to be able to settle in case you cannot find a buyer.Ben5Participant@ben5Join Date: 2015Post Count: 2
Thanks Mayor Quimby.Just trying to get a little creative..BuyersAgentParticipant@knightmJoin Date: 2005Post Count: 317
I think in a strongly rising market you could win with this strategy, but be careful to only commit to blocks you can afford to settle and hold, because if something (like APRA, GFC etc) happens in the mean time you could be left holding an asset you can’t sell quickly. The profits will be small given costs of sale as mentioned above unless the market is also rising. If you are into that sort of thing and already building houses why dont you go one step further, buy a big block, do a 3 or 4 lot subdivision yourself, put in services, get the full profit margin on the blocks then sell a few and keep and build on a few? Just sayin…
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