sampson_701Participant@sampson_701Join Date: 2013Post Count: 20
Asking for a friend and curious myself. Wondering your thoughts on buying off the plan in a new subdivision and then selling on completion… I’m not a fan myself as there is continuous supply as the development continues to expand, but guys are buying for $450k, waiting 16 month for build then selling for $550, then there is CGT I presume. What’s your thoughts, is it worthwhile? I’d rather buy closer to city and ronovate personally…TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
If you can sell and make money then it may be worth considering, but there is a fair bit of risk involved. What if values drop and you cannot sell for example.BuyersAgentParticipant@knightmJoin Date: 2005Post Count: 330
Supply and demand is going to guide end prices. If there is continual supply of cheap land then the only gains are from construction costs rising. I would rather target limited supply locations (more commonly established areas) close to big ticket drawcard items that people want to be close to like train stations, beach, etc. Regular resale of new built homes will attract income tax too, better to buy and hold income producing investments for period of time to get 50% exemption on cgt.