All Topics / General Property / Is it worth building new and selling for profit?

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  • Profile photo of sampson_701sampson_701
    Participant
    @sampson_701
    Join Date: 2013
    Post Count: 20

    Hi guys,

    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…

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post 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.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post 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.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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