Me and Mrs brought a 492 sqm land , battle axe shaped , unshared driveway ( approx 100 sqm) for 455,000 ( 390000 loan ). Property is located in Marsden Park across the road from where Bunnings / Masters are. It was a quick purchase and like many things in my life , I was completely focussed on getting the sale thru prior to this New Year's. Having said that , I feel scared now for 2 reasons : 1. Shape of land ( I read in some forums that BA shapes lands should be discounted. Our's seems to be discounted but not too much) 2. Potential of growth in Marsden Park - concerned that i have brought close to a bust or a peak. My goal is to be able to sell this land ( perhaps after constructing a house on it ) by 2019 with CG. I want to use that CG towards a deposit for a place to live closer to the city. As much as writing this post has helped me clear my head , I am seeking opinions/thoughts from forum members regarding this purchase . Have I made a terrible financial investment or an average/good one ?
It's hard to say based on just the type of block, particularly without researching the suburb and pricing. There is still value in some of those western suburbs and all the talk of Sydney being "at or near its peak" doesn't take into account that there are always markets within markets. Provided you didn't overpay for the block and run a feasibility study on the construction (and add a margin) I personally doubt you will lose money. My main concern for this purchase is that you've settled on it at the start of 2017 and want to sell it in 2019 which is a very small time horizon if you don't end up building on it. To make money in that time frame you're either going to need prices to keep going up as they have been, which I feel is unlikely, or complete the build in a cost effective way. - Andrew
Hi Biz I didn't quite understand your reply. Did you mean that the returns will be great or not great ?
Hi Andrew Thanks so much for having a look ! Regular shaped blocks of land in Marsden park were sold at ~ $1280 per sqm in October/Nov per realestate dot com. Our block works out to 455000/492 which is $924 per sqm. If I consider the regular shaped part of the block ( 400 sqm ) , the cost turns out to be $1137 per sqm. Both costs are heavily discounted when compared to regular shaped blocks. I feel I have not overpaid. I have not done a feasibility analysis on the construction - I understand your point regarding a cost effective build if I need to realize CG in a short span of time. Thanks so much , again , for having a look !
