QLD Brisbane new house and land - good IP?

Hello all,
It's my first post, sorry if it's already asked.

I live in Sydney, looking at house and land packages,.land to be registered in May 22. So builder says build will be mostly done by year end(single storey).. around 650k.

Do you all see any catch/issues in this as my first IP? I already have a PPOR in Sydney.

TIA

 

Where is it?

Are they putting the time to build in the contract? It seems to be very quick.

$650k hard to say if it is worth it without the location

 

Given rising prices and supply issues with building materials lately, how much can you rely on that timeline?

 

So does that mean altogether H&L is not the correct way for IP now? Or it's just the time to build and location vs price?

 

I worry about OP’s ability to make a sound real estate investment decision without realising how important location is

 

Yep. Without knowing this (location).....cost of build....and who is building. Impossible to ascertain . It is like driving blind.

 

Getting location information, builder is Metricon

 

wait, how can you be thinking about buying and not know the location?

 

Location is North Brisbane, Logan and Ipswich.

 

How big is the house?
How big is the land?
My guess is it won’t be 200m2 or on a block over 400m2.

Some of these new builds are seeing 3.6x3.6 for a master which is pretty small
The second living areas replicate something more of a study these days (basically useless)

 

OK I could say then it would be in the Ipswich/Logan new corridor. Land about 350-375k maybe about 400-450sqm...house 275-300k. Not worth it in my opinion....horse has bolted for Brissie. Try Perth.

 

Depends on your overall goals
What makes you think this H&L is better than buying existing property? If you've been sold this idea as part of a 'strategy' you need to do your own due diligence.

Perth H&L is attractive right now due to cash flow. 3x2x2 for $355k and $450pw rental income 35 mins from Perth cbd for example.

 

Where abouts in Perth in this?

 

You’ve just described over 50% of metropolitan Brisbane’s land area.

Please come back when you have a specific suburb and, even more helpful, a specific estate. Then we can provide helpful insight for you.

 

I'd be very wary of new builds right now. I was looking for a new build a few months ago and was constantly seeing sold out estates having blocks come up for sale.
Not sure if that's because of building delays or price spikes, but if you are wanting to sign up do some research on the builder - last thing you want is them going bust.

 

Definitely thats on my mind, the builder I am seeing is Metricon for now.
Also, finding ways to go for an established house from Sydney. Most of buyer agents selling particular developer blocks.

 

Hi,

I would be careful around the house and land package space because you normally pay a premium on the buy. I have found that the builder and the developer seem to make most of the money in that situation. With most of our purchases, we get them off the market, allowing us to negotiate a better purchase price. It's very hard to negotiate a good purchase price when the developer, builder, and marketing agent all make money on that purchase. I would recommend just going with an existing property in a good location, you are de-risking a lot of factors and you will be in a better position to negotiate. Another thing to know is that building material is going up at a record pace and builders who have fixed contracts 12 months ago are now struggling to even profit from there builds, so we will see some of the cheaper builders decide to close the doors so do your research on the builder.

 

Uncertainty about build is my concern too. Very difficult to find a buyer Agent showing existing properties as they don't make much in that transaction

 

unless you actually pay them to. Which is how a buyers agent should be paid.