Buy and flip in the bush? (250k)

Discussion in 'Where to Buy' started by JamesP, 6th Jul, 2016.

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  1. JamesP

    JamesP Well-Known Member

    19th Jun, 2015
    Hey was just hoping to get some thoughts on this idea I've had for a while. I've noticed in the Dandenongs blocks of land are selling for sometimes well under half the total cost as they do with homes on them.

    36 Seaview Road Cockatoo Vic 3781 - Residential Land for Sale #200761819 -

    For comparison

    12 Seaview Road, Cockatoo VIC 3781 - View Sold History & Research Property Values -
    Sold Price for 22 Seaview Road Cockatoo Vic 3781
    Sold Price for 30 Seaview Road Cockatoo Vic 3781

    It's an idea that's interested me for a while. I was essentially thinking we could put up a pole house/kit home to save on excavation. The main issue appears most of the blocks haven't had BAL assessments, if the BAL rating is 19 or over, you must use a slab floor etc which usually involves cutting into the block (70k cost). Costs for tradesman to access the block will also be far greater. This would ideally be majority owner builder constructed. If I found ways to work around these challenges and picked the right block that suited these strategies, I'm thinking there could be a decent amount of profit, potentially 6 figures, which is great for the low price point.

    It looks like a fun but stressful idea. For example the council have told me the block requires firetruck access whereas the neighbors and the CFA have said their fireplan is "run". The CFA have told them trucks won't go up there as it's far too steep and inaccessible. Yet people are building homes there with I assume planning permits etc, which have been passed without this requirement. I'd imagine there's going to be far more complicated headaches than that, vegetation overlays, no sewer on half the blocks up there also.

    Would you touch it? Or big mistake haha?