Buying approved plan site with builder in place

Discussion in 'The Buying & Selling Process' started by JKWS, 17th Aug, 2021.

Join Australia's most dynamic and respected property investment community
Tags:
  1. JKWS

    JKWS Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    217
    Location:
    Australia
    Hello Brains trust,

    Chasing some honest thoughts and opinions, so no doubt PC community will shed some insight.

    Thoughts on buying a house and land package in Melbourne metro from a young builder/ developer?

    On paper it all looks good, it’s a fixed price contract etc- builder is making 25% margin which is a little higher than normal but not crazy.

    Only catch is, we have to use him as the builder and we have to commence building works within 12 months of purchase- otherwise the builder has the right to purchase the property back minus expenses.

    From what I gather he’s more a developer than builder, but in all honesty- very professional so we are confident in ability and quality, more the difference in structure he’s running?
     
    JKWS, 17th Aug, 2021
    #1