Buying land and splitting it up

Discussion in 'The Buying & Selling Process' started by Cimbom, 14th Jun, 2017.

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  1. Cimbom

    Cimbom Well-Known Member

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    Back in Canberra!
    Just wondering what others opinions are on this? If it was an established suburb with not much vacant land, would this be a good strategy to limit holding costs if the initial buyer doesn't meet the serviceability criteria to build two dwellings? The "profit" could then be put into the building costs for the one property that will be lived in. It is just a thought bubble for now.
     
  2. Phase2

    Phase2 Well-Known Member

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    Perth
    Probably only for a hot/rising market. Otherwise you might as well just buy a block with an old house on it to help with your servicing costs and do the landbanking/late subdivision thing..