If You were in my position??

Hey all
Need bit of advice on what approach to take.
option 1:
buy land and build a house or duplex, as a license builder this would be at a reduce cost then someone else (i hope)
or option 2:
buy an existing house.

i am looking at the long game buy and hold, but if i build a duplex i might sell one and hold the other (thoughts).

currently have 600K in equity with PPOR.

thanks

 

Whats the numbers tell you?

Both from a resale perspective and from a cashflow perspective particularly when you factor in depreciation benefits. What are the tax consequences with the selling one? What do the numbers look like if you were to hold both?

 

I suppose it depends on the location
Best to keep the land (rent the land) and avoid the building (which has depreciaton disbenefit)

 

thanks, i guess at the end of the day it is all about the numbers, i think i will struggle to hold both a house on a duplex at first, a free standing single house would have to be the first step i think.

 

the build is where i will hopefully make the most equity up front due to saving on the build cost and then revalue when finished.

 

What will be the end value of the build and how much equity would you have gained?

Established house on a block of land may be worth much more years later, vs duplex (as you would have sold one).

Land will appreciate in value and building depreciate.

In some instances you will find, its easier to buy, set and forget.

Given you are a builder, have you considered adding value to an existing property?