Is this sustainable…..Clyde North,VIC. Help in deciding strategy for H&L

Discussion in 'Investment Strategy' started by PropNewbie73, 31st Oct, 2021.

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  1. PropNewbie73

    PropNewbie73 Active Member

    Joined:
    31st Oct, 2021
    Posts:
    27
    Location:
    Melbourne
    Here is my story……

    So I purchased some land in Clyde North, Victoria. The block is approx 500sqm bought for 350,000.
    I have no intention of living in the area…..however, I can live at the place for 12months as my PPOR if there is $$$$.

    I have done my research and have noticed the following homes selling for A LOT as follows;

    https://m.realestate.com.au/sold/property-house-vic-clyde+north-1371956
    Sold for 1.2M

    https://m.realestate.com.au/sold/property-house-vic-clyde+north-136951174
    Sold for 1.35M in September 2021


    https://m.realestate.com.au/sold/property-house-vic-clyde+north-137195618
    Sold for 1.2M in Sept 2021


    https://m.realestate.com.au/sold/property-house-vic-clyde-136760546
    Sold for 1.225 in Oct 2021

    The above homes are very nice and research is telling me that it will cost me approx 550K to build such homes. So total cost 900K plus holding, stamp duty etc. However, I can clearly see at least 300K profit.

    Is there anything I am missing?
    Who is buying such houses?
    Will I be unlucky with the market correcting in the next 2 years.
    Any way this might go another way?
    Is the demand for new nice houses a result of Covid and will be disappearing soon?