Making Money on House & Land Packages

Thank you for your honesty. I will have a look into these areas as I think it's a good strategy for later this year/ next year.

Is there anything an out of Towner should know about these areas like don't go zones or developments you wouldn't touch?

 

Nope beach side of Alkimos is good. Yancep is a bit too far from infrastructure.

 

Thanks Sash, awesome advice, I am more keen for these low investments instead of putting a 800-900k on the established SE in Melbourne

Established can have its own upside, however I find new properties more appealing and hopefully maintenance free

I have got few friends who are REA's and some also own an agency, however they always talk about JV and snapping up 8-10 blocks and doing it in volume in a way.

I am hesitant as they roll in quick with May be 1-2 days decision making whereas I take time to digest and understand and still may not be able to pull the trigger as don't have all the info available

When queried friends response is , it's calculated risk and worth going in, not sure they have seen down side so far, but I have missed out on few oppr.

Your post opens up different perspective and may be i should pull the trigger more often, only time will tell thanks Sash

 

Hi Sash,

If you would be looking in Melbourne which areas would you target
Point cook
Tarneit
Truganina
WYNDHAM vale
Werribee
Rockbank
Officer
Woodlea
Plumpton
Cranbourne
Berwick

 

Most on the list would be ok....the issue is price point...I like the land to be 260-300sqm so I can get a 3x2x2 with a 3.4m backyard. Land price should hopefully be under 160k and build fully complete under 180k.

House size should be at least 16sqm.

Trick up the house with 2590 ceilings, stone to kitchen, cooling, overhead kitchen cabinets, down lights, cabinet for laundry trough, etc.

 

My list exactly. I also add heat lamps to the bathrooms and a few extra GPOs like 2x dbl each bedroom and 1x quad point to TV areas. And because I go for the 4th bed I put a 900mm freestanding oven in. I go freestanding because it's easier to pull it out and fit a new one myself if any dramas in the future.

The other thing I like to do but costs a little is put a concrete path around the house up against the house this has a dual benefit of preventing water ingress under the waffle slab and means I don't have to top up gravel/topping paths. The little stones also have a way of coming inside on the shoes and scratching floor surfaces so better not to have them.

 

What about having an agi-drain around the slab and replacing the concrete with pavers? Really important when you have reactive soil. Also caulking an all the concrete joints...

 

I may add agi next to path when I am landscaping the finished product.

Why replace the concrete with pavers though? Is it for aesthetics?

Caulking is a good idea. I will do this when landscaping.

 

How does it work in terms of fixed (minimum alteration) designs that H&L come with ?
I guess the price reduction in block due to undesirability of block compensates for the price increase due to the custom build.

 

Great write up and discussion Sash and Cactus!
New to the H&L game care to share hot spots for new estate in the Brisbane area ?

 

I am doing one now...total cost is only 260k......potential rent is 320-330pw.

 

I suspect the problem with Brisbane H&L packages is that since the existing housing is more or less affordable and being closer to the CBD the demand for H&L (which are usually further away from CBD) may not be as high as in Mel/Syd where people are pushed out further away because of the higher prices. Thus, CG for Brisbane H&L may be lower at this point. Just my thoughts, not sure what happens in Bri H&L market at the moment.

 

I think so too. Looking around there aren't many H&L packages that I believe offer good value in Brisbane comparing to existing houses. Saying that you don't know what you don't know. Didn't think profiting via H&L packages is a thing till this post.

 

@hpresident Definitely possible in Syd/Mel because of higher prices. Did this successfully with two H&L in SW Sydney.

 

ditto and the other issue is stamps qld much cheaper on existing than melb

 

Yep, just aesthetics but up to you...there are so many options for landscaping!

 

Oh ok, I was going to paint the concrete path with a non slip charcoal coloured sealer. Pavers would be nice though.

 

Exactly! As well as looking nicer than the usual stone or loose gravel fill, those concrete paths are vital to the houses long term structure/stability. The last thing you want is water ingress under your slab as over time the moisture levels in the dirt under the slab will change. This causes movement and slab heave. Thus causing the slab to gradually move and resulting in a weakened structure (cracks in walls etc).
This was a major problem for some who built in the newer estates in Melbournes west over the last few years.

 

Is the concrete extra cost to the build? how much more? $5k?

 

this is common for waffle slabs as oppose to raft slabs and there are a large number of people who have that issue. it is happening more in the west like tarneit, point cook etc where the soil is more reactive. concreting is not that expensive $40-$60 per sqm but i prefer just using rock and mulch with AG pipes around.