Has anyone done a rebuild with a project home and make a profit? I am thinking of this as a start to my development journey to get some cash for further development.
This is one which is currently on the market: Linky - it was greenfield site in a developed area up until recently.' Previous sold prices - Linky
Are you talking land and house packages? these work well in rising markets. I would be looking at a minmum of 20% profit. Stick to a sweet price point where there is demand.
@MTR - very high twos. Tomorrow, a little bit more The street record was set a couple of weeks ago (can't remember $). IMHO this is a better block - high side of the street, north to rear, elevated etc.
You must be joking, I am totally technically challenged. I find them. I wish I could post my favourite, but it would be deleted immediately... damn
not land and house package. Hoping to buy a old house knock it down and put a single storey project home and sell for a 20% profit. It would be in a establish suburb border to a trendy suburb hopefully.
ok sounds good, however make sure you don't ignore market conditions, it may take 12 months to build that is a long time between drinks, especially if you need to sell also look at returns/yields if you need to hold Look at all risks, worse case scenario, just in case....
If the market has been booming, generally 18 months-3 years is a boom cycle. Some very obvious signs - Is more stock coming onto the market? Do you notice it's starting to take longer to sell Are auctions no longer as efficient Are agents now returning phone calls, unusual in a boom market Media reports are starting to change from positive to negative
Thank THANKS MTR now is a good time to start planning for the next boom cycle in Sydney i believe. But i have to sell my apartment first to free up the money. So may take a while to sell this. Timing the market is very important as pointed out by you and Azazel. Now my next question is anyone can comment on which real estate agent is a good sellers agent? My apartment will have a lot of competition as its a huge block now being settled. I need one that can sell in tough times at market price not reduced to sell price. I m thinking of McGrath but their commission is very high.
What would you do (at various stages of committed-ness) if these signs were starting to become evident after you had already started into the 12 month process?
Its dependent on what your strategy has been? If its a buy and hold - and have made some great capital gains and can see the market sentiment turning I would take some money off the table before the market peaks. I generally buy more than 1 property, by selling down you are reducing your debt, increasing serviceability and you are also perhaps making another property cash flow positive and able to move onto other opportunities/rising markets. As for developing - if you purchased in a rising market that is a big plus because the land has risen so you have already made your money, therefore once the build is completed there should presumably be enough fat in the game. However, if the gains have been significant on the land then sometimes its actually better to flip the land or just put together plans and permits. I know a PC member that has just put together plans and permits for 4 townhouses and just on sold with a profit of $500K in Melbourne market, I think in a 9 month timeframe. Try doing this in a day job. If you can make the market your friend and go with the trend there is money to be made, if you ignore it then it will take a lot longer to reach your goals. MTR
