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RETURN ON INVESTMENT %

Discussion in 'Development' started by BUILDCORP, 4th Dec, 2015.

  1. BUILDCORP

    BUILDCORP Member

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    sydney
    I was wondering if its just me but the sydney market at the moment every deal i look into is only returning at best 15%, its becoming frustrating I'm looking for a minimum 20% return on my capital.
     
  2. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Perth WA
    Well the Sydney market is heading South isn't it!?
     
  3. BUILDCORP

    BUILDCORP Member

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    Yeah i know the market is cooling.I'm looking at unregistered land in a new estate in box hill at the moment 18 months until land registration, other builders are selling house and land at the moment for 15% margin. The land developers are not dropping prices due to the market changing and the general public are still buying. are they crazy or am i lol. I thought the market cool off price wise
     
  4. MTR

    MTR Well-Known Member Premium Member

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    market has peaked you would have rocks in your head buying now, smart money has already purchased and sold

    15% what is this?
     
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  5. BUILDCORP

    BUILDCORP Member

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    15% is the return on my investment. if I'm putting $1000000 into a deal the best return i seam to be getting back is $150000, for it to be feasible you need 20% to 25% i believe
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Do you mean the profit margin on a build?
     
  7. BUILDCORP

    BUILDCORP Member

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    yes buy land build a house then sell
     
  8. MTR

    MTR Well-Known Member Premium Member

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    you will need to consider what and where the market is at on completion, if it takes 9-12 months to build, very important.

    building land and house packages work well in rising markets
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    On what basis IRR?