VIC What are the pros and cons of buying and selling land?

Discussion in 'Where to Buy' started by Tekkars, 9th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. Tekkars

    Tekkars New Member

    Joined:
    9th Mar, 2020
    Posts:
    2
    Location:
    Victoria
    (In addition) I know somebody who owns 4 lands in Werribee. Would it be smarter for them to build homes on these lands and rent them out, or sell them as they are?
     
  2. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,104
    Location:
    Melbourne
    Less profit is an obvious con. The pro is you don't have to worry about getting the build done, no contracts, no holding costs/progress payments. Good for when you cant get finance for the build.

    As for if it's smarter to build or not, it depends on the individual's circumstances, the state of the market and location of the blocks. If it's an investor heavy area, you may not get as much rent as you would in an OO area. Same goes for better estate or not (aka location).
     
    Tekkars likes this.
  3. Tekkars

    Tekkars New Member

    Joined:
    9th Mar, 2020
    Posts:
    2
    Location:
    Victoria
    How can you tell if it's an investor heavy area?
     
  4. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,104
    Location:
    Melbourne
    By:

    - checking various websites for how many rental properties are in the area.
    - talking with the land sales agents.
    - talking with the REAs in the area.
     
    Tekkars likes this.