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

(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?

 

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).

 

How can you tell if it's an investor heavy area?

 

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.