House and Land Packages

This strategy works for a lot of investors. However, the majority by from marketeers that get hidden commissions of $30k plus and have negative equity from the start due to over inflated prices.

House and land can work if you are selective on the areas. There are small pockets being developed in older areas that is close to transport and work.

New houses give you the best tax benefits and better rental yield. If you do a house and land then you are the developer as builders that do speckies they will load the price by $50 to $100k to cover costs and make a small profit.

I have helped a few clients with this strategy and they where able to realise a profit on completion.
 
If i stick to Sydney, my budget will be north of 500k, i've been looking at Oran Park, Edmondson Park and Middleton Grange, which have boomed well beyond my budget, and offer only small parcels of land (280-320), which I don't necessarily prefer.

The over supply of vacant land in these new estates is turning me off going ahead with this option, and I've since reconsidered H&L packages. Not to say its out of the question, i still monitor what's available, but i may need to look interstate if i want to find something affordable.

Do you think land prices will get cheaper? developers will take 10 years to finish an estate if they have to but they wont make 300sqm blocks cheaper thats for sure.. They're going up like $50-100/sqm every release in the areas you named
 
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