House vs vacant block

[godette]

Hello everyone... can I just ask what are the pros and cons of investing in a vacant block instead of a ready built house? Thank you!

 

[wylie]

If you buy a block of land that increases in value due to re-zoning or something then you could say the costs of holding the land whilst not getting any income from it would be worth it.

But from day one a house should bring in rent to help pay the mortgage.

 

[bashworth]

With a ready built house you know your total investment before you start.

If you are buying the land to build then there are all sorts of costs that may not be apparent such as site costs (see: http://www.anewhouse.com.au/2012/01/what-will-it-cost/ for more info on possible costs)