Hi there, the lot size is not the problem, neither is the community title. The problem is the end value.
Elizabeths, all of them, Park, Vale, Downs, etc rose from $80K for HT homes not that long ago & reached the high 200s to above 300K
I looked at blocks that could end up with 3 houses on about $35K apiece before building. But the profit margin was just not worth the hassle. That was before I saw the BOOM of course.
Say I bought your block for $50K and I build a house very economically for $130K, my cost would be about $200K
I can sell for $250K but the ones who profit would be the govt [GST, tax & stamp duty], the bank [interest costs] and the selling agents.
I risk my money, my time, my efforts, for who or for what?
If I held, I end up at the mercy of managers & poor tenants.
So it makes sense for you to build & hold, not for me to buy from you to build.
KY
Yes, very good point.
When I had those 2 HT semis, I was just thinking about how to maximise those, thus subdivision Now those blocks are worth something, just that value I can not use which is annoying. If I build, I can use those as collateral to borrow for other projects as it is going to have a cashflow, it's just I am in Sydney and building could be a hassle.
Was thinking of selling those 2 front houses, but the CGT is going to kill it as those were very cheap back in 98