Hello all. I'd love to get your advice for my situation.
Basically, I put down $300 deposit for a block of land in one of the new Sydney estates. It's still in development and that land is going to be registered around July next year. It's in the last land release in that estate so the land supply is quite limited. My initial intention was to build a house on that land and I even paid for the house tender fee to one of the builders.
However, recently the same builder listed a new house and land package in the same estate with more land and at very good price which was too good to miss. Thus, I put down a deposit for that H&L. The land for this package is going to be released around September next year.
I'm now considering what to do with the initial block of land I put down the deposit for. I did not sign the contract yet so if I decide not to proceed I only loose $300 which is ok. However, I think the block has good potential to grow in value in 10 month time as it's up the hill and will be overlooking the reserve (which is not there yet and going to be created as land gets developed).
From the finance point of view, I would not be able to obtain loans for both the initial land block and the new H&L package. Thus, from what I can see there are basically two options:
1. Not to proceed with the land contract.
2. Proceed with the land contract and pay 5% deposit. When the land is registered (July next year) get a land loan, pay for land and immediately sell it as I'll need to get finance for the H&L package in two months (September next year). Sounds a bit risky.
Considering the second option I'm more or less positive that I will be able to sell the land at a profit as the demand is there (I know it's not guaranteed to be the same in one year though).
What kind of CG will I need to cover buying/selling/stamp duty (which is btw $3310) costs?
Please share your thoughts. Which option would you choose?
Basically, I put down $300 deposit for a block of land in one of the new Sydney estates. It's still in development and that land is going to be registered around July next year. It's in the last land release in that estate so the land supply is quite limited. My initial intention was to build a house on that land and I even paid for the house tender fee to one of the builders.
However, recently the same builder listed a new house and land package in the same estate with more land and at very good price which was too good to miss. Thus, I put down a deposit for that H&L. The land for this package is going to be released around September next year.
I'm now considering what to do with the initial block of land I put down the deposit for. I did not sign the contract yet so if I decide not to proceed I only loose $300 which is ok. However, I think the block has good potential to grow in value in 10 month time as it's up the hill and will be overlooking the reserve (which is not there yet and going to be created as land gets developed).
From the finance point of view, I would not be able to obtain loans for both the initial land block and the new H&L package. Thus, from what I can see there are basically two options:
1. Not to proceed with the land contract.
2. Proceed with the land contract and pay 5% deposit. When the land is registered (July next year) get a land loan, pay for land and immediately sell it as I'll need to get finance for the H&L package in two months (September next year). Sounds a bit risky.
Considering the second option I'm more or less positive that I will be able to sell the land at a profit as the demand is there (I know it's not guaranteed to be the same in one year though).
What kind of CG will I need to cover buying/selling/stamp duty (which is btw $3310) costs?
Please share your thoughts. Which option would you choose?